Rivian stock fell 11.2% over the week after Wolfe Research cut its rating to underperform with a $16 price target, citing sustained EBITDA losses and concerns over reduced EV demand. UBS followed with a sell rating and a $15 target, warning that near-term benefits from Rivian’s new self-driving technologies are unlikely to materialize until late 2026. In contrast, Piper Sandler raised its target to $20, reflecting mixed Wall Street sentiment and highlighting the stock’s heightened sensitivity to analyst opinions.

Shares of Rivian tumbled over 7% on Wednesday, marking the lowest closing level since mid-December, and at one point slid nearly 10% intraday. As of 3:21 p.m. ET on the drop day, Rivian was down 7.9%, underscoring a technical reversal that erased a significant portion of the nearly 50% gain achieved in the fourth quarter. Average daily trading volume has climbed to 47 million shares, with recent sessions trading over 52 million, indicating elevated investor activity amid the pullback.

Investors remain focused on Rivian’s rollout of its next-generation R2 SUV and the debut of its in-house autonomy processor unveiled at the company’s December event. CEO R.J. Scaringe detailed plans to scale AI-driven driving software throughout 2026, but analysts warn that expectations may be overly optimistic given Rivian’s current negative gross margin of 159.4% and ongoing production challenges. With a market capitalization of $23 billion, the company must demonstrate tangible progress on both vehicle deliveries and software integration to justify its long-term valuation.