What happened

Shares of Rivian Automotive (RIVN 2.33%) have been heading lower this morning after two analysts just cut stock price estimates. The stock was near the day's low, down by 4.7% as of 11:25 a.m. ET. Rivian shares have declined by 10% over the last week and now trade near an all-time low. 

So what

Two analysts cut price targets for Rivian shares yesterday, including RBC Capital, which slashed its target price by half. Morgan Stanley additionally lowered its price estimate by $2 per share, but still rates the stock a buy with a new price estimate of $24 per share. But the reason the firm continues to think it's a good time to buy is it believes that the bad news is already "baked into the stock." 

RBC, however, actually dropped its rating from the equivalent of a buy to a hold, saying shares that it previously valued at $28 are now worth just $14, as reported by The Fly. Interestingly, though, RBC thinks the long-term outlook for Rivian remains good. 

Rivian R1T with its reflection in water.

Image source: Rivian Automotive.

Now what

Rivian has projected it will produce 50,000 electric trucks this year, but some investors think the company has been conservative with that estimate. RBC analysts, however, think that there isn't much of a chance that Rivian surprises to the upside with its production volume in 2023. While the firm believes Rivian is well positioned over the long term with its lineup of consumer trucks and an electric commercial delivery van, it doesn't see near-term catalysts for the stock. 

Rivian and other early-stage electric vehicle makers have been battling increasing competition and high input costs, pressuring margins and lengthening runways to profitability. But with Rivian trading around its all-time low, investors with a longer time horizon might want to start purchasing some shares for an aggressive portion of a portfolio. The company's next update with first-quarter results is due out on May 9.