Tag: us automotive industry news

Rivian Automotive (RIVN) is looking to challenge Tesla (TSLA), Ford (F) and General Motors (GM) with its adventure-styled electric vehicles. RIVN shares surged 40% in December 2023 but have come back to earth to begin 2024, falling more than 50%.

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Rivian stock was handed a price hike on March 15 after shares jumped nearly 13% on positive sentiment around the EV startup’s R2 and R3 vehicle reveal event. However, questions remain whether the company can bring its new product line to market without help amid waning EV demand.

UBS raised its price target on Rivian stock to 9, up from its previous 8. However, UBS maintained a sell rating on the shares. The firm noted that after the company’s March 7 product launch the “narrative around Rivian has changed.”

UBS added that revealing new products diverts attention from weaker demand for the older R1 vehicle line and that Rivian’s decision to pause construction on its new Georgia plant extends its cash runway. However, the firm still believes Rivian needs additional capital to bring these products to market.

Before its product launch, Jefferies Group initiated coverage of Rivian stock with a buy rating and 16 price target.

The Rivian Reveal