Rivian's Price-Target Lift Fails To Excite Retail Traders Amid Trump-Driven Uncertainty

Shares of Rivian Automotive Inc fell over 3% on Wednesday morning, hitting their lowest intraday levels since early January. 

The decline came despite Barclays analyst Dan Levy raising the firm's price target for Rivian to $14 from $13, representing a modest 9% upside.

Levy maintained an ‘Equal Weight’ rating as part of its fourth-quarter (Q4) earnings preview for the autos and mobility sector.

Barclays continues to favor automakers over suppliers but warns of continued challenges for the U.S. auto industry in 2025, including heightened competition from China's EV sector, shifting customer dynamics, and slower EV adoption outside China. 

"The setup for U.S. autos in 2025 is further volatility, with a continued air of uncertainty," Levy noted.

On Stocktwits, retail sentiment for Rivian turned 'bearish' as message volume ticked up. Investors were divided, reflecting mixed views on Rivian's prospects.

Optimists highlighted Rivian's recent $6.6 billion Department of Energy loan finalized under the Biden administration, Volkswagen's investment in the company, and Rivian's achievement of production targets in the previous quarter. 

One user noted that Rivian's status as a U.S.-based automaker could align with Donald Trump's "America First" policies.

Skeptics, however, questioned the rationale behind federal support for a "luxury EV truck maker who has already raised $16B+ and still loses $40k per vehicle."

Rivian's stock has a short interest of 14.2%, according to Koyfin data.

Shares of the EV company have lost more than 21% over the past year.

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