Shares of Rivian Automotive, Inc. (RIVN) surged 5.06% in pre-market trading on Friday, driven by a series of positive developments for the electric vehicle maker.
Firstly, Rivian finalized a $6.6 billion loan agreement with the U.S. Department of Energy (DOE) to support the construction of a new manufacturing facility in Georgia. This loan is expected to create 7,500 new manufacturing jobs and accelerate the production of Rivian's upcoming R2 SUV and R3 crossover models.
Additionally, Volkswagen's CEO Oliver Blume expressed the company's interest in deepening its partnership with Rivian. Potential areas of collaboration include sharing modules and bundling purchasing volumes, which could potentially benefit both companies through economies of scale and cost savings.
Furthermore, Rivian's management stated that the company expects to achieve a positive gross profit in the fourth quarter of 2024, indicating improved financial performance. This news, coupled with the anticipated start of production for the R2 model in early 2026 and the potential for up to $2 billion in equity funding from the Volkswagen partnership this year, has bolstered investor confidence in Rivian's prospects.
