Rivian Automotive, Inc. (RIVN) Down 6.0% — Is It Time to Part Ways?
Rivian Automotive, Inc. (RIVN) spent the session under pressure, sliding 6.02% to close at $19.43, retreating $1.24 from the prior close of $20.67. The stock has been losing ground after recently testing its 52-week high of $22.69 on Dec. 22, 2025, now sitting roughly 14% below that peak. This pullback keeps shares pinned in the lower half of their 52-week band between $10.36 and $22.69, reinforcing a picture of a name facing renewed headwinds after a short-lived push higher.
Trading activity also pointed to waning conviction. Session volume came in at 13.9 million shares, running well below the 90-day average of about 49.0 million. That lighter-than-usual turnover suggests the latest downswing is unfolding without the kind of strong participation that typically signals decisive institutional support. In the broader electric-vehicle and mobility space, several speculative peers such as XPeng Inc. (XPEV), QuantumScape Corporation (QS), Lucid Group, Inc. (LCID), The Goodyear Tire & Rubber Company (GT), and Kodiak AI, Inc. (KDK) have also experienced periods of sharp swings, but Rivian’s latest retreat places it firmly among the weaker price-action profiles in the group.
From a shorter-term perspective, the stock’s failure to hold above the $20 mark adds to the sense that momentum is sliding, with buyers stepping back as sellers lean on the tape. With shares now noticeably off their recent high and trading on subdued volume, the current trend skews negative, leaving Rivian’s price action looking vulnerable and still very much under pressure.
Why Rivian Automotive, Inc. Price is Moving Lower
Rivian’s recent pullback comes after a sharp run-up, leaving the stock vulnerable to profit-taking and heightened scrutiny of fundamentals. Shares have slid 9.06% over the past five sessions and dipped another 1.09% in the latest session, even as broader markets attempt a year-end “Santa Claus” rally. With no fresh catalysts such as new partnerships or earnings surprises, the market’s attention has shifted back to execution risks and sustained losses. A negative P/E ratio of -6.72 and EPS of -$3.12 underscore that Rivian remains firmly in loss-making territory, which can invite selling pressure when momentum cools.
The recent weakness is also being driven by concerns over how long Rivian can maintain its aggressive growth trajectory while narrowing steep losses. Quarterly revenue climbed from $1.30 billion to $1.56 billion, a strong 20% sequential increase and 78% year-over-year growth, yet profit margins remain deeply negative at around -61%. Investors are questioning whether production at roughly 13,000 vehicles per quarter and the Gen 2 platform’s ~20% material cost cuts will be enough to offset ongoing cash burn. Planned capacity expansion in Georgia to 400,000 units adds to long-term potential, but also highlights near-term capital intensity and execution risk at a time when the broader EV and auto components space — including peers like XPeng, Lucid, and QuantumScape — is under pressure. With sentiment fragile and expectations already elevated after a 48.83% year-to-date surge, caution is prevailing and the stock is facing renewed downside pressure.
What is the Rivian Automotive, Inc. Rating - Should I Sell?
Weiss Ratings assigns RIVN a D rating. Current recommendation is Sell. The stock was upgraded on 7/9/2024, but that upgrade only moved Rivian within our Sell category — it did not change the fundamental risk/reward profile. A D rating means Rivian has underperformed on a risk-adjusted basis compared with other stocks and remains a speculative, high-risk name in the Consumer Discretionary sector.
The most concerning issue is Rivian’s very weak profitability and efficiency. The company’s profit margin of -61.33% and a forward P/E of -6.63 align with a Very Weak Efficiency Index, signaling that management is still far from generating acceptable returns on capital. Even with rapid topline expansion — supported by a Good Growth Index and revenue growth of 78.26% — these gains have not translated into sustainable earnings or shareholder value.
Risk metrics also lean negative. The Weak Total Return Index shows that investors have not been adequately compensated for the risks they are taking, while the Weak Volatility Index points to an unfavorable balance between price swings and potential reward. The Good Solvency Index offers some reassurance about Rivian’s balance sheet, but this alone has not been enough to offset operating losses and poor stock performance.
Within its peer group, Rivian’s D rating places it in roughly the same troubled camp as XPeng Inc. (XPEV, D-) and The Goodyear Tire & Rubber Company (GT, D-), and only marginally ahead of Lucid Group, Inc. (LCID, E+). For investors, the overall profile remains cautionary: strong growth has not protected shareholders from losses, and the D rating signals that the downside risks still outweigh the potential upside.
About Rivian Automotive, Inc.
Rivian Automotive, Inc. is a U.S.-based electric vehicle manufacturer in the Consumer Discretionary sector, focused on the design and production of battery-electric trucks, sport-utility vehicles and commercial vans. Operating within the Automobiles and Components industry, the company targets the premium end of the electric pickup and SUV market through its R1T pickup and R1S SUV platforms, emphasizing off-road capability, high-performance drivetrains and adventure-oriented features. Rivian develops its own skateboard platform, integrating battery packs, drive units, suspension, thermal systems and controls into a single architecture that underpins multiple vehicle models, adding complexity and execution risk compared with manufacturers that outsource more components.
Beyond consumer vehicles, Rivian produces electric delivery vans for commercial fleet customers, positioning itself as a supplier of last-mile logistics solutions. The company also develops in-house software, including vehicle operating systems, over-the-air update capabilities and driver-assistance systems, which increases dependence on continuous software development and cybersecurity maintenance. Rivian promotes a vertically integrated approach spanning vehicle engineering, manufacturing, charging solutions and digital services. This strategy aims to control more of the value chain but also requires significant ongoing capital, disciplined execution and the ability to scale production efficiently in a highly competitive electric vehicle landscape dominated by larger, more established automakers.
Investor Outlook
With Rivian Automotive, Inc. (RIVN) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor how execution risks, capital needs and competitive pressures affect its path to profitability. Watch for sustained price stability at recent support levels, shifts in sentiment toward electric vehicle names in the broader Consumer Discretionary space and any improvements that could eventually lift its risk/reward profile. See full rankings of all D-rated Consumer Discretionary stocks inside the Weiss Stock Screener.
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