Shares of Rivian Automotive (RIVN) are down after the EV maker reported a steep drop in vehicle deliveries for the second quarter. Indeed, the company delivered 10,661 vehicles in the quarter ending June 30, which was down 22.7% from the same period last year, though this result matched estimates from Visible Alpha. It is worth noting that demand for EVs is being affected by strong competition, high interest rates, and consumer preference for cheaper gas or hybrid cars, which often have lower upfront costs.
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Tariffs introduced by President Trump’s administration have also added to Rivian’s troubles by increasing manufacturing costs across the industry and forcing many automakers to rethink their supply chains. At the same time, Rivian’s production fell short of expectations. In fact, only 5,979 vehicles were built in Q2 compared to analyst estimates of 11,330, as the company prepares to launch updated versions of its R1T truck and R1S SUV for 2026. Despite these issues, Rivian maintained its 2025 delivery forecast of 40,000 to 46,000 vehicles.
Separately, on the financial front, Rivian received a $1 billion equity investment from Volkswagen Group (VWAGY) at an effective price of $19.42, which represents a 33% premium to the $14.56 30-day volume-weighted average stock price. The investment is part of the $5.8B agreement associated with the Rivian and Volkswagen Group technology joint venture.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 13 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $14.64 per share implies 10.8% upside potential.
