"The analyst downgraded Rivian from Buy to Hold due to soft demand, despite recent cost cuts helping maintain a slightly more optimistic outlook."
"Rivian's stock has plummeted over 90% from its peak of $179 in November 2021, highlighting its struggle with low sales and significant losses."
"While Rivian reported a gross profit of $206 million, the overall picture remains bleak with a net loss of $545 million and weak vehicle delivery numbers."
"Management's commentary on exceeding demo drives failed to convince investors, as only 8,640 vehicles were delivered, showing a disconnect between interest and actual sales."
A Jefferies analyst has downgraded Rivian Automotive's stock from Buy to Hold amid concerns of soft demand and a challenging financial outlook. Despite the company implementing cost-cutting measures, Rivian faces a significant decrease in deliveries and has posted substantial losses. In the latest quarterly report, Rivian revealed a net loss of $545 million while only delivering 8,640 vehicles in the quarter. This poor performance has caused the stock price to drop over 90% from its initial high of $179. The company also reduced its delivery forecast for 2025, compounding investor concerns about its market viability.
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