Rivian’s stock has been under pressure since its second-quarter earnings report, which showed a larger-than-expected loss and a lowered EBITDA forecast for Fiscal Year 2025. Although analysts are generally positive about the EV company’s long-term potential, many are worried that the end of federal EV tax credits could hurt demand for Rivian’s upcoming R2 SUV, which may force the company to lower prices and make its already negative profit margins worse.
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Indeed, UBS’ Joseph Spak said that while Rivian is still aiming to break even on EBITDA by 2027, the loss of tax credits is a setback, and the market will likely wait for evidence that management can offset it. Separately, 4.5-star Cantor analyst Andres Sheppard kept a Neutral rating after pointing to weaker delivery expectations, economic uncertainty, tariffs, and Rivian’s unclear position when it comes to self-driving and charging technology. Although he mentioned positives, such as the Amazon (AMZN) partnership and Volkswagen (VWAGY) joint venture, he also criticized the disappointing delivery guidance and much lower-than-expected gross margin.
However, other analysts remain confident. In fact, Wedbush’s 4.5-star-rated Dan Ives called Rivian a “work in progress” after noting that the company kept its 2025 delivery forecast while adjusting its EBITDA target in order to deal with economic challenges. As a result, he kept an Outperform rating with a $16 price target. Needham’s Chris Pierce also reiterated a Buy due to Rivian’s strong cash position, vertically integrated structure, and expected improvements in cost efficiency when the R2 platform launches in early 2026.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 15 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $14.92 per share implies 28.2% upside potential.
