In a recent first-quarter update, Rivian Automotive (RIVN -0.71%) left its full-year targets unchanged, disappointing some investors who were hoping for an increase in electric vehicle (EV) production estimates for 2024. However, one Wall Street analyst sees a promising future for the emerging EV manufacturer.

After the update, Needham analyst Chris Pierce reiterated his "buy" rating on Rivian shares and set a price target of $13, which implies a potential upside of nearly 30% from current levels. Pierce believes that Rivian has the potential to become a long-term winner among the growing group of EV manufacturers for several reasons.

Despite a slowdown in adoption trends among EV buyers, Rivian continues to appeal to consumers with its brand and is planning to expand its product lineup. The company is working on adding a next-generation mid-size sport utility vehicle platform, demonstrating its determination to move beyond the current short-term situation.

Notably, Rivian made a strategic decision to optimize its capital spending plans by revising its manufacturing strategy. The company now plans to produce its mid-size R2 vehicles at its existing manufacturing plant in Illinois, delaying the construction of a second facility in Georgia. This shift is expected to save Rivian a considerable amount of capital, reducing its capital spending projections for 2024 by $550 million to $1.2 billion. These savings are expected to extend into 2025 and 2026, aligning with the start of R2 production. Rivian's management estimates that total savings could surpass $2.25 billion.

Despite the near-term challenges, Rivian maintains its optimism and expects to achieve positive gross profit in the fourth quarter of this year. Pierce, the Needham analyst, looks beyond the next few years and bases his price target on the firm's projected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2028.

Pierce's optimism stems from the premise that Rivian will successfully upgrade its Illinois facility, enabling it to reach its maximum capacity of 215,000 units per year by 2023. This projection aligns with Rivian's plans for future growth and expansion.

Investors who have confidence in Rivian's long-term prospects and its ability to execute its strategic plans may find this an opportune time to invest in the company's stock. As always, it is important for individual investors to conduct thorough research and consider their own financial objectives before making any investment decisions.

It is worth noting that Howard Smith, the author of this article, holds positions in Rivian Automotive, while The Motley Fool has no position in any of the stocks mentioned.