Rivian Automotive, Inc. (RIVN) saw its stock price plummet by 5.08% during Wednesday's trading session, as investors reacted to a pessimistic outlook for the automotive industry. The electric vehicle maker's shares fell sharply following a research note from Bernstein analysts that cast doubt on the sustainability of strong second-quarter results in the auto sector.

According to the Bernstein report, while U.S. automakers are likely to report robust results for the second quarter, this strength is largely attributed to temporary factors. The analysts warn that tariffs are pulling demand forward, resulting in double-digit percentage increases in March and April volumes. However, they caution that this surge is not indicative of a structural recovery in the auto industry.

For Rivian specifically, the outlook appears challenging. The analysts maintain an underperform rating on the company, along with other major automakers like Ford and General Motors. They predict a "demand vacuum" in the second half of the year, which could particularly impact newer entrants like Rivian. Additionally, the expected increase in costs due to tariffs may force automakers to raise prices and lower production, potentially putting further pressure on Rivian's stock price and operations in the coming months.