Rivian Automotive, Inc. (RIVN) saw its stock price plummet by 5.02% during intraday trading on Tuesday.

The sharp decline followed a downgrade by DA Davidson, which cut its rating on the electric-vehicle maker to underperform from neutral and lowered its price target. Analysts expressed significant concerns about the risks associated with Rivian's upcoming R2 launch, noting that the company's R1 outlook was below expectations. They highlighted that Rivian would need to execute the best mid-size EV launch since 2021 without the benefit of federal tax credits or an extensive dealer network, stating that "a lot has to go right for Rivian to make its numbers this year."