Wolfe Downgrades Rivian (RIVN) on Cash Burn, Sees Delayed AI and Autonomy Catalysts

Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the Must-Watch Stock on Wall Street. On January 12, Wolfe Research analyst Emmanuel Rosner downgraded the stock from Peerperform to Underperform, setting a price target of $16.00. Firm analysts see higher cash burn, rising losses, and limited near-term catalysts for the stock.

Rosner noted how the near-term and long-term fundamental setup for the stock has deteriorated, but that there is excitement around RIVN’s Autonomy platform which has led to a surge in shares.

However, the firm estimates an EBITDA loss of $2.1 billion, wider than Street estimates. Free cash flow burn is also seen exceeding $4 billion, as capital/operating and working capital headwinds intensify. Analysts further flagged demand for its R2 model, with volumes likely skewed to Q426.

“Meanwhile, and unlike TSLA, we do not expect many Autonomy / AI-related potential catalysts, with key launches set for late-2026.”

Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.

READ NEXT: 11 AI Stocks on the Market’s Radar and 10 Trending AI Stocks on Wall Street

Disclosure: None.