Rivian Automotive initiated with an Underperform at Bernstein

Bernstein initiated coverage of Rivian Automotive (RIVN) with an Underperform rating and $6.10 price target The firm says that while it sees the company succeeding in its plan to reach over 500,000 cars by 2030, “this is not enough to create financial success for shareholders.” Rivian will only achieve mid-teens gross margins by the end of the decade, which makes it “challenging to deliver meaningful value to shareholders,” the analyst tells investors in a research note. Bernstein expects the company will still burn $14B to reach breakeven. Rivian in post-market trading is down 1% to $12.55.