Rivian, Plug Power Stocks Draw Retail Buzz On Report of $8B Loan Push By Biden Ahead of Trump's Office Return
Synopsis
Bloomberg noted that the Department of Energy is preparing to announce a $1.7 billion loan guarantee for Plug Power and close a federal loan of around $6.6 billion for Rivian.
Rivian Automotive and Plug Power shares jumped in premarket trading Thursday, up nearly 2% and over 5%, respectively, drawing significant retail investor interest.
The spike came after a Bloomberg report late Wednesday revealed that both companies might secure billions in financing from the Biden administration before Donald Trump assumes office next week.
The report, citing sources familiar with the matter, noted that the Department of Energy is preparing to announce a $1.7 billion loan guarantee for Plug Power to construct hydrogen plants and close a federal loan of around $6.6 billion for Rivian's manufacturing facility in Georgia.
These announcements are expected later on Thursday.
On Stocktwits, Rivian emerged as one of the top 15 trending symbols, while Plug Power saw a significant increase in message volume.
Sentiment scores were mixed before the bell, with Rivian's reading 'neutral' and Plug Power's 'bearish.'
Retail traders speculated on Rivian's potential price action, with one user predicting a short squeeze that would drive the stock to $17.50 by Friday's close.
Plug Power's stream included bullish comments about an imminent stock rally, while some bearish sentiment lingered on the company missing financial targets in the last four quarters.
Plug Power has a notable short interest of 23.30%.
Rivian has been buoyed by its recent announcement of improved 2024 delivery and production figures and the resolution of a key supply chain issue. Additionally, investors are optimistic about its forthcoming smaller and more affordable models.
Plug Power, on the other hand, continues to spark optimism due to the Inflation Reduction Act's recently released final rules on tax credits for clean hydrogen production. Retail investors argue it stands to benefit more than competitors like Bloom Energy, Nikola, and FuelCell Energy.
Over the past year, Rivian's stock has declined by over 21%, while Plug Power's stock has dropped around 20%.
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