Seeking Alpha upgraded Rivian Automotive to Hold, ending a Sell rating held since 2021. The analyst previously compared the company's IPO to Pets.com. Rivian shares have declined 86% since that comparison, resulting in a more attractive valuation.
Improving unit economics and narrowing losses drove the rating change. Financial impacts from the Volkswagen partnership are now appearing on the company's financial statements.
Rivian still relies on cash reserves and equity issuance to fund operations. Current cash flow trends indicate the company is moving toward eventual profitability.