Rivian Automotive, Inc. (RIVN) saw its stock plummet by 5% in pre-market trading on Monday, as investors reacted to a bearish analyst report highlighting multiple challenges facing the electric vehicle maker. Bernstein analyst Daniel Roeska maintained an underperform rating on Rivian and set a price target of $6.10, implying a potential 50% drop from the stock's previous closing price.

The analyst's concerns centered around several key issues: 1. Tariff impacts: Despite producing vehicles in the U.S., Rivian imports crucial components like batteries from South Korea and China. The looming 25% tariff on key auto parts, set to be implemented in May, could significantly impact the company's costs. 2. Lowered delivery forecast: Bernstein cut its 2025 delivery forecast for Rivian by 20% to 37,000 units, citing recent softness in deliveries and the lack of a known catalyst for growth in 2025. 3. Financial headwinds: The analyst team expects Rivian's adjusted EBITDA to reach negative $2.2 billion, which is 17% worse than the company's current forecast. They also raised the possibility of Rivian needing to raise fresh equity.

Adding to investor worries are potential challenges related to Rivian's recent victories. The company might struggle to meet the profit milestones required for the full $5.8 billion investment from its joint venture with Volkswagen. Additionally, there are concerns about the timely receipt of the $6.6 billion Department of Energy loan for Rivian's Georgia plant, which is crucial for producing next-generation vehicles.