Rivian Shares Surge Most in a Day, Yet Analysts Downgrade to Sell

Rivian Automotive's stock surged more than 26% last Friday, marking its best single-day performance ever, after the company reported earnings that significantly beat expectations and as market optimism grew around its upcoming midsize electric SUV, the R2. Priced lower than Rivian’s current models and slated for launch in the second quarter, the R2 is seen as a potential "turning point" for the company amid a sluggish EV market. However, Michael Shlisky, an analyst at D.A. Davidson, remains cautious, arguing that Rivian’s outlook appears overly optimistic. He downgraded the stock from Neutral to “Underperform” and lowered his price target from $15 to $14. Despite heightened investor enthusiasm, analysts are warning of potential risks ahead.