Wall Street Analyst Cuts Rivian Stock Rating Due to Softening EV Market
Tuesday, 26 March 2024, 08:15
Why Rivian Stock Rating Was Downgraded:
A Mizuho Financial Group analyst downgraded Rivian to 'neutral' from 'buy' based on concerns over near-term consumer demand and funding costs. The broader EV market conditions influenced this decision.
Rivian's Growth Prospects:
- Rising Sales Growth: The analyst predicts a 15% year-over-year growth in EV sales in 2024, down from the previous forecast of 25%.
- Market Rebound Expectation: New lower-cost models could lead to market growth rebound, potentially benefiting Rivian in 2026 with the R2 model.
Rivian's Resilience and Challenges:
Rivian's CEO and team have demonstrated strong production capabilities, delivering over 50,000 vehicles in the previous year. Despite facing market challenges, the company’s $10.4 billion cash reserve offers stability for future ventures like the R2 launch.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.