Deutsche downgrades Rivian on downside risk to 2024 outlook

Deutsche Bank downgraded Rivian Automotive to Hold from Buy with a price target of $19, down from $29. The analyst sees downside to the company’s 2024 volume and margin outlook. While the planned R2 unveil could help investor sentiment, there remains many other questions post the announcement including timing of capital needs, production ramp, and profitability, the analyst tells investors in a research note. The firm expects 2024 volume guidance of just 65,000 units from Rivian amid prolonged factory shutdowns and a slow ramp up. This could result in continued deep losses through Q3, which are unlikely to be offset by potential positive gross margins in Q4, contends Deutsche Bank.