The recent fourth-quarter earnings report from electric-vehicle company Rivian Automotive has left investors reeling.

Double Downgrade from UBS Analyst

On Friday, UBS analyst Joe Spak made a significant move by downgrading Rivian shares from Buy to Sell, bypassing the typical one-notch cut seen on Wall Street. This decision was influenced by a rapidly changing landscape in the electric vehicle (EV) market.

Slowing Demand Growth and Revised Projections

Spak now predicts Rivian's 2025 deliveries to reach only 75,000 units, significantly lower than the Wall Street consensus of 95,000 units. With a revised price target of $8 per share, down from the previous $24, Rivian stock saw a 10.4% decline to $10.26 on Friday.

Analyst Sentiment and Price Targets

Further impacting investor confidence, J.P. Morgan analyst Ryan Brinkman also downgraded Rivian shares to Hold from Buy, setting a new price target at $11 per share. Currently, 57% of analysts rate Rivian stock as Buy, a decrease from almost 70% three months ago.

Looking Ahead

Despite these challenges, Rivian remains focused on production goals, aiming for approximately 57,000 units in 2024. The average analyst price target for Rivian stock stands at around $19.30, reflecting a shift from the previous average of nearly $25 per share before the earnings report.

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