Rivian Stock May Plunge Over 20% Amid Declining Sales Forecast, Analyst Warns
Rivian Automotive Inc. faces significant challenges ahead, according to recent analysis by equity research firm Mizuho. An important U.S. tax credit for electric vehicles (EVs) has expired, and this development is likely to impact Rivian’s sales negatively.
Analyst’s Warning on Rivian Stock
Vijay Rakesh, an analyst at Mizuho, has revised his outlook on Rivian’s stock. He lowered the price target for Rivian’s shares (RIVN) from $14 to $10, a reduction of approximately 23%. This new target sits beneath the stock’s recent closing price of around $13.
Impact of Tax Credit Expiration
The expiration of the EV tax credits in September created a rush among consumers to purchase or lease electric vehicles to benefit from the incentives. With this incentive now gone, analysts believe the sales landscape for companies like Rivian will become increasingly challenging.
Summary of Key Points
- Stock Ticker: RIVN
- Previous Price Target: $14
- New Price Target: $10
- Price Target Reduction: 23%
- Recent Closing Price: Approximately $13
- Tax Credit Expiration: September 2025
These developments may indicate a period of volatility for Rivian as they navigate a more difficult selling environment without the tax incentives that previously supported demand. Investors should monitor this situation closely as Rivian adjusts its strategies in response to these market changes.
