Rivian (RIVN) Stock Drops As Analysts Turn Cautious After Recall

Rivian Automotive Inc (NASDAQ:RIVN) shares are down on Wednesday as the company faces challenges following a recent recall and shifts in analyst sentiment. UBS earlier downgraded the stock from Neutral to Sell despite raising its price target from $13 to $15.

The stock’s decline also comes as broader markets are trading lower, with the S&P 500 down 0.95% and the Nasdaq-100 down 1.58%. Here’s what investors need to know.

• Rivian Automotive stock is showing notable weakness. Why is RIVN stock dropping?

Rivian’s Recall: A Game Changer For Investors?

Rivian recently announced a recall of nearly 20,000 vehicles due to a defect that may increase the risk of a crash, which has raised concerns among investors.

Additionally, Wolfe Research recently downgraded the stock from peer perform to underperform, while Piper Sandler maintained a neutral rating but raised the price target from $14 to $20.

The company also shared preliminary fourth-quarter results, reporting the production of almost 11,000 vehicles and deliveries of nearly 10,000. For the full year, Rivian produced 42,284 vehicles and delivered 42,247, aligning with their expectations.

The Mixed Signals Behind Rivian’s Stock Movement

The stock is currently trading 13% below its 20-day simple moving average (SMA) and 1.7% below its 50-day SMA, indicating short-term weakness. Over the past 12 months, shares have increased by 29.72% and are positioned closer to their 52-week highs than lows.

The RSI is at 49.24, which is considered neutral territory, suggesting there is no immediate overbought or oversold condition. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $18.00
• Key Support: $15.50

Earnings Outlook: A Mixed Forecast Ahead

Investors are looking ahead to the next earnings report on February 12.

• EPS Estimate: Loss of 84 cents (Down from a loss of 46 cents YoY)
• Revenue Estimate: $1.27 billion (Down from $1.73 billion YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $16.25. Recent analyst moves include:

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Rivian Automotive, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 87.58) — Stock is outperforming the broader market.

The Verdict: Rivian Automotive’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup, with a Momentum (87.58) that confirms the strong trend.

Top ETF Exposure

• First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN): 7.91% Weight
• iShares Self-Driving EV and Tech ETF (NYSE:IDRV): 4.40% Weight
• VanEck Low Carbon Energy ETF (NYSE:SMOG): 3.47% Weight

Significance: Because RIVN carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

RIVN Price Action: Rivian Automotive shares were down 8.81% at $17.19 at the time of publication on Wednesday, according to Benzinga Pro data.

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