Rivian Shares (NASDAQ:RIVN): Here’s What Investors Need to Know

Shares of EV (electric vehicle) company Rivian (NASDAQ: RIVN) fell more than 8% on Monday, April 15. Although there was no company-specific news, Tesla’s (NASDAQ:TSLA) decision to lower the monthly subscription fee for its Full Self-Driving (FSD) package and reported layoffs reflected weak demand trends in the broader EV industry. These developments suggest that EV makers may continue to face challenges in the near term, which subsequently put downward pressure on EV stocks, including Rivian.

In particular, Rivian shares are down more than 64% year-to-date as higher interest rates hurt demand. Additionally, Rivian’s management said during the Q4 conference call that the company’s order has slowed significantly over time. This was partly due to order cancellations fueled by the poor macroeconomic environment.

Despite its challenges, Ford Motor Company (NYSE:F) recently lowered the price of its F-150 Lightning pickup trucks. In particular, the ongoing price wars initiated by major players to push standards pose a serious challenge to EV startups like Rivian.

UBS Analyst Upgrades RIVN Shares

While Rivian shares lost a lot of value, UBS analyst Joseph Spak he upgraded his rating to Hold from Sell on April 15. Meanwhile, the average analyst price target of $9 implies a potential 7.14% upside from current levels.

Spak sees the risk/reward profile of Rivian stock balancing around the current market price. Additionally, the analyst noted that demand for Rivian vehicles remained strong despite industry-wide weakness.

Is Rivian a Buy, Sell or Hold?

Near-term demand makes analysts cautiously optimistic about RIVN stock. RIVN stock has an average consensus rating of Buy based on 12 Buy, eight Hold and three Sell recommendations. Analysts’ average price target on RIVN stock is $16.91, implying a potential of 101.31% from current levels.

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