Rivian Faces Tough Times, But Analyst Sees Bright Future Ahead

LOS ANGELES, CA – Rivian Automotive Inc. is navigating a turbulent landscape as demand for electric vehicles (EVs) wanes, compounded by economic challenges, fierce competition, and rising operational costs. Nonetheless, Canaccord Genuity analyst George Gianarikas believes the company still has untapped potential that investors should consider.

Rivian, known for its innovative electric trucks and SUVs, saw a significant decline in Q1 deliveries, reporting only 8,640 units. This marks a 39.1% decrease from the previous quarter’s 14,183 units and a 36.4% drop compared to 1Q24.

In light of this downturn, Gianarikas remains optimistic. He stated, “As other OEMs retreat from commitments — either by design or compelled by demand issues — we believe Rivian has a unique, timely opportunity to push forward, pull ahead of the non-Tesla pack, and establish itself as the next American auto icon.”

Highlighting the broader context, Gianarikas discussed the omission of affordable EVs under $50,000 in the U.S. market, which has hindered EV adoption compared to markets like China and Europe. Notably, Tesla’s Model 3 and Model Y are currently leaders in this segment.

“It’s frustrating,” Gianarikas emphasized. “It feels like an enormous missed opportunity to lead… in a strategically vital future industry.” He underscored the need for a robust player beyond Tesla to foster competition and innovation in the American EV market.

Despite the bleak sales figures, Rivian’s management remains committed, reaffirming a full-year 2025 delivery forecast of 46,000 to 51,000 vehicles. Gianarikas noted, “The rubber will/should hit the road with the R2,” referring to the upcoming mid-size electric SUV set to debut in the first half of next year. “The price is right. As are the features. As are the aesthetics,” he added.

Currently, Gianarikas rates Rivian’s stock (RIVN) as a Buy with a target price of $23, suggesting an impressive upside potential of nearly 100%. However, market consensus is more cautious, with a Hold rating based on 13 Holds, 6 Buys, and 3 Sells. The stock is currently priced at $14.09, indicating an average price target that offers a one-year upside of about 26%.

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