RIVN Stock Falls -17% On Analyst Downgrades Over Cash Burn Fears
Rivian Automotive (RIVN) – a manufacturer of electric trucks, SUVs, and delivery vans – hit 7-day losing streak, with cumulative losses over this period amounting to a -17%. The company market cap has crashed by about $4.1 Bil over the last 7 days, and currently stands at $20 Bil.
The stock has YTD (year-to-date) return of 15.4% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Slide?
[1] Dual Analyst Downgrades to ‘Sell’
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- UBS downgrade to ‘Sell’ ($15 PT)
- Wolfe Research to ‘Underperform’ ($16 PT)
- Impact: Accelerated stock decline, Heightened investor concern
[2] Weak 2025 Delivery Report
- Full-year deliveries fell 18% vs 2024
- Q4 deliveries declined 31% year-over-year
- Impact: Concerns over softening EV demand, Negative year-over-year comparison
Opportunity or Trap?
Below is our take on valuation.
There are only a couple of things to fear in RIVN stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced (For details, see Buy or Sell RIVN).
But here is the real interesting point.
You are reading about this -17% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for RIVN stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | RIVN | S&P 500 |
|---|---|---|
| 1D | -2.3% | -0.1% |
| 7D (Current Streak) | -16.9% | 0.3% |
| 1M (21D) | -6.9% | 2.1% |
| 3M (63D) | 29.1% | 4.7% |
| YTD 2026 | -15.4% | 1.4% |
| 2025 | 48.2% | 16.4% |
| 2024 | -43.3% | 23.3% |
| 2023 | 27.3% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: RIVN Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 102 S&P constituents with 3 days or more of consecutive gains and 49 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 38 | 16 |
| 4D | 17 | 11 |
| 5D | 22 | 12 |
| 6D | 0 | 5 |
| 7D or more | 25 | 5 |
| Total >=3 D | 102 | 49 |
Key Financials for Rivian Automotive (RIVN)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $4.4 Bil | $5.0 Bil |
| Operating Income | $-5.7 Bil | $-4.7 Bil |
| Net Income | $-5.4 Bil | $-4.7 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $1.3 Bil | $1.6 Bil |
| Operating Income | $-1.1 Bil | $-983.0 Mil |
| Net Income | $-1.1 Bil | $-1.2 Bil |
The losing streak RIVN stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.