Why Did Rivian Stock Plunge Today?

Group 1 - Rivian Automotive's stock experienced a significant decline, dropping nearly 10% after a second Wall Street analyst recommended selling shares this week, with a current decrease of 7.9% as of 3:21 p.m. ET [1] - High expectations for Rivian's future, particularly regarding the production of its next-generation R2 SUV and autonomous driving software, led to a nearly 50% increase in shares last year, but analysts now believe these expectations may be overly optimistic [3][4] - UBS analyst Joseph Spak downgraded Rivian's stock from "neutral" to "sell," setting a price target of $15 per share, while Wolfe Research also downgraded the stock, indicating that benefits from self-driving technology may not be realized until late 2026, with a price target of $16 per share [5] Group 2 - The current sentiment on Wall Street suggests that Rivian's stock has outpaced its near-term catalysts, particularly in AI and R2 sales, indicating that investors should view the company as a long-term story with 2026 being a pivotal year [6] - Analysts are advising caution regarding Rivian's stock, highlighting that its autonomous driving technology is still in early development and that impressive sales of the R2 model are crucial for the company's performance this year [8]