On Monday, Rivian Automotive (RIVN) saw its shares downgraded to Equal-Weight from Overweight by Barclays, with the stock price target also lowered to $16 from $25 per share. Analysts based their downgrade on three factors: the company’s technology not being enough to avoid increased signs of demand pressure amid a broader EV slowdown, demand softness implying risk from pricing and slower volume growth, and recent data points suggesting softened demand for R1S.
Barclays also sees an ongoing need for capital raises at Rivian due to weak demand, which presents a potential pricing risk. Both points reinforce that RIVN is likely to miss its 2024 target of reaching gross margin profitability. Furthermore, with ongoing capital needs given preparation for the high volume R2 in 2026, Barclays concludes that there will be future pressure.