Rivian Automotive, Inc. (NASDAQ: RIVN) faces cautious outlook from Morgan Stanley due to tech transition and policy changes challenging near-term demand. Deliveries declined 31% year-over-year in 4Q25, slightly beating estimates but falling below consensus. 2026 demand outlook remains cautious with the expiration of the EV tax credit and introduction of LiDAR for advanced autonomy.

The company produced and delivered 42,284 and 42,247 vehicles in line with guidance, with attention now on 4Q25 earnings and 2026 guidance. Analysts foresee a demand air-pocket in 2026 as customers wait for Rivian’s latest tech platform. Rivian is an automaker focused on electric vehicles, software, and services.

While Rivian offers potential, Morgan Stanley suggests other AI stocks may offer greater upside potential with less downside risk. Investors are advised to consider alternative AI stocks for investment opportunities. Disclosure: None.

Read more at Yahoo Finance: Analysts Warn of Potential Demand “Air-Pocket” for Rivian (RIVN) in 2026