Rivian Stock Set To Open In Red? Software Glitch Clouds EV Momentum Built On Tesla’s Weak Quarter

• A botched software rollout is threatening to derail Rivian’s recent gains, fueled by Tesla’s weak delivery performance in Q1. 
• Last week, Rivian extended its rally with back-to-back weekly gains and closed a third straight session in the green on Friday.
•  Retail sentiment has remained bearish on the stock with low message volumes on Stocktwits.

Rivian Automotive (RIVN) shares are set to open lower on Monday after the EV maker halted a major software rollout that disrupted vehicle functions, including phone-based access. This comes just as the stock was riding a shift in investor sentiment following Tesla’s weak first-quarter deliveries.

Last week, Rivian extended its rally with back-to-back weekly gains and closed a third straight session in the green on Friday. Rivian shares slipped by about 2% overnight on Sunday after the company halted its 2026.07 software update over the weekend. 

Reports indicate that the botched software update disabled phone apps and key fobs on Gen 1 vehicles. And in some cases, it left owners unable to unlock or start their cars except with the backup key cards. The update also affected the saved information for radio stations, elevation numbers, and owner contact information. 

Rivian’s Software Glitch

The third-party tracking platform Rovian Roamer showed the rollout accelerating from 2,187 vehicles on Thursday to 3,555 by Friday, before dropping sharply to 4 on Saturday: indicating a complete halt.

The fleet data from the Rivian Roamer suggested a split deployment on Saturday, with cars divided almost equally: 47% were updated to the 2026.07 version, while 53% were still on the older version.

This update was one of the largest updates released by the company. It included Universal Hands-Free driver assistance on over 3.5 million miles of North American roads, an Apple Watch companion app, Rivian Digital Key with UWB support, the RAD Tuner custom drive mode for Quad-Motor vehicles, an Unreal Engine 5.5 upgrade for the vehicle’s 3D renderings, and the Kick Turn low-speed rotation feature.

The latest update was released almost seven weeks ago. The 2026.07 update, released by Rivian on February 19, was called “Cold Snap.”  

Tesla’s Q1 Delivery Miss, A Boon For Rivian?

This setback comes just as Rivian was emerging as a relative bright spot in the EV space. 

Tesla missed analysts’ expectations of first-quarter vehicle deliveries. The EV automaker could only deliver 358,023 vehicles compared to Wall Street’s expectations of 370,000. On the other hand, Rivian reported a beat on vehicle deliveries, reaffirming its guidance of 62,000 to 67,000 vehicles for this year. 

Some analysts, including Stifel, noted a ‘significant sector shift’ from Tesla to Rivian based on Tesla’s Q1 performance and reevaluation of risks from Tesla’s high multiple-growth bet and Rivian’s defined operational execution. The firm also noted that if crude oil energy prices remained high, even after the Iran conflict ended, it would most likely fuel EV sales higher. 

 

The Wall Street View On RIVN

Of the 26 analysts, nine have recommended a ‘Hold’ rating, eight have recommended a ‘Buy’ rating, four have recommended a ‘Strong Buy’, three have recommended a ‘Sell’ rating, and two have recommended a ‘Strong Sell’ for the Rivian stock. 

Last week, Tigress Financial has maintained a target price of $25.00 per share for Rivian. The 12-month average target for Rivian is $18.16 implying a 17% premium on the current levels of the stock price. 

As per The Fly, DA Davidson upgraded Rivian from Underperform to Neutral on April 1. The firm stated that, “valuation for the upgrade following the stock's recent selloff. Much of the recent pullback is related to a mixed-at-best investor reaction to the pricing of early R2 trims, which is 55% higher than expected for some consumers.” DA Davidson kept the target price unchanged at $14.

How Did Retail Traders React?

On Stocktwits, the retail sentiment surrounding the stock has remained ‘Bearish’ with ‘Low’ message volumes.

Rivian shares are down about 21% year to date. 

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