Analysts Downgrade Rivian Stock Amid Market Risks

Rivian Automotive has faced significant stock volatility, with shares dropping after Bank of America downgraded the company to an 'Underperform' rating and cut its price target from $13 to $10. Analyst John Murphy cited Rivian's disappointing 2025 sales forecast of 48,500 vehicles, which fell short of Wall Street's expectations, along with increasing competition in the electric vehicle market. Guggenheim Securities also lowered its price target to $16 while maintaining a 'Buy' rating, noting strong operational achievements despite industry challenges. Meanwhile, Canaccord Genuity remains optimistic about Rivian's strategic partnerships, particularly with Volkswagen, as a means to diversify revenue streams. Overall, the consensus rating among analysts is a 'Hold,' reflecting mixed perspectives on Rivian's future amidst a competitive landscape. The company's recent recall of over 17,000 vehicles due to a headlight issue adds to the challenges it faces in a volatile sector.