Rivian Faces Double Downgrade and Layoffs Amidst EV Market Challenges

UBS analysts downgraded Rivian's stock to sell from buy, citing weaker demand for EVs, limited profitability, and a likely substantial capital raise. They also slashed the price target to $8, one of the lowest recorded by FactSet. Rivian's recent weaker-than-expected guidance and larger-than-expected quarterly loss have spooked investors, while the company plans to unveil a cheaper EV in early March. The analysts highlighted concerns about the high pricing of Rivian's existing luxury EVs and the reliance on future products for growth, questioning the sustainability of the current strategy.