Analyst warns Rivian stock may plummet over 20 percent amid worsening sales outlook
Rivian Automotive Inc. is facing significant challenges that may lead to a sharp decline in its stock price. According to Mizuho analyst Vijay Rakesh, the company is at risk due to the expiration of vital U.S. tax credits for electric vehicles.
Impact of Tax Credit Expiration on Rivian
On October 20, 2025, Rakesh revised his price target for Rivian’s stock (RIVN) from $14 to $10. This new price target suggests a potential drop of approximately 23% from its recent closing price of nearly $13.
Sales Outlook Deteriorates
Prior to the expiration of the tax credits in September, there was a surge in consumer purchases and leases of electric vehicles as buyers sought to benefit from incentives. However, Mizuho warns that the current sales environment for Rivian may now become more challenging.
Key Facts
- Analyst: Vijay Rakesh from Mizuho
- Revised Price Target: $10 (previously $14)
- Projected Decline: 23% from the last close of $13
- Tax Credit Expiration: Happened in September 2025
As Rivian navigates these hurdles, investors will need to keep a close watch on the company’s performance amid evolving market conditions. The end of tax credits may significantly reshape the competitive landscape for electric vehicles.
