Why Rivian Automotive Stock Is Moving Lower

Rivian Automotive, Inc. (NASDAQ:RIVN) shares are trading lower Wednesday after Deutsche Bank downgraded the stock from Buy to Hold and lowered its price target from $29 to $19.

The Details:

Deutsche Bank noted that its downgrade of Rivian is based in part on an expected volume guidance of only 65,000 units resulting from factory shutdowns and a slow ramp up which could result in heavy losses through the third quarter of 2024.

Deutsche Bank sees a potential boost in sentiment if Rivian begins showcasing R2 models in 2024, however it feels it is unlikely that potential positive gross margins in the fourth quarter would offset losses from the rest of the year.

According to data compiled by Kelly Blue Book and released last week, the Rivian R1S was the seventh top selling electric vehicle in the United States with 24,783 units sold.

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RIVN Price Action: According to Benzinga Pro, Rivian Automotive shares are down 4.88% at $16.95 at the time of publication.

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