Rivian Stock Downgraded: Analysts Move Cautious on EV Demand

Rivian's stock (NASDAQ: RIVN) is trading 1% lower in the pre-market, as holders face renewed apprehension, with an analyst cut on the electric vehicle manufacturer coming after a difficult month in the markets. The price target cut cites concerns over softening demand and evolving market dynamics, and comes after RIVN had already pulled back 14.5% in the past month of trading.

Mizuho analyst Vijay Rakesh downgraded Rivian to “Underperform” from “Neutral,” simultaneously slashing the price target from $14 to $10. The firm attributes this decision primarily to anticipated deceleration in electric vehicle demand following the expiration of Inflation Reduction Act credits.

This expiration is expected to remove a key incentive for consumers, potentially impacting sales volume across the EV sector, including Rivian.

Furthermore, Mizuho projects headwinds for Rivian in 2026, stemming from potentially weaker auto sales in North America and increased risk exposure to the Chinese market.

In response, the firm has revised its 2026 delivery forecast for Rivian downwards, from 68,000 units to 60,000 units, falling below the consensus estimate of 72,000 units.

A Broader Trend of Caution

This downgrade is not an isolated event but part of a broader trend of analysts lowering their expectations for Rivian.

Earlier in August, Mizuho had already lowered its price target from $13 to $12, maintaining a “Neutral” rating after Rivian's June quarter report revealed in-line revenue but a year-over-year decline in deliveries of 23%. This decline occurred ahead of planned new model launches in the second half of 2025, adding pressure on the company to deliver stronger results.

UBS analyst Joseph Spak echoed this sentiment, also reducing the price target to $12 while retaining a “Neutral” rating.

Wedbush analyst Daniel Ives, while maintaining an “Outperform” rating, lowered the price target from $18 to $16, signalling a more tempered outlook despite remaining positive overall.

Guggenheim analyst Ronald Jewsikow downgraded Rivian from “Buy” to “Neutral” in July, further illustrating the shifting analyst confidence.

RIVN Price Targets

The convergence of negative revisions underscores the challenges Rivian faces in a rapidly evolving automotive sector. The expiration of tax credits, potential softening of EV demand, and broader macroeconomic uncertainties contribute to the cautious outlook for the company's stock performance in the near- to mid-term.

The market's reaction to these downgrades suggests that investors are increasingly factoring in these risks as they re-evaluate Rivian's long-term potential.