Rivian Automotive Stock Stumbles as AI Hype Fades

Rivian Automotive ( (RIVN) ) has fallen by -12.95%. Read on to learn why.

Rivian Automotive shares fell sharply over the past week, sliding 12.95% as a wave of analyst downgrades and cooling AI enthusiasm hit the stock. The pullback accelerated after UBS cut its rating from Neutral to Sell, arguing that the recent rally had already priced in much of the excitement around Rivian’s artificial-intelligence and autonomous driving ambitions. Wolfe Research had issued a similar downgrade just a day earlier, reinforcing the sense that Wall Street is reassessing the risk/reward profile after last year’s autonomy-driven surge.

Analysts now see fewer near-term catalysts for Rivian Automotive, particularly on the self‑driving side, with key “point‑to‑point” and more advanced “eyes‑off” capabilities not expected until 2026–2027. That timeline, combined with rising competition in autonomous technology and questions over Rivian’s ability to license its software to other carmakers, has tempered expectations. At the same time, optimism around the upcoming R2 model is being challenged: UBS forecasts R2 sales in 2026 and 2027 well below current market hopes, warning that investor enthusiasm may be running ahead of realistic production and demand.

Pressure is also coming from Rivian Automotive’s broader financial picture and the electric‑vehicle backdrop. The company continues to post sizable losses despite strong revenue growth, and analysts flag rising costs, heavier cash burn from capital spending and working capital needs, and a tougher U.S. EV market without generous tax credits. Insider share sales in recent months have added to investor unease. While the average Wall Street rating on the stock now sits at Hold, with price targets suggesting limited upside, the recent 12.95% drop shows how quickly sentiment can swing when expectations get stretched in a still‑unprofitable, capital‑intensive business like Rivian’s.