A Jefferies analyst has downgraded Rivian Automotive's stock from Buy to Hold amid concerns of soft demand and a challenging financial outlook. Despite the company implementing cost-cutting measures, Rivian faces a significant decrease in deliveries and has posted substantial losses. In the latest quarterly report, Rivian revealed a net loss of $545 million while only delivering 8,640 vehicles in the quarter. This poor performance has caused the stock price to drop over 90% from its initial high of $179. The company also reduced its delivery forecast for 2025, compounding investor concerns about its market viability.
The analyst downgraded Rivian from Buy to Hold due to soft demand, despite recent cost cuts helping maintain a slightly more optimistic outlook.
Rivian's stock has plummeted over 90% from its peak of $179 in November 2021, highlighting its struggle with low sales and significant losses.
While Rivian reported a gross profit of $206 million, the overall picture remains bleak with a net loss of $545 million and weak vehicle delivery numbers.
Management's commentary on exceeding demo drives failed to convince investors, as only 8,640 vehicles were delivered, showing a disconnect between interest and actual sales.
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