(The Center Square)\u00a0\u2013 All-electric automaker Rivian Automotive announced on Monday that it received a \u201cconditional commitment\u201d for a $6.6B loan from the U.S. Department of Energy.<\/p>\n
If finalized, the loan would be used to aid in the construction of a $5B Rivian plant just outside Atlanta, Georgia.<\/p>\n
Politicians from both sides of the aisle were quick to react to the announcement of additional funding going to what they\u2019ve labeled<\/strong><\/a> a \u201cfailing company.\u201d<\/p>\n \u201cBiden is forking over $6.6B to EV-maker Rivian to build a Georgia plant they\u2019ve already halted,\u201d\u00a0said Vivek Ramaswamy<\/strong><\/a>, who will be leading President-Elect Donald Trump\u2019s new Department of Government Efficiency, along with Elon Musk, CEO of X and Tesla Motors. \u201cOne \u2018justification\u2019 is the 7,500 jobs it creates, but that implies a cost of $880k\/job which is insane. This smells more like a political shot across the bow at Elon Musk and Tesla.\u201d<\/p>\n With its first plant currently operating in Illinois, the California-based vehicle startup company officially closed on the 1,800-acre lot in Georgia in Nov. 2023.<\/p>\n Acquired to be the location for a second \u201cnext-generation manufacturing facility\u201d producing upwards of 400,000 vehicles a year, the company halted construction plans earlier this year after financial troubles. Over the course of the year,\u00a0shares in Rivian have dropped<\/strong><\/a>\u00a0about 50%, while\u00a0the Michigan-based Center for Economic Accountability labeled the project the “Worst Economic Development Deal of the Year” for 2022.<\/span><\/p>\n Georgia also promised over a billion dollars in incentives for the company, The Center Square previously reported<\/strong><\/a>.\u00a0<\/p>\n Rivian said the loan will accelerate the company’s “growth and leadership of electric vehicle design” as well as benefitting the electric vehicle industry throughout the United States.<\/span><\/p>\n \u201cThis loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology,\u201d said Rivian founder and CEO RJ Scaringe in a statement<\/strong><\/a>. \u201cThis loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint.\u201d<\/p>\n The funding will come from the Department of Energy\u2019s Advanced Technology Vehicle Manufacturing Loan Program, which has also historically loaned both General Motors and Tesla money.<\/p>\n Jo Jorgensen, the 2020 Libertarian candidate for president,\u00a0called out the loan<\/strong><\/a>.<\/p>\n \u201cElectric vehicle startup Rivian Automotive has snagged up to $6.6 billion in funding from the U.S. government to grow its production capability,\u201d she said. \u201cRelated news-Rivian is ranked among the worst brands for reliability in 2024. Per usual, our federal government is leading the race to the bottom!\u201d<\/p>\n Earlier this month, the company\u2019s quarter three financials<\/strong><\/a> signaled even more financial troubles for Rivian.<\/p>\n In the third quarter, it had a negative gross profit of $392 million, producing only 13,157 vehicles and “delivering” only 10,018. That means the company had a loss-per-vehicle of nearly $40,000.<\/p>\n “They should at least be required to get to positive gross margin with existing models before being given billions for future models,” Musk said of the loan announcement<\/strong><\/a>.\u00a0<\/span><\/p>\n While Rivian promises<\/strong><\/a> the Georgia factory \u201cwill add billions of dollars in positive economic impact for Georgia,\u201d Georgia Representative Marjorie Taylor Greene<\/strong><\/a>, a Republican, pushed back on that.<\/p>\n \u201cI can tell you right now Georgians do not support Rivian and are sick and tired of seeing tax dollars handed over to this failing company, federal and state,\u201d Greene said.<\/p>\n