What Happened?
Shares of electric vehicle manufacturer Rivian (NASDAQ: RIVN) jumped 7.2% in the morning session after it received multiple positive analyst actions, including a significant price target increase from Wedbush.
Wedbush analyst Dan Ives maintained an "Outperform" rating on the electric vehicle maker but raised the price target by over 56% to $25.00, signaling strong confidence. This move followed an upgrade from Baird, which boosted its rating to "Outperform." Baird's optimism was driven by the planned launch of Rivian's lower-priced R2 model, which was expected to broaden the company's customer base and support higher delivery volumes over time.
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What Is The Market Telling Us
Rivian’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 5.1% on the news that its competitor Ford announced a major pullback from its electric vehicle (EV) strategy, which amplified investor concerns about waning consumer demand and the financial health of the EV market.
Ford revealed it was ending production of its all-electric F-150 Lightning, a direct competitor to Rivian's R1T, and shifting investment toward more efficient gasoline and hybrid vehicles. This move was attributed to financial losses and a changing market reality. The broader sentiment for EVs was also dampened when the European Union announced it would step back from a plan to ban emissions from new vehicles by 2035.
Rivian is up 67.1% since the beginning of the year, and at $22.15 per share, has set a new 52-week high. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $219.86.
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