Rivian Stock Under Pressure in 2024
2024 continues to prove tumultuous for the electric vehicle (EV) sector, with Rivian Automotive (RIVN) experiencing a sharp decline near record lows. U.S. behemoth Tesla (TSLA) remains the laggard among S&P 500 Index stocks, further exacerbating a difficult year for EV investments.
The Rise and Fall of Rivian Stock
In late 2021, Rivian’s market cap soared to over $150 billion, surpassing industry stalwarts like Ford Motor Company (F) and General Motors (GM). However, the euphoria surrounding EV companies has since dissipated, with bankruptcy fears and guidance cuts haunting the once-promising industry.
Challenges Facing Rivian Stock in 2024
Rivian’s downward spiral in 2024 can be attributed to a host of factors. The company’s conservative production estimates, coupled with dwindling demand for electric vehicles and intensifying price wars, have contributed to its woes. Additionally, the investor sentiment towards loss-making ventures has shifted, favoring stability over risky prospects.
The Forecast for Rivian Stock
Analysts paint a bleak picture for Rivian, with UBS setting a Street-low target price of $9, suggesting a further 13.5% decline from current levels. While optimism lingers among some analysts, the overall consensus remains cautious, hinting at a potential rebound with a target price of $19.30.
Rivian’s Strategy and Outlook
Efforts to rejuvenate Rivian’s prospects include the unveiling of new, more affordable models and a delay in the construction of its Georgia plant to conserve cash. The company’s focus now lies on ramping up production, reducing costs, and eventually turning a profit – a challenging task that mirrors Elon Musk’s transformative journey with Tesla.