11:39 AM EST, 02/24/2025 (MT Newswires) -- Rivian Automotive ( RIVN ) is making progress towards

sustainably positive gross margins, but risks are piling up, BofA Securities said in a report Monday.

BofA said Rivian remains one of the most viable among the startup EV OEMs with solid tech/product and intangible value in the brand.

However, the report said the 2025 outlook was softer than it expected and the VW partnership is complicating earnings forecasts for at least the next four years.

The note also pointed to increasing competition amid slowing demand for electric vehicles and indications that the US may pull back on EV incentives.

"Given the Trump Administration's focus on cost cutting, we believe there could be risk to RIVN's $6.6bn Department of Energy loan closed by the Biden Administration," the report said.

BofA downgraded the stock to underperform from neutral and lowered its price target to $10 from $13.

Shares of Rivian were down more than 7% in recent trading.

Price: 12.03, Change: -0.94, Percent Change: -7.27