Rivian Stock Drops Following Bank of America Downgrade to 'Underperform'

Analysts cite weaker demand, increased competition, and policy risks as key concerns for the electric vehicle maker's future performance.

Bank of America downgraded Rivian's stock from 'neutral' to 'underperform' and reduced its price target from $13 to $10, reflecting a 23% downside from its previous close.
The downgrade follows concerns about Rivian's softer-than-expected 2025 outlook and challenges in achieving profitability despite its first quarterly gross profit last week.
Analysts highlighted growing competition in the electric SUV and crossover market, with new models expected from Lucid, Ford, Chevrolet, and others by 2026/2027.
Potential policy changes under the Trump administration, including a possible review of Rivian's $6.6 billion Department of Energy loan, were flagged as a significant risk.
Rivian's stock has declined over 8% today but remains nearly 20% higher over the past year, showing mixed investor sentiment.