Wolfe Research has downgraded Rivian, Mobileye, and Visteon as it adopts a more cautious stance on the auto sector for 2026. The firm cites slowing battery electric vehicle demand, rising input costs, and few near-term catalysts. Rivian’s new rating is Underperform, while Mobileye and Visteon were cut to Peer Perform.

Rivian faces mounting pressure from increased capital spending and worsening cash burn. Concerns also swirl around weak near-term visibility for its R2 platform, with meaningful production unlikely until late 2026. Mobileye’s downgrade stems from overly optimistic Street expectations, with limited growth catalysts in its ADAS business and delayed product launches.

Visteon enters a transitional 2026 with tepid organic growth expected and exposure to ongoing DRAM shortages. Wolfe remains more positive on legacy automakers like GM and sees upside in autonomy developments. Suppliers STLA and ALV are also favored.

Investors are being urged to adopt a selective approach in a sector that delivered strong but volatile returns in 2025.