Rivian Stock Revs Up Pre-Market On $6.6B Federal Loan Approval: Retail Charges Ahead
By Stocktwits Inc | First Published Nov 26, 2024, 6:04 PM ISTRivian's Georgia plant, set to open in 2028, will produce its upcoming R2 SUVs and R3 crossovers.
Shares of Rivian Automotive Inc. ($RIVN) rose as much as 6% in pre-market trading on Tuesday after receiving conditional approval for a $6.6 billion loan from the U.S. Department of Energy (DOE) to build its electric vehicle factory in Georgia.
The Georgia plant, slated to begin operations in 2028, will produce Rivian's future models, including the smaller, more affordable R2 SUVs and R3 crossovers, the California-based startup said.
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Rivian plans to build the facility in two phases, each adding 200,000 units of annual production capacity, for a total of 400,000 units aimed at both domestic and international markets.
While the DOE’s conditional commitment signals its intent to finance the project, Rivian must meet various technical, legal, environmental, and financial requirements before the loan is finalized and funds are disbursed.
Retail sentiment around the stock has improved to ‘bullish’ (63/100) from ‘neutral’ a day ago with a jump in chatter to ‘high’ from ‘low’.
Retail investors on Stocktwits are hopeful that Rivian could soon cross the $20 threshold, viewing it as a potential turnaround for the 43% drop the stock has suffered this year.
However, opinions remain divided on what might fuel the gains, with many focusing on the company’s anticipated fourth-quarter results in February, according to a poll conducted by Stocktwits.
The announcement comes amid uncertainty about the future of U.S. EV policies with President-elect Donald Trump set to take office in January.
On Monday, California Governor Gavin Newsom announced plans to propose a new version of the state’s Clean Vehicle Rebate Program (CVRP) if Trump eliminates federal EV tax credits.
Newsom’s proposal aims to replace federal incentives with state-level rebates, which could be funded by California’s Greenhouse Gas Reduction Fund, according to the statement from the governor’s office.
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Read also: Rivian Stock Rises As Tesla Trade Secrets Case Nears Settlement, Newsom Counters Trump's EV Tax Cut Plans: Retail Energized
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