Bank of America (BAC) has downgraded the stock of Rivian Automotive (RIVN) to a Sell-equivalent rating, citing mounting risks for the electric vehicle maker.
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John Murphy, a top five-star rated analyst at Bank of America Securities, lowered his rating on RIVN stock to “underperform” from a Hold-equivalent “neutral” recommendation previously. He also cut his price target on the shares to $10 from $13, which is 23% lower than where the stock currently trades.
“RIVN remains one of the most viable among the startup EV OEMs and is making progress towards sustainably positive gross margins. However, the 2025 outlook was softer than we had expected,” wrote Murphy in a note to clients.
Weak Outlook
The downgrade comes days after Rivian delivered strong financial results for the final quarter of 2024, but offered up a weak outlook for the year ahead, sending the stock lower as a result. In the last five trading sessions, RIVN stock has declined 13%.
Murphy said competition in the electric vehicle market is increasing, with a slew of new products set to enter the space in 2026 and 2027. Coupled with Rivian’s slower-than-expected ramp-up of its more affordable R2 electric vehicle, the automaker’s long-term volume trajectory is vulnerable, wrote Murphy.
The analyst also expects Rivian to get hit by U.S. President Donald Trump’s hostile view of electric vehicles and his administration’s focus on cutting costs.
Is RIVN Stock a Buy?
The stock of Rivian Automotive has a consensus Hold rating among 17 Wall Street analysts. That rating is based on five Buy, 10 Hold, and two Sell recommendations issued in the last three months. The average RIVN price target of $14.69 implies 21.96% upside from current levels.
