Morgan Stanley analyst Adam Jonas maintained a Hold rating on Rivian Automotive today and set a price target of $12.00.
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Adam Jonas has given his Hold rating due to a combination of factors impacting Rivian Automotive’s financial outlook and strategic positioning. The company has revised its 2025 full-year adjusted EBITDA loss guidance to a wider range, citing challenges such as policy changes, lower expectations for regulatory credits, rising tariffs, and supply chain uncertainties. These factors contribute to a more cautious outlook on profitability, with the gross margin forecast adjusted to roughly breakeven, down from previous expectations of a modest positive gross profit.
Despite these challenges, Rivian remains on track with its plans for the R2 launch and continues to focus on cost optimization and production scaling. The upcoming AI and Autonomy Day is anticipated to shed light on Rivian’s technology roadmap and AI strategy, which could offer potential value beyond its core EV manufacturing business. However, the balance between achieving profitability as an EV manufacturer and leveraging its technology in partnerships with other OEMs, such as Volkswagen, remains a critical consideration. These elements collectively inform the Hold rating, reflecting a balanced view of risks and opportunities.
According to TipRanks, Jonas is a 4-star analyst with an average return of 4.7% and a 52.64% success rate. Jonas covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Ferrari, and Carvana Co.
In another report released on August 8, D.A. Davidson also maintained a Hold rating on the stock with a $13.00 price target.