Rivian (NASDAQ:RIVN) stock is in the green today, although shares are still down by about 18% for the past month. Last week, the emerging electric vehicle (EV) company confirmed that its plan to build a second EV plant in Georgia during early 2024 is on schedule. The plant 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. In addition, Rivian recently announced that it would unveil the vehicle design of the R2 platform in 2024.
The $5 billion Georgia plant is expected to eventually add 7,500 new jobs. Rivian has also been offered an estimated $1.5 billion from state and local incentive packages, with an investment and hiring deadline of 2030.
Once production begins, the plant will have an output capacity of up to 200,000 vehicles during its initial phase. Upon completion of the second phase, which is forecast for 2030, maximum output is expected to double to 400,000 vehicles. Rivian’s current plant in Normal, Illinois has a maximum annual capacity of 150,000 vehicles.
RIVN Stock: Rivian on Track to Begin Construction of Georgia Plant in 2024
Rivian has stated that it will complete the process of grading dirt at the construction site by the end of 2023. “We are thrilled with the progress we’ve gotten so far […] I mean, we are this close to finishing grading,” said Rivian Senior Director of Design and Retail Development Denise Cherry.
Still, shares of RIVN stock have been hammered in recent weeks due to a plethora of negative headlines. For starters, Tesla (NASDAQ:TSLA) recently announced that deliveries of its Cybertruck would begin on Nov. 30. Meanwhile, legacy automotive competitor Ford (NYSE:F) stated that it would slow production of its F-150 truck due to supply-chain constraints. On top of that, Rivian announced a $1.5 billion convertible green bond offering, which took shareholders by surprise.
“The purpose of this offering, similar to our raise earlier this year, is to de-risk the launch of R2 in Georgia,” said a Rivian spokesperson to Reuters. “Our primary goal is to maintain a conservative balance sheet.”
Shareholders will soon receive more details on Rivian’s business prospects, as the company will report its third-quarter earnings on Nov. 7 after the market close.
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 writer, subject to the InvestorPlace.com Publishing Guidelines.