Rivian: Structurally Challenged EV Economics and Persistent Cash Burn Justify Underweight Rating and $9 Target

In a report released on March 20, Ryan Brinkman from J.P. Morgan maintained a Sell rating on Rivian Automotive, with a price target of $9.00.

Ryan Brinkman has given his Sell rating due to a combination of factors tied to Rivian’s financial profile and industry backdrop. He highlights that despite Rivian’s appealing products, strong partners, and potential enthusiasm around its brand, the company is still posting very large operating losses and heavy cash burn that are expected to worsen in the near term, reflecting what he sees as a structurally challenging EV market.

Brinkman also notes that while the Uber partnership is strategically helpful—providing external validation of Rivian’s autonomous ambitions and helping to fund and accelerate development—it does not offset the risks of continued high cash outflows, execution uncertainty around Level 4 autonomy, and dependency on meeting ambitious milestones. When compared with traditional automakers like GM and Ford, he views Rivian’s valuation as demanding relative to its risk profile, leading him to maintain an Underweight rating and a $9 price target for December 2026.

In another report released on March 8, Morgan Stanley also maintained a Sell rating on the stock with a $12.00 price target.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is neutral on the stock.