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]

Core Viewpoint - Rivian Automotive announced the introduction of an in-house "autonomy computer" aimed at enhancing self-driving capabilities, but the market reaction was negative, with shares dropping significantly after the announcement [1]. Group 1: Company Developments - Rivian held its first "Autonomy and AI Day" in Palo Alto, CA, where CEO R.J. Scaringe unveiled the company's first in-house autonomy processor [1]. - The core of Rivian's autonomy platform will be based on AI processors developed internally, which will improve through data collected from the company's fleet of vehicles [4]. - Starting in late 2026, Rivian's third-generation platform for R2 vehicles will feature advanced technologies including cameras, radar, and lidar [5]. Group 2: Market Reaction - Following the announcement, Rivian's stock initially fell by as much as 10% but later rebounded slightly, closing down by 4.5% [2]. - The current stock price is $16.65, with a market capitalization of $21 billion [6][7]. - Investors expressed disappointment over the lack of immediate advancements in hands-free driving capabilities, despite the announcement of an over-the-air update for existing R1 customers [7]. Group 3: Future Plans - Rivian plans to introduce an Autonomy+ subscription service that will provide continuous updates and improvements to its autonomy features [8]. - The company aims to allow vehicles to drive point-to-point by 2026, but investors were looking for more specific timelines regarding hands-free driving capabilities [7].