Rivian Stock Charges Ahead For 3rd Day On $6B DoE Loan Details: Retail Celebration Rolls On

Shares of Rivian Automotive Inc. surged over 3% premarket on Friday, poised for a third straight session of gains following the company's announcement of a $6.6 billion loan agreement with the U.S. Department of Energy's Loan Programs Office. 

The funds, including $6 billion in principal and approximately $600 million in capitalized interest, will finance the development of Rivian's next manufacturing facility in Georgia.

The plant, located in Stanton Springs North near Social Circle, Georgia, is expected to create 7,500 jobs and facilitate the production of Rivian's new R2 SUV and R3 crossover. 

Construction is set to begin in 2026, with production expected by 2028. Rivian stressed that it had collaborated closely with the DOE for over two years to finalize the loan agreement.

CEO R.J. Scaringe highlighted the new facility's importance, stating, "This additional capacity for our mass market products is key to U.S. leadership in the electric vehicle industry."

The loan will be disbursed in two phases: up to $3.4 billion for the first phase and $2.6 billion for the second, excluding capitalized interest. 

Rivian said it has already initiated hiring for construction and management roles in Georgia, with recruitment efforts expected to ramp up as construction nears.

RIVN sentiment and message volume Jan 17 premarket as of 7 am ET | source: Stocktwits

On Stocktwits, message volume about Rivian soared by 250% following Thursday's report about the loan push from Bloomberg, and sentiment turned 'extremely bullish' heading into Friday's session. 

Retail traders were optimistic about the loan's potential to accelerate Rivian's growth, especially as the stock was set to snap a streak of four consecutive weekly declines.

Also lifting sentiment was a report from Spiegel indicating Volkswagen's interest in deepening its partnership with Rivian. The German auto giant's CEO, Oliver Blume, reportedly suggested potential collaboration on modules and bundling purchasing volumes.

Rivian's stock has shed over 15% in the past 12 months but is on track to end this week approximately 5% higher.

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