Rivian Stock Could Plummet Over 20 Percent Amid Dimming Sales Forecast Analyst Warns
Rivian Automotive Inc. is facing a challenging outlook as industry analysts predict a significant drop in its stock value. Mizuho analyst Vijay Rakesh has issued a bearish stance on the company, revising the price target for Rivian’s shares from $14 to $10. This adjustment reflects a potential decline of over 20% from its recent closing price, which was approximately $13.
Impact of Expiring Tax Credits
The looming expiration of a crucial U.S. tax credit for electric vehicles (EVs) is expected to further complicate Rivian’s sales environment. Prior to the expiration, which occurred in September, consumers hurried to capitalize on incentives that facilitated the purchase and leasing of EVs.
Analyst Insights
Mizuho’s assessment underscores growing concerns about Rivian’s ability to maintain its market position. The expiration of tax incentives could limit consumer interest and purchasing power, leading to diminished sales forecasts for the company.
Key Takeaways
- Rivian’s stock price target reduced from $14 to $10 by analyst Vijay Rakesh.
- This forecast indicates a potential decline exceeding 20% from a recent closing price of $13.
- The expiration of crucial U.S. tax credits for EVs is expected to impact sales negatively.
- Consumer rush to take advantage of tax incentives may now be a thing of the past.
Investors and stakeholders should monitor developments closely, as Rivian navigates this increasingly difficult market landscape following the end of the tax credit program.
