Why Investors Are Pumping the Brakes on Rivian Stock This Week
Key Points
Rivian received two analyst downgrades this week.
Opinions about which direction Rivian stock is headed vary.
Rivian stock has the potential to climb higher in 2026 and in the years beyond.
- 10 stocks we like better than Rivian Automotive ›
It hasn't been a very encouraging start to the new year for Rivian (NASDAQ: RIVN) stock. Before this week began, shares of the electric vehicle (EV) manufacturer had dipped by more than 2%. The downward trend in Rivian's stock price is continuing this week as investors wrestle with analysts' bearish outlooks.
According to data provided by S&P Global Market Intelligence, Rivian shares are down 11.2% from the end of last Friday's trading session through today's market close.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Rivian.
Analysts are turning a cold shoulder to Rivian stock this week
Beginning the week on an inauspicious note, Rivian stock received a downgrade to underperform from peer perform (essentially a neutral outlook) from Wolfe Research on Monday, as well as a bearish price target of $16. According to thefly.com, Wolfe Research based its downgrade and lower price target on the fact that Rivian continues to report losses on an earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, as well as concerns about reduced EV demand at the time of the company's launch of its R2 model.
Based on Rivian's shares closing at $19.22 on Friday, Wolfe Research's price target implies an almost 17% downside.
Revealing a similarly pessimistic view, UBS downgraded Rivian stock to sell from neutral. Although it raised its price target to $15 from $13, it still implies Rivian stock is bound to slip from its current level.
Has the time passed for parking Rivian stock in your portfolio?
While bearish views on Rivian stock may be disconcerting for potential investors, it's important to recognize that not all analysts are down on the stock right now. On Jan. 8, for example, Piper Sandler hiked its price target to $20 from $14.
While opinions are split about where Rivian stock is headed, there's certainly the potential for Rivian stock to accelerate higher -- not only in 2026 but in the years ahead. It's therefore important for investors to do their due diligence before deciding where to buy Rivian stock.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $477,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,686!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 15, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
