Why Rivian Stock Plunged Nearly 10% Today

Core Viewpoint - Rivian Automotive's stock has experienced a significant decline due to a weak outlook for 2025, leading to cautious sentiments among analysts [1][3]. Financial Performance - Rivian produced and delivered 49,476 and 51,579 units in the previous year, but expects to deliver only 46,000 to 51,000 EVs in 2025 [4]. - The company reported its first-ever quarterly gross profit of $170 million in Q4, attributed to lower supply chain costs and improved production efficiencies [7]. Analyst Ratings and Price Targets - Bank of America downgraded Rivian's stock rating to underperform and reduced its price target from$13 to $10 per share [2]. - Needham raised Rivian's price target from$14 to $17 per share, while Cantor Fitzgerald downgraded the stock but increased its price objective to$15 per share [6]. Partnerships and Future Products - Rivian extended its partnership with Volkswagen Group, forming a $5.8 billion joint venture to focus on new products, including the R2 and R3 SUVs [5]. - The R2 midsize SUV is expected to launch in the first half of 2026, while the R3 will be Rivian's smallest SUV to date [5]. Market Conditions and Risks - Analysts express concerns about rising competition in the global EV market and the challenges in forecasting earnings due to the partnership with Volkswagen [3]. - Lower delivery expectations indicate weak demand, and the upcoming product launch is still a year away, raising concerns about future performance [8].