Rivian renegotiates DOE loan down to $4.5 billion, adjusts capacity plans for Georgia plant
Rivian Automotive It said Thursday that it had renegotiated a $6.57 billion loan from the U.S. Department of Energy to $4.5 billion and adjusted production expectations at a facility under construction in Georgia.
The DOE loan was previously set to support two phases of production totaling 400,000 units per year. The amended loan covers one phase of production with a total capacity of 300,000 vehicles, the company said Thursday.
The changes allow Rivian to take out the loan sooner and have more initial production, but reduce the plant’s overall production capacity due to uncertain demand for fully electric vehicles.
Initial loan terms were negotiated under the Biden administration. It was in limbo under the Trump administration. action to cut or reduce such loans. and withdrawn government investments to promote electric vehicles.
Rivian said it plans to take advantage of the loan in 2027, a year earlier than previously planned. The automaker also said production of the company’s upcoming R2 electric vehicle is on track to begin at the facility in late 2028, following the recent start of production at its existing facility in Normal, Illinois.
Rivian CEO RJ Scaringe told CNBC’s Phil LeBeau on Thursday that any future expansion of the Georgia facility would be financed by the company raising the necessary capital through partnerships with companies such as volkswagen And Uber.
Electric vehicle manufacturer announced new loan details in connection with this first quarter resultsThat included a net loss of $416 million, or 33 cents a share, from a loss of $541 million, or 48 cents a share, a year ago. These results per share were not comparable to Wall Street’s expectations.
Rivian’s revenue for the quarter rose to $1.38 billion, up from $1.24 billion a year earlier and just above the $1.36 billion analysts expected, according to LSEG.
The gross profit of the company, which is closely followed by investors, decreased by $87 million in the first quarter compared to the previous year, reaching $119 million. This included a $62 million loss in the automotive segment and a $181 million profit in the software and services division.
Rivian said the decline in automotive profits was primarily due to a $100 million decline in sales of automotive regulatory credits and lower production volumes.
