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 expert Andrew Percoco downgraded Rivian Automotive, Inc. (NASDAQ:RIVN) to Underweight from Equal Weight portion keeping the terms people astatine $12. The alteration came aft a displacement successful expert sum and arsenic portion of the firm’s broader 2026 outlook for autos and shared mobility. Morgan Stanley said it is taking a much cautious stance heading into adjacent year, expecting the electrical conveyance “winter” to past done 2026. This softer presumption of EVs is partially balanced by a somewhat much upbeat outlook for interior combustion and hybrid vehicles.

At its archetypal “Autonomy and AI Day” connected December 11, Rivian Automotive, Inc. (NASDAQ:RIVN) announced that it has built its ain customized chip, a caller car computer, and caller AI models that volition powerfulness self-driving features successful its aboriginal vehicles. The institution besides shared plans for the Autonomy+ subscription for its second-generation vehicles, acceptable to motorboat successful aboriginal 2026. The work volition tally connected Rivian’s caller Autonomy Processors and autonomy computers and volition turn successful capableness implicit time.

Autonomy+ volition outgo $2,500 upfront oregon $49.99 per month. For comparison, Tesla prices its FSD (Supervised) bundle astatine $8,000 upfront and $99 per month.

Rivian Automotive, Inc. (NASDAQ:RIVN) is nether increasing unit to amusement investors that its semipermanent maturation communicative is inactive intact. The institution is moving efficiently to grow its lawsuit base, adjacent arsenic US battery-electric conveyance income are slowing. In addition, intensified contention from Chinese EV makers is besides contributing to the situation.

Rivian Automotive, Inc. (NASDAQ:RIVN) builds and sells premium electrical escapade vehicles, focusing connected performance, utility, and technology.

While we admit the imaginable of RIVN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.