A Flood of Positive Developments for Rivian's Shareholders
With 2025 shaping up to be a more subdued year for Rivian Automotive (RIVN 2.58%), the young electric vehicle (EV) company still has plenty to keep investors excited. Let's dive into the recent developments that have made headlines.
Loan Agreement Closed
Perhaps the most significant news for Rivian came in early January 2024, as the company finally closed its loan agreement with the Department of Energy's Advanced Technology Vehicle Manufacturing loan program. The $6.6 billion commitment, first approved in 2024, was contingent on certain financial documents and conditions being met.
The closure of the agreement came just in time, as the incoming administration had expressed concerns about supporting the EV industry. As a result, Rivian will now be able to use the funds to build its second factory in Georgia, enabling additional R2 production capacity and the production of the R3 and R3X models, which are expected to start later in 2026 or early 2027.
Mate Rimac's Endorsement
In a surprising turn of events, Rivian received a glowing endorsement from influential EV visionary Mate Rimac, the CEO of Rimac Group and the man behind Croatian electric hypercar brand Bugatti Automobiles. After visiting Rivian's Illinois headquarters and expressing skepticism about the brand and design, Rimac shared on Facebook his newfound appreciation for the company, specifically the R3X model.
Rimac's positive remarks underscore Rivian's growing influence in the EV world and among industry leaders. Connecting with potential EV and automotive enthusiasts is essential, and the performance-oriented R3X is expected to begin production before the base R3 model.
U.S. EV Sales Ranking
Competition in the EV market is only growing, making it a significant accomplishment for Rivian to rank in the top 10 U.S. EV sales for 2024. The R1S model saw a 23% increase in sales compared to the previous year, despite the enrollment of four new vehicles and the exclusion of five from last year's list.
While Rivian's top 10 position in U.S. EV sales is positive, it's essential to note that Tesla, with the Model Y and Model 3 accounting for 28.6% and 14.6% of U.S. EV sales, respectively, remains a formidable competitor.
Overall, 2025 may see Rivian in a holding pattern while it waits for the production of the R2 in 2026. Nevertheless, the closure of the DOE loan, Mate Rimac's endorsement, and the impressive U.S. EV sales ranking are undeniable good news for Rivian investors as they enter 2025.
The closure of the $6.6 billion loan agreement with the Department of Energy's Advanced Technology Vehicle Manufacturing loan program will significantly benefit Rivian's finance, allowing the company to invest in building its second factory in Georgia and producing the R3 and R3X models.
Mate Rimac's endorsement of Rivian and his positive remarks about the R3X model have increased the company's credibility in the EV world and among industry leaders, potentially attracting more investing opportunities.
