UBS downgraded Rivian to ‘Sell’ from ‘Neutral’, citing “elevated expectations” from the RJ Scaringe-led EV maker.
- UBS analysts said in the note that Rivian’s shares are “prone to sentiment swings” and that the stock has run up 15% since the company’s Autonomy and AI Day in December.
- The firm added that it believes most of the news around Rivian’s AI-related developments is out.
- It also stated that expectations may be too high for the company’s upcoming electric sports utility vehicle (SUV), the R2.
Rivian Automotive Inc. (RIVN) shares were down nearly 4% in Wednesday’s pre-market trade following a downgrade from the analysts at UBS. According to TheFly, UBS downgraded Rivian to ‘Sell’ from ‘Neutral’, citing “elevated expectations” from the RJ Scaringe-led EV maker.
However, the firm hiked its price target for RIVN stock to $15 from $13, implying a downside of more than 20% from the stock’s Tuesday closing price.
Retail sentiment on Stocktwits around Rivian Automotive was in the ‘bearish’ territory, with the stock being among the top trending tickers on the platform at the time of writing.
What Did UBS Say?
UBS analysts said in the note that Rivian’s shares are “prone to sentiment swings” and that the stock has run up 15% since the company’s Autonomy and AI Day in December.
The firm added that it believes most of the news about Rivian’s AI-related developments has already been released. It also stated that expectations may be too high for the company’s upcoming electric sports utility vehicle (SUV), the R2.
The Rivian R2 is expected to launch in the first half of 2026, with prices starting at $45,000.
Analysts at Wolfe Research also downgraded Rivian to ‘Underperform’ from ‘Peer Perform’, stating in a note on Monday that the risk-to-reward ratio appears unfavorable at the stock’s current levels.
Wolfe Research has a $16 price target for the RIVN stock.
Rivian’s Declining Sales
Rivian’s sales in the fourth quarter (Q4) of 2025, as well as the full year, have been on a downward path. According to Cox Automotive’s latest report, Rivian’s sales in the U.S. in Q4 stood at 9,745 vehicles, down by over 31% year-on-year.
For the full year 2025, Rivian sold 42,098 vehicles, down 18% compared to 2024’s sales of 51,442 vehicles. Rivian’s market share for 2025 stood at 3.3%.
Rivian rival Tesla’s sales in Q4 stood at 138,000 units, down 15% YoY, while 2025 sales stood at 589,160 vehicles, down 7% over 2024’s tally of 633,762 units.
RIVN stock is down 4% year-to-date, but up 40% over the past 12 months.
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