JPMorgan lowers Rivian stock price target to $9 on wider losses

Investing.com - JPMorgan has reduced its price target on Rivian Automotive Inc (NASDAQ:RIVN) to $9.00 from $10.00 while maintaining an Underweight rating following the electric vehicle maker’s second-quarter earnings report. According to InvestingPro data, the stock currently trades at $12.15 with a market capitalization of $14.55 billion, showing significant volatility with a beta of 1.81.

The company reported second-quarter revenue of $1,303 million, exceeding Bloomberg consensus estimates of $1,283 million, but posted a larger-than-expected EBITDA loss of $667 million compared to consensus expectations of $493 million. InvestingPro analysis reveals the company’s trailing twelve-month net loss stands at $3.85 billion, with six analysts recently revising their earnings expectations downward.

Rivian’s automotive gross margin deteriorated significantly to -36% in the second quarter, far worse than JPMorgan’s projected -11%, resulting in a combined automotive and regulatory credit gross profit loss of $335 million.

Regulatory credit revenue plummeted to just $3 million versus JPMorgan’s estimate of $107 million due to recent legislation that removed penalties for non-compliance with EPA greenhouse gas and NHTSA fuel economy regulations, eliminating other automakers’ need to purchase credits from electric vehicle manufacturers.

The company has warned investors it is likely to generate an even larger full-year EBITDA loss than previously anticipated, citing operational inefficiencies and the earlier-than-expected phase-out of various EV subsidies.

In other recent news, Rivian Automotive Inc. reported its second-quarter earnings for 2025, showing stable revenue figures but a wider-than-expected loss per share. The company posted a consolidated revenue of $1.3 billion, aligning with forecasts, while its earnings per share (EPS) registered a loss of $0.97, missing the anticipated loss of $0.66. Additionally, Rivian’s adjusted EBITDA was reported at -$667 million, falling short of consensus estimates of -$493 million. This discrepancy was attributed to reduced regulatory credit revenue and higher vehicle cost of goods sold.

Goldman Sachs maintained its Neutral rating on Rivian, keeping a price target of $12.00 following these results. The firm’s analysis highlights the challenges Rivian faces in terms of cost management despite stable revenue figures. These recent developments provide investors with insights into Rivian’s financial performance and the ongoing assessment by analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.