Analyst Warns Rivian Stock May Plummet Over 20 Percent Amid Bleak Sales Forecast
The future of Rivian Automotive Inc. appears uncertain following a recently issued warning from Mizuho analyst Vijay Rakesh. His revised outlook points to significant challenges ahead for the electric vehicle manufacturer.
Impact of Tax Credit Expiration on Rivian
In a recent analysis, Rakesh downgraded Rivian’s stock price target from $14 to $10. This adjustment reflects a substantial 23% decline from Rivian’s last closing price of approximately $13.
Sales Forecast and Market Conditions
The expiration of a crucial U.S. tax credit for electric vehicles has raised concerns about Rivian’s sales prospects. Prior to the expiration in September, there was a surge in consumer purchases and leases of EVs driven by the incentive. However, with this boost now gone, the current sales environment may become more challenging for Rivian.
- Analyst: Vijay Rakesh, Mizuho
- Previous price target: $14
- New price target: $10
- Decline from last close: 23%
- Last closing price: ~$13
- Expiration of tax credit: September 2025
The outlook for Rivian highlights the volatility in the electric vehicle market, especially as key incentives fade. Investors and consumers alike will be watching closely for developments as the situation unfolds.
