Rivian Automotive (RIVN) is an electric vehicle company that markets its popular R1T and R1S models. The company also sells accessories such as field kits, tents, gear guard cables, snowboard and surfboard mounts, and more. Additionally, Rivian has a subscription-based service aimed at analyzing the products to improve the cost of ownership.

Rivian had a blockbuster debut on Wall Street back in November 2021, quickly reaching a valuation of $86 billion.

Since then, Rivian has faced countless challenges and volatility. The stock hit an all-time high of $172.01 just days after its listing but has faded over time due to issues like production delays and market pressure. At present, the stock has a market cap of roughly $13 billion and trades near $11. The stock is down 40% from its 52-week high set in December.

Rivian Impresses in Q4

Rivian posted its fourth-quarter results on Feb. 20. The EV company posted a loss of $744 million or $0.52 per adjusted share. This was well above analysts’ consensus estimate for a loss of $0.66. On the revenue side, the company generated a total of $1.73 billion, up 32% year-over-year and again outscoring Wall Street’s $1.43 billion estimate.

Rivian reported an adjusted EBITDA loss of $277 million against analysts’ estimate for a loss of $408 million. 

One of the big turning points for Rivian is consistent growth in revenue. The company has grown at a rate of 262% compounded annually over the last three years.

The company has provided an outlook for 2025 where it aims to deliver 48,500 vehicles at the midpoint with an adjusted EBITDA loss of $1.8 billion and capital expenditure of $1.65 billion.

Rivian to Struggle from Tariffs?

Bernstein analyst Daniel Roeska has reaffirmed his “Underperform” rating on the stock while placing a target of $6.10, reflecting downside potential of 47%. He cites tariff pressure and other financial complications as reasons for his low rating. At present, Rivian manufactures its vehicles in the U.S. but relies on imported batteries from South Korea and China.

Tariffs are expected to raise costs of batteries, leading Roeska to slash Rivian’s delivery guidance by 20% to 37,000 units. He anticipates an adjusted EBITDA loss of $2.2 billion, 17% below management’s forecast. 

Roeska anticipates the company might discontinue its lithium iron phosphate (LFP) batteries, revise its volume and EBITDA guidance, and look to further raise some fresh equity. The analyst also believes that the company may not break even in terms of gross profit until mid-2027. 

Analyst Ratings on Rivian

Over the last month, the analyst consensus rating has slid from “Moderate Buy” to “Hold.” The stock has a mean price target of $14.11, reflecting upside potential of 22% from current prices.

Rivian has been rated by 26 analysts and has received seven “Strong Buy” ratings, one “Moderate Buy” rating, 15 “Hold” ratings, one “Moderate Sell” rating, and two “Strong Sell” ratings.