"Shares of Rivian Automotive Inc. ( NASDAQ: RIVN) are trading for 14.2% less than a week ago. Some analysts downgraded the stock, citing high cash burn and the absence of immediate catalysts. The EV maker also recently announced a year-over-year decline in deliveries. The partnership with Volkswagen remains, and the CEO reaffirmed that R2 SUV deliveries are on schedule for the first half of 2026. The share price is still 18.0% higher than six months ago, outperforming the S&P 500 in that time."
"Rivian is grappling with significant obstacles. Fourth-quarter deliveries totaled 9,745 vehicles, a 31% decrease year over year. For all of 2025, it delivered 42,247 vehicles, which was an 18% decline compared with a year ago. It cited softening demand due to the expired EV tax credits, as well as economic uncertainties and shifting consumer sentiment, as well as tariffs that are increasing manufacturing costs. So, sales for the current quarter could be weak. Analysts anticipate Rivian will deliver about 66,000 EVs in 2026."
Rivian stock fell 14.2% over the past week amid analyst downgrades citing high cash burn and a lack of near-term catalysts. Revenue rose slightly year over year to $1.6 billion and the company posted a narrower-than-expected loss. The company indicated the quarter was likely its strongest delivery quarter of the year due to the expiration of federal EV tax credits. Fourth-quarter deliveries were 9,745 vehicles, down 31% year over year, and 2025 deliveries totaled 42,247, down 18% year over year. The company cites softer demand, economic uncertainty, shifting consumer sentiment, and tariffs raising manufacturing costs. Analysts project about 66,000 deliveries in 2026 while the Volkswagen joint venture and the R2 SUV launch and ongoing cost efficiencies serve as potential recovery drivers.
Read at 24/7 Wall St.
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