New York, Feb 17, 2026, 13:21 EST — Regular session
- Rivian shares fell about 5% in afternoon trade after D.A. Davidson cut its rating to underperform
- The call lands days after Rivian’s post-earnings surge, with analysts split on the R2 ramp
- Traders are watching for fresh R2 details and what they mean for deliveries and cash burn
Rivian Automotive (RIVN.O) shares fell about 5% to $16.84 on Tuesday after D.A. Davidson downgraded the electric-vehicle maker, warning that meeting its R2 launch targets could require “the best mid-size EV launch since 2021” without tax credits or a broad dealer network. The stock is coming off a roughly 27% jump on Friday. (Investing.com Nigeria)
The pullback shows how quickly the trade has shifted back from “what’s next” to “what can they actually ship.” Rivian’s R2 is the hinge: it is supposed to move the company from a niche, higher-priced lineup to a wider market.
That matters now because the stock’s re-rating is being built almost entirely on execution in 2026. A missed quarter, a slower factory ramp, or softer demand would not take much to reopen the funding debate.
Rivian has pitched the smaller, lower-priced R2 as its growth engine and a direct challenger to Tesla’s best-selling Model Y, with the vehicle expected to start at about $45,000. Chief executive RJ Scaringe told Reuters that volumes for the R1T pickup, R1S SUV and delivery vans would stay largely flat versus 2025, when Rivian delivered 42,247 vehicles, leaving the heavy lifting to R2. Zacks Investment Research strategist Andrew Rocco said investors are “betting they can get the R2 up to scale,” but flagged production execution as the main hurdle. (Reuters)
Not everyone stepped back. Stifel reiterated its Buy rating and raised its price target — the level an analyst thinks a stock could reach — to $20 from $17, pointing to cost progress and stronger results in Rivian’s higher-margin software and services business. The broker also said Rivian expects an additional $2 billion tied to its Volkswagen joint venture, while warning that early R2 volumes could pressure margins before improving later in the year. (Investing)
The split on Wall Street is not subtle. One camp sees a cleaner cost base and a credible mass-market product. The other sees a high bar in a price-sensitive EV market.
But the downside case is easy to sketch. If the R2 ramp stumbles, Rivian could face a fresh round of questions over cash burn and whether it needs to raise more money on unattractive terms.
Investors will next focus on March 12, when Rivian said it will provide additional product and line-up details for the R2 — a date that could sharpen expectations on pricing, trims and the speed of the ramp into the second-quarter delivery start. (Sec)
