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Rivian downgraded to Neutral at Guggenheim amid continued R1 softness

Guggenheim analyst Ronald Jewsikow downgraded Rivian (RIVN) to Neutral from Buy without a price target The firm cites softer long-term R2/R3 assumptions driven by softer R1 sales and negative U.S. Electric Vehicle and Emissions policy changes for the downgrade. Guggenheim remains confident in cost-reduction targets for the R2, the firm no longer has confidence in the required volumes and/or required ASPs to support the prior price target the analyst tells investors in a research note. Softening R1 demand is a modest negative for R2 and R3 volumes, and the loss of EV incentives is likely to negatively impact long-term ASP and/or volume potential as well, the firm says.

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