Analysts at Morgan Stanley assessed Rivian Automotive (NASDAQ:RIVN) in a note Wednesday, saying there is little evidence that the new product roadmap addresses the number one issue facing the company.
The firm maintained an Overweight rating and $14 per share price target on the stock following last week's product unveil, which they said reminded investors of the company's strong design chops.
However, analysts believe investors will need to see a few factors play out for the stock to stage a rebound.
"FY24 is an important year for RIVN to show meaningful progress on lowering the variable production cost to a level approaching the price they sell their products for," said the bank.
Analysts added: "The introduction of compelling new products to be made in the Normal, IL plant may potentially add layers of complexity to the company's mission of re-engineering the R1."
Furthermore, the bank feels that while investor and media feedback to the Laguna unveil has been pretty positive, the company could benefit from improved transparency around costs where analysts "see significant room for improvement."