Designer, developer, and manufacturer of category-defining electric vehicles (EV) and accessories, Rivian Automotive Inc. (RIVN) announced its plans to build a $5 billion manufacturing facility in Georgia. The company has planned a carbon-conscious campus in the east of Atlanta, in Morgan and Walton Counties.
However, shares of the EV maker slipped more than 11% during the extended trading session on December 16, after the company posted a third-quarter loss of $1.2 billion, reflecting a loss per share of $12.21. The company earned revenue of $1 million through its first deliveries of the R1.
Georgia Manufacturing Plant
The Georgia pant is the company’s second in the United States; the company’s first plant is based in Normal, Illinois. Construction of the plant is expected to start in the summer of 2022, and production is expected to start in 2024.
The site has been selected based on favorable factors such as logistics, environmental impact, renewable energy production, availability and quality of talent and fit with the company culture.
Surrounded by ample natural space, the plant will span across almost 2,000 acres. Once built, the plant will have an annual production capacity of 400,000 vehicles. The company will add more than 7,500 job opportunities at the new plant. The company will also host various community engagement and workforce training programs in the area.
Additionally, Rivian is also ramping up its existing site in Normal, which was recently approved for a 623,000 square-foot expansion, making the total footprint 4 million square feet. The company will also hire about 800-1,000 more employees at the plant by the second quarter of 2022.
The Chief People Officer at Rivian, Helen Russell, said, “We’re happy to partner with Georgia on our new manufacturing site, which will build our next generation of products that are important for scaling our business. Our work together is driven by a compelling purpose and rooted in building a highly collaborative environment that creates a true sense of belonging. We’re excited for Georgians to bring their creativity and ideas to Rivian. We’re confident that, alongside Illinois, Georgia is the place for Rivian to continue to scale and thrive.”
Following the company’s quarterly results, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on the stock with a price target of $145, which implies 33.2% upside potential to current levels.
Rakesh said, “Slightly raising our EPS estimates, trimming revenues… We see RIVN a leader and pure-play in the fast-growing EV market addressing the premium SUV/truck segment.”
Overall, the stock has a Moderate Buy consensus rating based on 10 Buys and 4 Holds. The average Rivian price target of $134.64 implies 23.67% upside potential to current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Rivian, with 39.7% of portfolios tracked by TipRanks, increasing their exposure to RIVN stock over the past 30 days.