Why Rivian Stock Is Crashing Today
Rivian Automotive (NASDAQ: RIVN) stock has kicked off 2024 in low gear, with its shares losing value steadily in recent days. This morning, the electric vehicle (EV) stock was trading 6% lower as of noon ET after an analyst downgraded the stock's price target by nearly 35% on a weak outlook for 2024.
This morning, Deutsche Bank analyst Emmanuel Rosner slashed Rivian stock's price target to $19 per share from $29 a share, according to The Fly. In other words, Rosner sees barely 11% upside in Rivian shares over the next 12 months from its Wednesday opening price.
Rosner sees risks to Rivian's volumes in 2024 given the slow ramp-up of production and prolonged factory shutdowns. The analyst believes the slowdown could hit Rivian's margins and bottom line hard and lead to big losses for the EV maker until the third quarter of 2024. Rosner further contends that Rivian could still hit a positive gross margin in Q4 as planned, but only if it executes flawlessly.
Source Fool.com
