‘Sell’ Rivian Stock: Morgan Stanley Sounds the Alarm on RIVN Ahead of R2 Launch

FomoAnxiety · 2026-03-10T11:47:08+00:00

Rivian is set to unveil its R2 vehicle on March 12, targeting a broader market. However, Morgan Stanley's Andrew Percoco maintains an Underweight rating, citing production challenges and a $12 price target, indicating potential declines for the stock.

FomoAnxiety

2026-03-10 11:47:08

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Electric vehicle maker Rivian Automotive RIVN +3.25% ▲ is set to unveil the launch edition of its R2 vehicle on March 12. The smaller and lower-priced model could help Rivian reach more buyers and increase production in the years ahead. However, top Morgan Stanley analyst Andrew Percoco remains cautious on the stock.

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Percoco kept an Underweight rating on the stock with a $12 price target, implying 23% downside from current levels. While he said the R2 launch is important for Rivian, he warned the company still faces big hurdles as it tries to ramp up production and move toward profits.

Morgan Stanley’s Take on Rivian

According to the report, the upcoming R2 vehicle is an important step for Rivian as it tries to scale its auto business. Management said the model could help drive higher production and improve operating leverage across the company.

Morgan Stanley also highlighted Rivian’s push to build more of its technology in-house. The company is developing its own chip, called RAP1, which is expected to power advanced driver-assist and future self-driving features in the R2 platform.

Even so, the firm prefers to remain on the sidelines for now. Morgan Stanley expects 2026 to be a transition year for Rivian as it works toward positive gross margins and ramps production of the new platform. Investors will likely watch closely how the R2 launch affects production scale, demand, and Rivian’s path toward profitability.

Is RIVN Stock a Buy or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on eight Buys, eight Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $17.32 per share implies 9.14% upside potential.

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