What Happened?
Shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) jumped 6% in the morning session after the company announced a loan agreement with the U.S. Department of Energy worth $6.6 billion to construct a new manufacturing facility in Georgia. The fund is expected to support the creation of 7,500 new manufacturing jobs and accelerate the production of Rivian's new vehicles (R2 SUV and R3 crossover).
After the initial pop the shares cooled down to $14.85, up 2.7% from previous close.
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What The Market Is Telling Us
Rivian’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 19.2% on the news that the company reported 14,183 vehicle deliveries in Q4 2024, ahead of analysts' consensus estimate of roughly 13,000. Just one day prior, Tesla's Q4 2024 deliveries missed expectations. Additionally, Rivian's press release highlighted that prior shortages of components for vehicle platforms are no longer a hinderance to go-forward production.
Rivian is up 12% since the beginning of the year, but at $14.85 per share, it is still trading 18% below its 52-week high of $18.11 from July 2024. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $147.37.
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