A Rivian Automotive RIVN analyst downgraded the stock with short-term pressure for the company and the electric vehicle sector.The Rivian Analyst: Piper Sandler analyst Alexander Potter downgraded Rivian from Overweight to Neutral and lowered the price target from $19 to $13.Read Also: Rivian Automotive Q4 Earnings Highlights: Revenue Beat, EPS Beat, 2025 Guidance, R2 UpdateThe Analyst Takeaways: Rivian has a favorable outlook in the coming years, but faces a short-term outlook that won't get investors exci ...

Shares of electric vehicle (EV) maker Rivian Automotive Inc (NASDAQ:RIVN) are sinking this morning, off 2.6% at $11.06, at last check. Driving the shares lower is a downgrade to "neutral" from "overweight" and price-target cut to $13 from $19 out of Piper Sandler, the brokerage citing unidentifiable growth catalysts for 2025, brushing off the company's broader strategic strengths.RIVN posted a narrower-than-expected fourth-quarter loss back in February, but the beat was overshadowed by a grim delivery forec ...

Investors might have been a collectively gloomy bunch on Tuesday, but they ended up being positive about the future of electric vehicle (EV) maker Rivian Automotive (RIVN 1.72%). On the back of a new and bullish analyst note, they traded the stock up by almost 2% during the day. That was in marked contrast to the general trajectory of equities, reflected in the S&P 500 index's 1.1% decrease. Potentially electrifying returnsThe analyst behind the positive note was Benchmark's Mickey Legg, who that morning re ...

Rivian Automotive Inc‘s RIVN stock officially entered a Death Cross, a bearish technical signal that occurs when the 50-day simple moving average (SMA) drops below the 200-day SMA. Chart created using Benzinga ProThis pattern often indicates sustained downside momentum, and with Rivian stock already down nearly 18% year to date and over 24% in the past month, the technical outlook isn't encouraging.Read Also: Rivian’s Georgia Facility To Be Ready In 2028, EV Exports To Foreign Markets After R2 Production Ra ...

Core Viewpoint - Rivian is facing a challenging year in 2025, with its stock down over 18% year-to-date, currently trading at $10.75, and lacking strong catalysts to attract investors [1][4]. Financial Performance - Rivian reported its first gross quarterly profit of $170 million in Q4, beating earnings expectations, with revenue of $1.73 billion, surpassing the expected $1.4 billion [4][5]. - The company aims for a "modest gross profit" in 2025, with adjusted losses expected to narrow to $1.7 to $1.9 billion from $2.69 billion in 2024 [5]. - Analysts project Q1 2025 revenue at $993.66 million, down 17.47% year-over-year, but expect a 22.59% increase to $1.42 billion in Q2 [6]. Revenue Forecast - Full-year 2025 revenue is forecasted at $5.39 billion, an 8.38% increase year-over-year, with 2026 projected to surge to $7.48 billion, a growth of 38.87% [6][9]. - Deliveries for 2025 are expected to be between 46,000 and 51,000 units, down from 51,579 in 2024, with no new model releases until 2026 [9]. Market Dynamics - Rivian's stock remains under a long-term downtrend, with a critical resistance level at $20 and support around $10 [2][3]. - The high interest rate environment and macroeconomic conditions may limit growth prospects for Rivian [4]. Growth Catalysts - Potential growth catalysts include expanding commercial sales beyond Amazon and unique partnerships, such as with Ben & Jerry's for electric ice cream trucks [10]. - Rivian's product pipeline, including the upcoming R2, R3, and R3X models, is expected to drive future growth, with the R2 launching in 2026 [11]. Analyst Ratings and Price Targets - Wall Street analysts have set an average price target of $14.34 for Rivian, indicating a potential upside of 33.4% from the current valuation [12]. - Analyst opinions vary, with some maintaining a 'Hold' rating and others expressing bearish views, citing high per-vehicle losses and slowing volume growth [13][14].

Group 1 - Rivian Automotive's stock closed at $10.76, with a daily increase of 1.41%, underperforming the S&P 500's gain of 2.13% [1] - The stock has decreased by 20.23% over the past month, which is slightly better than the Auto-Tires-Trucks sector's decline of 20.63% and worse than the S&P 500's loss of 9.57% [1] Group 2 - Rivian is expected to report earnings of -$0.80 per share, reflecting a year-over-year growth of 32.77%, while revenue is projected at $1.01 billion, a decrease of 16.47% compared to the same quarter last year [2] - For the entire year, the forecasted earnings are -$2.87 per share and revenue of $5.45 billion, indicating year-over-year changes of +28.96% and +9.61%, respectively [3] Group 3 - Recent changes in analyst estimates for Rivian Automotive are crucial for investors, as upward revisions indicate positive sentiment regarding the company's business operations [4] - The Zacks Rank system, which includes estimate changes, currently ranks Rivian at 4 (Sell), with a 15.08% decrease in the consensus EPS estimate over the last 30 days [6] Group 4 - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 160, placing it in the bottom 37% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Rivian Automotive has launched a significant software update for its R1S and R1T vehicles, introducing hands-free highway driving through the Enhanced Highway Assist system, which requires driver attention [1] - The company plans to implement an "eyes-off" driving feature by 2026, potentially necessitating additional hardware like LiDAR [2] - Rivian's first-generation R1 models will not receive hands-free driving but will benefit from other updates, including a new "Rally" mode for enhanced off-road performance and an over-the-air Performance Upgrade option [3] - Additional improvements include adjustable wheel size settings, automatic mirror tilt in reverse, a "Go Chime" feature, and a tire puncture detection system [4] - The updates reflect Rivian's commitment to software innovation and consumer convenience through remote delivery of improvements [5] Challenges Facing Rivian - Rivian is encountering several challenges, including a volatile regulatory environment affecting EV subsidies, tariffs, and emissions rules, which may impact pricing and demand [6] - The company has a soft delivery forecast for 2025, estimating 46,000-51,000 vehicles, a decrease from 51,579 in 2024, indicating ongoing challenges [6] - The competitive landscape is intensifying, with legacy automakers and new entrants vying for market share, compounded by political endorsements favoring competitors like Tesla [7] - Rivian is experiencing cash burn due to high capital expenditures for expansion, particularly in its Normal and Georgia facilities, making sustained profitability a significant hurdle [8]

Core Viewpoint - Rivian is facing challenges due to its strategy of developing autonomous driving technology in-house rather than licensing it, which may not be sustainable given its current scale in the automotive industry [1] Group 1 - Rivian is burning billions of dollars annually while producing vehicles [1] - The company is investing in building autonomous driving technology internally [1] - This approach is considered a misalignment with Rivian's current position in the auto industry [1]

Core Viewpoint - Rivian Automotive is leveraging its in-house technology to create new revenue streams, exemplified by its performance upgrade offering for its vehicles [1][5]. Group 1: Performance Upgrade - Rivian is set to release a software update that enhances the performance of its second-generation R1S and R1T vehicles, increasing horsepower from 533 to 665 and torque from 610 to 829 lb-ft [2][3]. - The upgrade reduces the 0 to 60 mph time from 4.5 seconds to 3.4 seconds and includes specialized driving modes for different terrains [3]. - Consumers will need to pay an additional $5,000 to access this performance upgrade, which is significant given the starting price of a second-generation R1S is just under $76,000 [4]. Group 2: Technology and Joint Ventures - Rivian's vertically integrated technology platform allows it to develop its own tech in-house, which can be monetized by selling to other automakers [5]. - The company has formed a joint venture with Volkswagen Group valued at up to $5.8 billion, combining their strengths to create advanced software and electronic architecture [6]. - This partnership is expected to provide Rivian with cash flow and scale while collaborating with a major automotive player [7]. Group 3: Financial Progress and Future Outlook - Rivian has achieved a positive gross profit in the fourth quarter and is currently establishing an R2 production line in Illinois, with plans for R3 and R3X models to follow [8]. - The R2 model is also set to expand into international markets, indicating potential growth opportunities for the company [8]. - The introduction of consumer-focused strategies like the Rally mode could contribute significantly to revenue, even with a modest adoption rate [9].

Core Viewpoint - Rivian remains one of the most highly valued electric vehicle (EV) companies globally, despite the necessity to invest billions in operations and expansions over the next five years [1] Company Analysis - Rivian is facing significant financial demands, requiring substantial capital for both operational costs and growth initiatives [1] - The company is positioned as a new player in the EV market, presenting potential investment opportunities alongside inherent risks [1] Market Context - The valuation of Rivian reflects its popularity and market perception, but questions arise regarding its ability to sustain this valuation amid high expenditure requirements [1]