What Happened?
Shares of electric vehicle manufacturer Rivian (NASDAQ: RIVN) fell 3.1% in the afternoon session after a downgrade from Guggenheim analyst Ronald Jewsikow, who moved the electric vehicle maker's rating to 'Neutral' from 'Buy'. The downgrade reflects growing concerns over weakening demand for Rivian's current R1T pickup and R1S SUV models. Guggenheim also pointed to headwinds from recent U.S. policy changes, including the elimination of the $7,500 federal EV tax credit, which could negatively impact future sales and profitability. The firm lowered its 2028 sales forecast for Rivian significantly, from 185,000 units to 150,000, citing the softer demand for the R1 platform as a potential negative indicator for the upcoming, lower-priced R2 and R3 models.
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What Is The Market Telling Us
Rivian’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Rivian is down 4.1% since the beginning of the year, and at $12.71 per share, it is trading 29.2% below its 52-week high of $17.94 from July 2024. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $126.13.
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