Why Rivian Stock Plunged Nearly 10% Today
Shares of Rivian Automotive (NASDAQ: RIVN) plunged 9.7% shortly after 10 a.m. ET today, sinking to their lowest price so far this year. At least one analyst turned cautious about the electric vehicle (EV) maker's prospects after its weak outlook for 2025.
Analysts from Bank of America downgraded Rivian stock's rating to underperform and cut its price target from $13 per share to $10 a share. The EV stock was hovering around the day's low of $11.71 per share, as of this writing.
Although analysts at Bank of America believe that Rivian is still "one of the most viable" EV start-ups, they're worried about risks "piling up." To begin, Rivian's outlook for 2025 fell short of expectations. Meanwhile, Rivian's partnership with Volkswagen Group has made it difficult to forecast earnings for some years even as the global EV market is slowing down and competition is rising.
Source Fool.com
