Rivian (RIVN, Financial), the EV startup that rivals Tesla, offers a bag of potential catalysts that could drive the stock price higher. Here are a few key points:
The Conditional Loan up to $6.6 billion
The U.S. Department of Energy (DOE) offers a conditional loan to support the construction of a new manufacturing facility in Georgia. The conditional loan is actually part of the Advanced Technology Vehicles
Manufacturing (ATVM) Loan Program and worths up to $6.6 billion.
As an automaker specializes in electric vehicle, Rivian planned to expand its production facility in Georgia. The expansion plan was then welcomed by the conditional loan offered by the DOE up to $6.6 billion.
The loan is expected bolster Rivian's production as much as 400,000 units annually and create more than 7,500 operational jobs and 2,000 construction jobs by 2030 while strengthening the EV ecosystem in the U.S. The loan offer is a positive development for the company and investors buy the sentiment positively today.
Volkswagen's Capital Influx
Before the loan offer, Volkswagen as Rivian's joint venture is already planned to increase its investment to $5.8 billion to integrate Rivian's EV software-defined vehicle technology into Volkswagen's future electric vehicles.
As part of the joint venture agreement, Rivian already pocketed $1 billion convertible note from Volkswagen and Rivian will begin to construct its R2 model next year and plan to build the R3 model beyond that.
Tesla's Legal Suit Has Come to An End
Back in 2020 Tesla filed a lawsuit against Rivian, the EV automaker giant accused Rivian steal its battery technology secret from Tesla's former employees. After a lengthy legal battle, Tesla agreed to dismiss the case by December 24, 2024, as conditional settlement terms are met. The details are not disclosed but it is likely proven that Rivian did not misuse any proprietary technology.
California's Rebate Program on EV Purchase Incentive
California where Rivian is headquartered just announced the plan to revive the Clean Vehicle Rebate Program (CVRP). It's a rebate program to incentivize the purchase of electric vehicle (EVs) by reducing the purchase price of EVs to encourage more people to go for zero-emission vehicles.
The incentive may increase the demand for Rivian's EV and boost the confidence of its investors to go bullish on Rivian.
