Rivian Automotive Inc. is facing significant challenges following the expiration of a vital U.S. tax credit for electric vehicles (EVs). Analyst Vijay Rakesh from Mizuho has expressed a bearish stance on the company’s stock. He has adjusted Rivian’s price target to $10, a reduction from the previous $14.
Impact of Tax Credit Expiration
The new price target indicates a potential drop of approximately 23% from Rivian’s last closing price of around $13. This adjustment comes in light of dwindling consumer incentives, which previously spurred EV purchases and leases.
Sales Outlook Deteriorates
Following the September expiration of these tax credits, the sales environment for Rivian appears to be deteriorating. With the removal of financial incentives, the company may struggle to attract buyers in a highly competitive market.
- Analyst: Vijay Rakesh, Mizuho
- Previous Price Target: $14
- New Price Target: $10
- Price Drop Percentage: 23%
- Last Closing Price: $13
- Tax Credit Expiration: September 2025
As the market adapts to these changes, Rivian must navigate a challenging sales landscape if it hopes to maintain growth amidst declining consumer incentives. The future of Rivian’s stock will largely depend on how effectively the company can respond to this evolving environment.
