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Investing.com -- Cantor Fitzgerald downgraded Rivian Automotive (NASDAQ:RIVN) to Neutral from Overweight given a weaker-than-expected 2025 delivery outlook and macroeconomic challenges, including new tariffs and the likely removal of the $7,500 EV tax credit.
The firm noted that Rivian's 2025 vehicle delivery guidance of 46,000-51,000 units fell short of its prior estimate of 59,402 and the market consensus of 55,190. The company delivered 51,579 vehicles in 2024.
Cantor highlighted Rivian’s first positive gross margin in the fourth quarter, driven largely by $299 million in regulatory credit sales. The firm also noted that Rivian expects to achieve a “modest gross profit” for 2025.
Though brokerage had optimism on the stock. “We continue to believe that RIVN benefits from a differentiated product offering, a material commercial partnership with Amazon (NASDAQ:AMZN), and a strategic joint venture with Volkswagen (ETR:VOWG_p),” analyst said.
While Rivian reaffirmed that its R2 vehicle line remains on track for production in the first half of 2026, the company expects fewer Electric Delivery Van (EDV) deliveries to Amazon in 2025 compared to the prior year.
Cantor raised its price target on Rivian to $15 from $13 but lowered its 2025 and 2026 delivery estimates. The firm cited risks including supply-chain disruptions, manufacturing constraints, and slower-than-expected customer adoption.
“We are becoming more conservative in the near term, driven by lower delivery expectations and due to macro conditions including the implementation of incremental tariffs and the likely removal of the $7,500 EV Tax Credit,” analyst added.
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