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Analysts cut Rivian price targets amid tariff concerns
Baird drops Rivian’s price target to $14 while Bernstein slashes to $6.10. Rising costs + tariff pressure weigh on RIVN before Q1 earnings.
Analysts have cut Rivian price targets (PT) amid concerns over President Trump’s tariffs.
Baird is the latest investment firm to cut its Rivian price target. Baird analysts slashed Rivian’s PT from $16 to $14 while maintaining a Neutral rating ahead of the electric vehicle (EV) maker’s Q1 2025 earnings. Baird’s downgrade reflects caution in the sustainable energy and mobility sectors through late 2025.
Rivian reported producing 14,611 vehicles and delivering 8,640 in the first quarter at its Normal, Illinois plant. The company reaffirmed its full-year delivery guidance of “46,000 to 51,000” units, holding steady despite headwinds.
Baird’s adjustment aligns with broader market uncertainties impacting Rivian’s outlook. Based on GuruFocus, the firm joins 29 analysts setting an average one-year price target of $14.54 for Rivian, with estimates ranging from a high of $23.00 to a low of $6.10.
Bernstein maintained its Underperform rating for Rivian, giving the EV automaker a $6.10 price target. The firm’s forecast suggests Rivian could drop 47% from Friday’s $11.47 close. Bernstein’s Rivian prediction cites rising tariff pressures and financial challenges, particularly with tariffs on imported batteries set to increase in May.
“We expect Rivian to discontinue its Lithium Iron Phosphate (LFP) variants, downgrade volume, and EBIT guidance, and be forced to consider raising fresh equity,” analysts led by Daniel Roeska wrote.
Bernstein slashed Rivian’s 2025 delivery forecast to 37,000 units, 20% below the automaker’s guidance midpoint. It also projects a negative $2.2 billion adjusted EBITDA for Rivian in Q1 2025. Analysts also flagged risks to Rivian’s gross profit breakeven goal, which is tied to Volkswagen’s planned $1 billion equity investment.
RBC Capital also trimmed its price target for Rivian to $10, anticipating a Q1 sales uptick from tariff-driven demand but warning that earnings may not fully capture trade impacts.
Rivian’s Q1 earnings, scheduled for May 6 after market close, will shed light on its ability to navigate tariffs and financial pressures. While the EV maker maintains its production goals, analysts signal a bumpy road ahead as costs rise and market dynamics shift. Rivian’s focus on scaling remains critical, but tariff burdens and equity needs could test its resilience in a competitive EV landscape.
News
Tesla rolls out xAI’s Grok to vehicles across Europe
The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain.
Tesla is rolling out Grok to vehicles in Europe. The feature will initially launch in nine European territories.
In a post on X, the official Tesla Europe, Middle East & Africa account confirmed that Grok is coming to Teslas in Europe. The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain, and additional markets are expected to be added later.
Grok allows drivers to ask questions using real-time information and interact hands-free while driving. According to Tesla’s support documentation, Grok can also initiate navigation commands, enabling users to search for destinations, discover points of interest, and adjust routes without touching the touchscreen, as per the feature’s official webpage.
The system offers selectable personalities, ranging from “Storyteller” to “Unhinged,” and is activated either through the App Launcher or by pressing and holding the steering wheel’s microphone button.
Grok is currently available only on Model S, Model 3, Model X, Model Y, and Cybertruck vehicles equipped with an AMD infotainment processor. Vehicles must be running software version 2025.26 or later, with navigation command support requiring version 2025.44.25 or newer.
Drivers must also have Premium Connectivity or a stable Wi-Fi connection to use the feature. Tesla notes that Grok does not currently replace standard voice commands for vehicle controls such as climate or media adjustments.
The company has stated that Grok interactions are processed securely by xAI and are not linked to individual drivers or vehicles. Users do not need a Grok account or subscription to enable the feature at this time as well.
News
Tesla ends Full Self-Driving purchase option in the U.S.
In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.
Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.
The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.
Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.
In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.
Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:
🚨 Tesla has officially moved the outright purchase option for FSD on its website pic.twitter.com/RZt1oIevB3
— TESLARATI (@Teslarati) February 15, 2026
There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.
Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.
Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.
Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.
Elon Musk
Musk bankers looking to trim xAI debt after SpaceX merger: report
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.
Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.
The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.
The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.
Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”
That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.
X merged with xAI last March, which brought the valuation to $45 billion, including the debt.
SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:
“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”
The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.
Tesla rolls out xAI’s Grok to vehicles across Europe
Tesla ends Full Self-Driving purchase option in the U.S.
