Rivian Automotive, Inc. (RIVN) Down 8.2% — Should I Exit Before Things Get Worse?
Rivian Automotive, Inc. (RIVN) was under clear pressure in the latest session, retreating 8.2% to $17.31 and losing ground after a prior close of $18.85. That move translates to the stock shedding $1.54 in a single day, a sharp slide that leaves shares firmly on the back foot. Trading activity has also been relatively muted, with roughly 19.1 million shares changing hands versus a 90-day average closer to 46.9 million, suggesting this latest downswing is occurring on lighter-than-usual volume rather than a surge of trading interest.
From a longer-term perspective, the stock remains well below its 52-week peak of $22.69 set on Dec. 22, 2025, highlighting how far it has retreated from recent highs. At current levels, RIVN is trading roughly $5.38 under that high-water mark, reinforcing the theme of a stock that has been sliding rather than advancing. While shares are still above the 52-week low of $10.36, the recent pullback keeps the price action skewed toward the lower half of its one-year range and paints a picture of ongoing headwinds rather than a sustained recovery.
The weakness in Rivian’s stock also comes against a backdrop of broader pressure across many electric-vehicle and related names. Sector peers such as XPeng Inc. (XPEV), QuantumScape Corporation (QS), Lucid Group, Inc. (LCID), The Goodyear Tire & Rubber Company (GT), and Adient plc (ADNT) have likewise seen bouts of volatility and periods of retreat, underscoring how this segment has been struggling to hold gains and has frequently been under pressure in recent trading.
Why Rivian Automotive, Inc. Price is Moving Lower
Rivian’s recent pullback toward the high-teens is largely tied to mounting fundamental and regulatory headwinds that are tempering the optimism from its late-2025 rally. The stock surged more than 40% into year-end on excitement around Autonomy Day announcements and the Volkswagen partnership, but that momentum has faded as investors refocus on execution risk. A recent safety recall and the removal of federal EV tax credits have introduced fresh concerns about demand durability and cost burden just as the company prepares for a capital-intensive scale-up. Elevated trading activity — with premarket volume more than double the 90-day average and intraday swings across the $18–$19.50 band — underscores growing risk aversion and profit-taking after the prior run-up.
Under the surface, Rivian’s financial profile is also contributing to the pressure. Quarterly revenue rose from $1.30 billion to $1.56 billion, a solid 20% sequential increase and part of a robust 78%-plus annual growth trend. However, the market is increasingly focused on the depth of losses and the path to profitability, with a profit margin near -61% signaling that each vehicle sold is still heavily dilutive to the bottom line. This gap between strong top-line expansion and deeply negative earnings is weighing on sentiment, particularly in a tougher EV funding and demand environment already challenging peers like XPeng, QuantumScape, or Lucid. With 2026 framed as a “make-or-break” year — hinging on the R2 launch, software monetization, and European expansion — caution is growing that any stumble on volumes, pricing, or recalls could further pressure the shares.
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 even after that move, the overall risk/reward profile remains unfavorable. A D rating signals that Rivian Automotive, Inc. has underperformed relative to other opportunities with comparable risk and still carries substantial downside risk for shareholders.
The most concerning issue is Rivian’s profitability. Despite revenue growth of 78.26%, the company continues to post deep losses, with a profit margin of -61.33%. This is consistent with the Very Weak Efficiency Index, which points to poor returns on capital and limited operating leverage. In other words, even rapid top-line expansion has not translated into sustainable progress toward profitability, and investors have not been rewarded for taking that risk, as seen in the Weak Total Return Index.
On the positive side, the Good Growth Index and Good Solvency Index show that Rivian is expanding its business and has a balance sheet that currently supports its obligations. However, these strengths have not been enough to offset the combination of weak efficiency, unfavorable total returns, and the Weak Volatility Index, which indicates a pattern of unstable performance that can punish investors during market stress or company-specific setbacks.
Within the Consumer Discretionary space, Rivian’s D rating places it among other high-risk names such as XPeng Inc. (XPEV, D-) and The Goodyear Tire & Rubber Company (GT, D-), and only slightly above Lucid Group, Inc. (LCID, E+). For investors, this cluster of low-rated peers reinforces the need for caution: the entire segment carries elevated risk, and Rivian is no exception.
About Rivian Automotive, Inc.
Rivian Automotive, Inc. is an electric vehicle manufacturer that operates in the Consumer Discretionary sector within the Automobiles and Components industry. Founded in 2009 and based in Irvine, California, the company focuses on designing, developing, manufacturing, and selling battery electric vehicles and related accessories. Its consumer lineup centers on two flagship models: the R1T, a two-row, five-passenger pickup truck, and the R1S, a three-row, seven-passenger sport utility vehicle. Both products target the higher-priced adventure and lifestyle segment rather than the broader mass-market category, naturally limiting their potential customer base and intensifying competitive pressure from more diversified automakers.
Beyond vehicles, Rivian attempts to differentiate itself through an integrated technology and services ecosystem, though execution risks remain significant. The company provides software and services that include remarketing, vehicle repair and maintenance, and vehicle electrical architecture and software development services. Rivian also designs, develops, manufactures, and operates the Rivian Adventure Network of Direct Current fast chargers, while offering access to Combined Charging Standard infrastructure. In the commercial segment, Rivian promotes its Rivian Commercial Van platform for Electric Delivery Vans, developed in collaboration with Amazon.com, Inc., which creates reliance on a concentrated customer relationship. The firm additionally markets FleetOS, a proprietary, end-to-end centralized fleet management subscription platform, but this offering competes in a crowded, rapidly evolving fleet software space. Rivian sells directly to consumers and commercial clients, requiring substantial ongoing investments in sales, service, and charging infrastructure to support its vertically integrated model.
Investor Outlook
With Rivian Automotive, Inc. (RIVN) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether operational execution and demand trends can improve enough to alter its risk/reward profile. Watch for shifts in the broader consumer discretionary environment, competitive pressures in EV adoption, and any rating changes that might signal a more durable turnaround. See full rankings of all D-rated Consumer Discretionary stocks inside the Weiss Stock Screener.
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