Wolfe Downgrades Rivian (RIVN) on Cash Burn, Sees Delayed AI and Autonomy Catalysts

Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the Must-Watch Stock on Wall Street. On January 12, Wolfe Research analyst Emmanuel Rosner downgraded the stock from Peerperform to Underperform, setting a price target of $16.00. Firm analysts see higher cash burn, rising losses, and limited near-term catalysts for the stock.

Rosner noted how the near-term and long-term fundamental setup for the stock has deteriorated, but that there is excitement around RIVN’s Autonomy platform which has led to a surge in shares.

However, the firm estimates an EBITDA loss of $2.1 billion, wider than Street estimates. Free cash flow burn is also seen exceeding $4 billion, as capital/operating and working capital headwinds intensify. Analysts further flagged demand for its R2 model, with volumes likely skewed to Q426.

“Meanwhile, and unlike TSLA, we do not expect many Autonomy / AI-related potential catalysts, with key launches set for late-2026.”

Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.

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.

READ NEXT: 11 AI Stocks on the Market’s Radar and 10 Trending AI Stocks on Wall Street

Disclosure: None.