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Key Stats for Rivian Stock
- Price Change for Rivian stock: -7%
- Current Share Price: $11.30
- 52-Week High: $17
- RIVN Stock Price Target: $14.80
What Happened?
Rivian Automotive (RIVN) stock dropped 7% following the company’s disappointing second-quarter earnings report. The electric vehicle manufacturer reported an adjusted loss per share of $0.80, worse than the analysts’ average estimate of $0.64 per share.
The earnings miss was driven by multiple headwinds, including supply chain disruption from China’s curbs on rare earth metal exports, which sharply increased material costs for EV production.
Additionally, Rivian delivered 10,661 vehicles in the second quarter, marking a 22% decline from the same period last year, as Rivian limited production to prepare for its 2026 model year launch.
Perhaps most concerning for investors, Rivian raised its adjusted core loss guidance for the full year to $2 billion to $2.25 billion, up from the previously forecast range of $1.7 billion to $1.9 billion.
Rivian largely blamed the tapering value of U.S. regulatory credits, as President Trump’s elimination of penalties for automakers not meeting fuel economy standards has drastically reduced demand for these credits.
See analysts’ growth forecasts and price targets for Rivian (It’s free!) >>>
Volkswagen’s Increased Investment
One of the biggest surprises following Rivian’s Q2 report was Volkswagen AG’s significant increase in its Rivian ownership. The German automaker boosted its stake by 51.5 million shares, bringing its total to nearly $1.8 billion, or 12.34% of Rivian’s outstanding shares.
This move suggests growing confidence from Volkswagen in Rivian’s long-term potential, especially as the two companies deepen their strategic partnership. The increased stake represents a 54% jump in share count held and now makes Volkswagen Rivian’s second-largest shareholder after Amazon.
Volkswagen’s move comes just weeks after the two companies announced a $5 billion joint venture focused on developing next-generation EV software and platforms, which could potentially be a lifeline for both firms as they navigate a hyper-competitive EV market.
See Rivian’s top shareholders and recent insider transactions with TIKR (It’s free!) >>>
What the Market Is Telling Us About RIVN Stock
The market’s reaction to RIVN stock reflects growing concerns about Rivian’s path to profitability amid multiple policy and supply chain headwinds.
Wall Street analysts maintain a consensus “Hold” rating with a median one-year price target of $14.76, representing potential upside of over 25% from current levels. However, RIVN stock continues to trade 90% below its post-IPO high of $180.
While Rivian maintains a strong cash position of $4.81 billion and expects the $7,500 federal EV tax credit expiration at the end of September to drive a surge in third-quarter sales, investors remain cautious about the company’s ability to scale efficiently.
The upcoming launch of the R2 SUV in 2026, priced at $45,000, represents a crucial test for the company’s mass-market ambitions and cost reduction efforts.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
