Rivian Automotive (RIVN, Financial) just got a lifeline—and it's a big one. The EV maker snagged conditional approval for a jaw-dropping $6.6 billion loan from the Department of Energy's Advanced Technology Vehicle Manufacturing program. CEO RJ Scaringe says the funding will “aggressively scale” production for Rivian's next-gen R2 and R3 models, targeting affordability and capability to woo buyers. Oh, and there's more: the Georgia factory this cash will fund isn't just about churning out EVs—it's expected to create 7,500 jobs and cement Rivian as a U.S. manufacturing powerhouse. Early reactions sent the stock soaring as much as 7% in premarket trading. But the party didn't last long, as concerns about Rivian's long road ahead tempered the enthusiasm.
Here's the kicker: the Georgia plant won't start rolling out cars until 2028, and Rivian's stock has already taken a 42% beating this year. Sure, the company plans to produce the R2 model sooner at its Illinois facility, saving a cool $2.25 billion and speeding up its market entry. But the clock is ticking, and Rivian has to navigate supply chain chaos, hefty cash burn, and looming political headwinds. A potential rollback of federal EV tax credits under the incoming Trump administration could shake up the entire market. Still, Rivian isn't just sitting on its hands. The $5.8 billion partnership with Volkswagen AG and a $1.5 billion incentive package from Georgia suggest Rivian is playing the long game.
So, is Rivian a buy? Analysts think there's upside—Wedbush slapped a $20 price target on the stock, pointing to Rivian's bold vision and potential for a comeback. But let's be real: it's going to take more than optimism to deliver. Rivian has to prove it can execute, scale, and stay competitive in a market brimming with heavyweights. For now, investors are watching closely, torn between the promise of tomorrow and the hurdles of today.
