Piper Sandler has made significant adjustments across the auto sector, slashing price targets for Rivian (NASDAQ:RIVN), Ford (NYSE:F), Stellantis (NYSE:STLA), and Tesla (NASDAQ:TSLA), while raising its outlook on General Motors (NYSE:GM). The moves reflect growing concerns over policy risks, supply chain challenges, and financial headwinds facing legacy automakers and EV startups alike.
Rivian and Stellantis Hit Hard by Downgrades
Rivian Automotive and Stellantis took the biggest hits, with Piper downgrading both stocks due to mounting political and supply chain uncertainties.
- Rivian’s rating was cut from Overweight to Neutral, with its price target slashed from $19 to $13.
- Analysts cited limited near-term catalysts, with no major growth expected before the R2 SUV launch in 2026, despite optimism around Rivian’s joint venture with Volkswagen.
- Stellantis fared even worse, with its price target tumbling from $23 to $13, as Piper flagged a “triple-whammy” of policy risks for 2025.
Ford’s Outlook Dims, GM Gains Favor
Ford Motor Company also saw its target trimmed, dropping from $13 to $9. Piper raised concerns over cash flow pressures from warranty expenses and underwhelming EV launches, adding to investor uncertainty.
In contrast, General Motors received a modest upgrade, with Piper raising its price target from $45 to $48. The firm cited GM’s aggressive buyback program and its low valuation as key factors providing support.
Tesla: Long-Term Potential Despite Target Cut
Despite cutting its Tesla price target from $500 to $450, Piper Sandler maintained an Overweight (Buy) rating, remaining bullish on Tesla’s long-term prospects.
- The firm highlighted EV adoption trends in China as a template for the Western market, predicting a steady march toward 100% EV penetration.
- Tesla’s diversified business across automotive, energy, and autonomous driving was cited as undervalued, keeping the firm’s conviction intact.
Outlook: Caution for Traditional Automakers, Optimism for Tesla
Piper Sandler’s revised price targets underscore growing caution toward traditional automakers and smaller EV players amid macroeconomic challenges and political uncertainties. However, the firm remains optimistic about Tesla’s long-term growth potential, betting on its leadership in EV innovation and expanding ecosystem.
