Why Rivian Automotive Stock Is Moving Lower
Portfolio Pulse from Erica Kollmann
Rivian Automotive, Inc. (NASDAQ:RIVN) stock is trading lower after Deutsche Bank downgraded the stock from Buy to Hold and reduced the price target from $29 to $19. The downgrade is due to an anticipated volume guidance of only 65,000 units, factory shutdowns, and a slow production ramp-up, which may lead to significant losses until Q3 2024. Deutsche Bank suggests that showcasing R2 models in 2024 could improve sentiment but is skeptical about it offsetting the year's losses. Rivian's R1S ranked seventh in U.S. EV sales with 24,783 units sold.
January 17, 2024 | 4:00 pm
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Rivian's stock is expected to face downward pressure in the short term due to Deutsche Bank's downgrade and lowered price target, reflecting concerns over production challenges and anticipated losses.
The downgrade by a major bank like Deutsche Bank can significantly influence investor sentiment, especially when it is accompanied by a substantial reduction in the price target. The concerns over production delays and extended losses are likely to weigh on the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100