Rivian Automotive (NASDAQ:RIVN) Shares Down 9.6% – Here’s What Happened

Rivian Automotive, Inc. (NASDAQ:RIVN)’s stock price fell 9.6% on Friday . The stock traded as low as $15.15 and last traded at $15.22. Approximately 54,104,938 shares changed hands during trading, an increase of 71% from the average session volume of 31,696,482 shares. The stock had previously closed at $16.83.

Key Stories Impacting Rivian Automotive

Here are the key news stories impacting Rivian Automotive this week:

• Positive Sentiment: Rivian reported second-quarter revenue of $1.66 billion, up 27.2% year over year and above the approximately $1.52 billion analyst estimate. Its adjusted loss of $0.47 per share was narrower than the expected $0.65–$0.66 loss. Rivian beats quarterly revenue estimates as R2 launch, software business gain traction
• Positive Sentiment: The company began customer deliveries of its lower-priced R2 SUV, said demand and conversion rates are exceeding internal expectations, and maintained its 65,000-to-70,000-vehicle delivery target while raising aspects of its full-year outlook. Management views R2 as important to future volume and profitability.
• Positive Sentiment: Rivian reduced its 2026 spending plans, narrowed its expected annual loss, and highlighted growth in its software business, including benefits from its Volkswagen partnership. Rivian reduces 2026 spending plans, narrows earnings guidance
• Positive Sentiment: Needham reaffirmed a Buy rating with a $23 price target, while TD Cowen raised its target to $21 and kept a Buy rating. Elevated call-option activity also suggests increased speculative interest.
• Neutral Sentiment: Analyst opinion remains divided. Royal Bank of Canada raised its target to $16 with a Sector Perform rating, Wells Fargo lifted its target to $16 with Equal Weight, and Morgan Stanley raised its target to $14 while retaining an Underweight rating.
• Negative Sentiment: The earnings beat did not resolve concerns about automotive margins, cash usage, and Rivian’s continuing large losses. The company remains unprofitable, and management acknowledged that Chinese EV manufacturers have significant cost and capital advantages.
• Negative Sentiment: Investors appear to be taking profits or reassessing valuation after the results, with broader EV-sector weakness adding pressure. The market is likely demanding evidence that the R2 ramp can translate into sustainable margins rather than merely higher deliveries.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Wall Street Zen upgraded shares of Rivian Automotive from a “strong sell” rating to a “sell” rating in a research report on Sunday, May 10th. UBS Group lifted their target price on shares of Rivian Automotive from $16.00 to $17.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. BNP Paribas Exane lifted their target price on shares of Rivian Automotive from $22.00 to $24.00 and gave the company an “outperform” rating in a research note on Wednesday, July 8th. Wells Fargo & Company upped their target price on shares of Rivian Automotive from $15.00 to $16.00 and gave the stock an “equal weight” rating in a report on Friday. Finally, Canaccord Genuity Group reiterated a “buy” rating and issued a $22.00 price target on shares of Rivian Automotive in a research note on Monday, April 6th. Thirteen analysts have rated the stock with a Buy rating, eight have given a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, Rivian Automotive currently has a consensus rating of “Hold” and an average price target of $18.95.

Rivian Automotive Stock Performance

The firm’s 50-day moving average price is $16.56 and its 200-day moving average price is $15.89. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.10 and a quick ratio of 1.64. The stock has a market cap of $20.72 billion, a P/E ratio of -5.21 and a beta of 1.60.

Rivian Automotive (NASDAQ:RIVN) last issued its earnings results on Thursday, April 30th. The electric vehicle automaker reported ($0.55) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.60) by $0.05. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.37 billion. Rivian Automotive had a negative net margin of 63.62% and a negative return on equity of 75.65%. Rivian Automotive’s revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.48) earnings per share. Sell-side analysts expect that Rivian Automotive, Inc. will post -3.06 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Claire Mcdonough sold 8,023 shares of the firm’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $16.00, for a total transaction of $128,368.00. Following the completion of the transaction, the chief financial officer owned 887,007 shares in the company, valued at $14,192,112. This trade represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 20,000 shares of Rivian Automotive stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $20.00, for a total value of $400,000.00. Following the completion of the sale, the director directly owned 110,000 shares in the company, valued at $2,200,000. This trade represents a 15.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 68,385 shares of company stock worth $1,125,094 in the last 90 days. 1.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rivian Automotive

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. increased its stake in Rivian Automotive by 113.6% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker’s stock worth $26,000 after acquiring an additional 1,000 shares during the last quarter. Core Wealth Advisors LLC purchased a new stake in shares of Rivian Automotive during the 4th quarter worth approximately $27,000. SOA Wealth Advisors LLC. boosted its position in shares of Rivian Automotive by 894.2% during the 4th quarter. SOA Wealth Advisors LLC. now owns 1,551 shares of the electric vehicle automaker’s stock valued at $31,000 after acquiring an additional 1,395 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Rivian Automotive during the 3rd quarter valued at approximately $31,000. Finally, Zions Bancorporation National Association UT purchased a new position in shares of Rivian Automotive in the fourth quarter valued at $33,000. 66.25% of the stock is owned by institutional investors.

About Rivian Automotive

Rivian Automotive, Inc is an American automotive technology company specializing in the design, development and manufacture of electric vehicles. The company is best known for its all-electric R1 platform, which underpins the R1T pickup truck and R1S sport utility vehicle. In addition to consumer products, Rivian has secured a significant commercial contract to produce electric delivery vans for a leading e-commerce provider, underscoring its capability to serve both retail and fleet customers.

Founded in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, Rivian has grown from a research-focused startup into a publicly traded corporation.