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Rivian Automotive (Nasdaq: Riven) fell in pre-market trading on Monday after Barclay downgraded the electric vehicle stock to equal weight after rating it overweight.The company pointed to a slowdown in the broader EV market, demand pressure and increased supply. Constraints.
Analyst Dan Levy said Rivian (RIVN) offers superior products and technology, but weak demand could pose margin risks and the company's sales growth could slow. It warned that it would be difficult for the company to achieve positive profit margins and cash flow. For investors, Rivian's (RIVN) need to continue raising capital is seen as limiting stock price gains.
“The impact of weak demand is significant. This not only means that the outlook for sales volumes is difficult, but also poses potential price risks. On both counts, RIVN will reach gross profit margins This confirms that it is highly likely that we will not be able to achieve our 2024 goal,” Levy updated. . “Furthermore, given the preparations for high-volume R2 in 2026, there will be continued funding needs and future pressures are expected,” he added.
Barclays lowered Rivian Automotive's (RIVN) price target from $16 to $9.
Rivian (RIVN) stock falls 3.06% In pre-market trading, the stock traded at $16.17, compared to a 52-week trading range of $11.68 to $28.06.
Rivian Automotive (RIVN) is scheduled to report earnings on February 21st. Analysts expect Rivian (RIVN) to report an EPS loss of $1.32 on revenue of $1.26 billion. Rivian (RIVN) has posted lower-than-expected losses over the past seven quarters.
