From Barchart: 2025-02-24 12:31:00

Rivian Automotive (NASDAQ:RIVN) saw a 7% drop in shares after BofA Securities downgraded the company to Underperform, citing a weak 2025 outlook and uncertainty with Volkswagen partnership.

Analysts expressed concerns over profitability, competition, and policy shifts affecting EV incentives, leading to the downgrade despite Rivian being a promising EV startup.

Rivian is progressing towards sustainable gross margins, but slower EV demand and complexities with the VW partnership could hinder its earnings trajectory and market share.

Uncertainty looms over federal EV incentives, with fears of rollback under the Trump administration posing a risk to Rivian’s $6.6 billion DOE loan secured during the Biden administration.

BofA foresees near-term challenges for Rivian amid softening demand and regulatory uncertainties, prompting a more cautious outlook and the recent downgrade.



Read more at Barchart:: Rivian Downgraded to Underperform at BofA, Shares …