RIVN Stock: Rivian doubles down on plans to build a second electric vehicle factory
Rivian (Nasdaq:Raven) The stock is in the green today, although shares are still down about 18% over the past month. Last week, the electric vehicle (EV) startup confirmed that its plan to build a second electric vehicle factory in Georgia during early 2024 is on schedule. The factory will be home to Rivian’s R2 platform, which is expected to consist of less expensive and smaller vehicles compared to the company’s current models, the R1T and R1S. Additionally, Rivian recently announced that it will unveil a vehicle design for the R2 platform in 2024.
The $5 billion plant in Georgia is expected to eventually add 7,500 new jobs. Rivian has also been offered an estimated $1.5 billion in state and local incentive packages, with an investment and hiring deadline of 2030.
Once production begins, the factory will have a production capacity of up to 200,000 vehicles during its initial phase. Upon completion of the second phase, which is expected to take place in 2030, maximum production is expected to double to 400,000 vehicles. Rivian’s current factory in Normal, Illinois has a maximum annual capacity of 150,000 vehicles.
RIVN Stock: Rivian is on track to begin construction of the Georgia plant in 2024
Rivian said it will complete the dirt grading process at the construction site by the end of 2023. “We’re pleased with the progress we’ve made so far (…) I mean we’re close to completing the grading.” said Dennis Cherry, senior director of design and retail development at Rivian.
However, RIVN shares have been under heavy pressure in recent weeks due to a slew of negative headlines. For beginners, Tesla (Nasdaq:TSLA) recently announced that Cybertruck deliveries will begin on November 30. Meanwhile, the old car rival stronghold (New York Stock Exchange:F) stated that it would slow production of its F-150 truck due to supply chain constraints. Furthermore, Rivian announced a $1.5 billion green convertible bond offering, which surprised shareholders.
“The purpose of this offer, similar to the raise we did earlier this year, is to de-risk the launch of the R2 in Georgia,” a Rivian spokesperson said. Reuters. “Our primary goal is to maintain a conservative balance sheet.”
Shareholders will soon receive more details about Rivian’s business prospects, as the company will report its third-quarter earnings on November 7 after the market closes.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publication guidelines.