Rivian (RIVN) Faces Downgrade With $12 Target Intact at Morgan Stanley

Rivian Automotive, Inc. (NASDAQ:RIVN) is included among the 13 Best Blue Chip Stocks to Buy Under $50.

On December 8, Morgan Stanley analyst Andrew Percoco downgraded Rivian Automotive, Inc. (NASDAQ:RIVN) to Underweight from Equal Weight while keeping the price target at $12. The change came after a shift in analyst coverage and as part of the firm’s broader 2026 outlook for autos and shared mobility. Morgan Stanley said it is taking a more cautious stance heading into next year, expecting the electric vehicle “winter” to last through 2026. This softer view of EVs is partly balanced by a somewhat more upbeat outlook for internal combustion and hybrid vehicles.

At its first “Autonomy and AI Day” on December 11, Rivian Automotive, Inc. (NASDAQ:RIVN) announced that it has built its own custom chip, a new car computer, and fresh AI models that will power self-driving features in its future vehicles. The company also shared plans for the Autonomy+ subscription for its second-generation vehicles, set to launch in early 2026. The service will run on Rivian’s new Autonomy Processors and autonomy computers and will grow in capability over time.

Autonomy+ will cost $2,500 upfront or $49.99 per month. For comparison, Tesla prices its FSD (Supervised) package at $8,000 upfront and $99 per month.

Rivian Automotive, Inc. (NASDAQ:RIVN) is under growing pressure to show investors that its long-term growth story is still intact. The company is working efficiently to expand its customer base, even as US battery-electric vehicle sales are slowing. In addition, intensified competition from Chinese EV makers is also contributing to the situation.

Rivian Automotive, Inc. (NASDAQ:RIVN) builds and sells premium electric adventure vehicles, focusing on performance, utility, and technology.

While we acknowledge the potential of RIVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.