Rivian Automotive Inc. is facing a potentially challenging future as a key U.S. tax credit for electric vehicles expires. Vijay Rakesh, an analyst from Mizuho, has revised his outlook on Rivian by lowering the stock price target.
Price Target Adjustment
On Monday, Rakesh reduced the price target for Rivian’s stock (RIVN) to $10, down from $14. This new target suggests a decline of approximately 23% from the stock’s last closing price of nearly $13.
Impact of Tax Credit Expiration
The expiration of the tax credit that incentivized purchases and leases of electric vehicles is expected to negatively influence sales. Prior to the September deadline, many consumers rushed to purchase EVs to take advantage of these incentives.
Mizuho now indicates that the sales environment for Rivian may become more difficult without this financial assistance for consumers.
Market Implications
- Analyst Name: Vijay Rakesh
- Previous Price Target: $14
- New Price Target: $10
- Percentage Drop: 23%
- Last Close Price: ~$13
The potential decline in Rivian’s stock reflects broader concerns about the electric vehicle market’s sustainability in the absence of government incentives. Investors are advised to monitor these developments closely as the market adjusts to the new landscape.
