What happened
This week has not been a fun week to own stock in Rivian Automotive (RIVN 1.92%).
For four straight days, shares of the electric truck company have plummeted as investors reacted to Rivian's ill-fated move to retroactively raise prices on pre-ordered trucks, followed by the company reversing that decision -- and now, Wall Street's verdict on the fiasco.
As of 11:25 a.m. ET on Friday, Rivian is down another 5.5%, bringing its losses for the week to a staggering 29%.
Image source: Getty Images.
So what
Investment banker R.W. Baird has a role in this latest hit to Rivian's stock price. As TheFly.com reports, this morning Baird cut its price target on Rivian by one-third, from $150 to just $100.
Baird's note doesn't really tell us anything new about the pricing fiasco. It obviously damaged Rivian's reputation and, because the company will now absorb the effects of inflation by recanting its price increase, the prospects for turning profitable anytime soon are damaged as well.
Now what
What's curious about today's 33% price-target cut, though, is that Baird maintained its outperform rating on Rivian stock. According to TheFly, the analyst thinks "Rivian has gathered one of the best management teams and top industry talent to fully capitalize on mobility's [electric vehicle] revolution."
You wouldn't know that from how badly management fumbled the ball this week. But Baird seems convinced that, at a share price of just $48 and a price target of $100, Rivian stock will double this year. Personally, I have my doubts.
