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Rivian (RIVN) shares slipped on Wednesday, April 2 after the electric vehicle (EV) company reported a 36% year-over-year decline in quarterly deliveries.
The automaker delivered a total of 8,640 electric vehicles in Q1, down significantly from 13,588 in the same quarter last year.
While the number indicates a demand slowdown, it, nonetheless, came in well above the 8,200 that analysts had forecast.
Still, Rivian stock is currently down more than 25% versus its year-to-date high set in early January.
Should You Buy Rivian Stock on Today’s Pullback?
Weakness in Q1 deliveries didn’t particularly come as a surprise for Rivian shareholders as Claire McDonough, its chief of finance, had communicated the expected decline in February.
While the company’s report indicates demand challenges, investors should use the ensuing pullback to load up on RIVN shares, as per Truist analyst Jordan Levy.
Levy currently has a price target of $14 on Rivian stock that indicates potential upside of more than 10% from here.
Rivian is attractive at current levels also because it’s minimally exposed to higher tariffs under President Donald Trump. The EV maker assembles 100% of its cars in the United States.
What ‘Also’ May Mean for RIVN Shares
Last week, the electric vehicle manufacturer announced a spinoff named “Also” that it said will focus on commercializing small electric vehicles, including microcars, neighborhood EVs, and e-bikes.
Truist is bullish on RIVN shares as it sees long-term value in this strategic move that could help diversify the company’s footprint in the EV market.
“We would view Rivian’s minority stake as long-term option value on the micromobility market at this stage,” Levy told clients in a recent report.
Plus, RIVN is going for a price-sales multiple of 2.83x at writing. In comparison, Tesla (TSLA) has a P/S ratio of a much higher 8.53x.
Wall Street Continues to Rate Rivian at ‘Buy’
Note that Truist is not alone in seeing upside in Rivian stock. Demand challenges and deteriorating consumer sentiment have so far failed to make Wall Street bail on RIVN shares.
The consensus rating on the EV stock currently sits at “Moderate Buy” with the mean target of about $15 indicating potential upside of nearly 20% from current levels.
