Shares of Rivian Automotive, Inc. (RIVN) tumbled 5.08% in Wednesday's intraday trading session, as investors reacted to a cautionary note from Bernstein analysts regarding the U.S. auto sector's outlook for the latter half of the year.

The sharp decline comes amid warnings that the strong results expected from U.S. automakers in the second quarter may be misleading. Bernstein analysts suggest that current tariffs are artificially boosting demand, which could lead to a "demand vacuum" in the second half of 2025. This pull-forward effect, combined with potential price increases due to rising costs from tariffs, is expected to create significant challenges for automakers like Rivian.

Notably, Bernstein maintains an underperform rating for Rivian, along with other major players such as Ford and General Motors. The analysts believe that Wall Street estimates for the auto sector in the second half of 2025 and into 2026 are overly optimistic, given the anticipated market conditions. This pessimistic outlook appears to be weighing heavily on Rivian's stock, as investors reassess the company's near-term prospects in light of these industry-wide concerns.