On Tuesday, Rivian shares fell 1.6% following Wolfe Research’s decision to lower its rating from Peer Perform to Underperform. The stock traded in a range between $18.65 and $18.85, closing below the prior session’s $19.15 finish. Trading volume reached 24.6 million shares—28% below the 34.1 million average—highlighting muted liquidity as investors digested the altered outlook.

In its report, Wolfe Research projected that Rivian will post an EBITDA loss of $2.1 billion in 2026, wider than the Street’s consensus estimate of a $1.76 billion deficit. Free cash flow burn is expected to exceed $4 billion next year, driven by increased capital expenditures, higher operating costs and working-capital pressures. The firm also warned of a potential demand lag for the upcoming R2 model, which it forecasts will see the bulk of its deliveries concentrated in late 2026.

Chief Executive RJ Scaringe sold 17,450 shares at an average price of $19.55 on January 6, reducing his stake by 1.52% to 1,132,659 shares valued at roughly $22.1 million. Director Peter Krawiec disposed of 3,655 shares at $19.45 on December 15, cutting his holding by 11.15% to 29,122 shares worth about $566,000. Over the past three months, insiders have sold 155,054 shares for proceeds of $2.73 million, with total insider ownership now at 2.16%.

Rivian has initiated a recall of close to 20,000 R1T and R1S vehicles following identification of an outdated service procedure that can compromise rear toe link integrity. The remedy requires inspection and replacement of affected components at authorized dealers, and the company has allocated $50 million to cover parts and labor. This recall underscores potential operational disruptions and warranty expense increases during 2026.