Citigroup Retains Neutral Rating with $15.38 PT as Rivian Shares Fall 7%
RIVN•Citigroup maintains a Neutral rating with a $15.38 price target as Rivian shares plunged over 7% to about $15.28. Rivian faces a class-action suit over Level 3 autonomy claims while cutting hundreds of jobs and launching its midsize R2 platform targeting a 50% bill-of-materials cost reduction.
1. Citigroup Rating and Stock Movement
Citigroup maintained its Neutral rating and $15.38 price target for Rivian. The stock plunged over 7% to approximately $15.28, trading in a session range of $15.18 to $16.36.
2. Autonomy Lawsuit
Rivian faces a class-action lawsuit accusing it of misleading investors and customers about hands-free Level 3 autonomy capabilities, with claims spanning a five-year period.
3. R2 Launch and Cost Cuts
To improve profitability, Rivian announced hundreds of job cuts and is rolling out its midsize R2 platform, which aims for a 50% bill-of-materials cost reduction while software revenue growth supports margin expansion.
