Rivian To Tap Federal Loan Only After Georgia Plant Construction Begins

• The previous Joe Biden administration advanced the government loan during the last leg of his presidency.
• Rivian expects to expand production of its low-cost R2 lineup when the Georgia plant comes online
• Rivian’s stock is up just 1.5% this year compared with Tesla’s 14% advance.

Rivian Automotive said it plans to access federal loan funds only after construction begins on its new manufacturing plant in Georgia, which is slated to start in 2026. Vehicle production at the site is expected to begin in 2028. 

The company hasn't specified when it will begin drawing on the $6.6 billion loan, but a company spokesperson confirmed to Stocktwits in an email that, under its terms, Rivian must begin construction and contribute equity before accessing the funds. The plant, however, doesn't need to be completed before loan draws can begin. Rivian CFO Clair McDonough communicated the stance in an interview with Bloomberg.

Rivian’s stock is up just 1.5% this year compared with Tesla’s 14% advance, clearly underperforming the broader market amid macroeconomic and fundamental challenges.

Holding Off On Government Largesse

Speaking to reporters in Detroit, McDonough said, “It’d be prior to starting production in 2028 that we’d be drawing down the loan,” a Bloomberg report stated. 

The government loan advanced by the previous Joe Biden administration during the last leg of his presidency remains in limbo, given President Donald Trump’s stance against clean energy, particularly EVs. In May, Energy Secretary Chris Wright reportedly said his agency didn’t plan to honor the billions of dollars in loan commitments made by the previous administration. Incidentally, the timeline flagged by the Rivian CFO would fall in the next presidential election year.

Rivian rehashed its production plans last year and opted to manufacture its upcoming low-cost R2 EV lineups at its existing Normal, Illinois, plant in 2026 with an eye on curbing costs. It expects to expand production of this lineup when the Georgia plant comes online and also use this plant to produce its proposed R3 model. 

What Retail Is Feeling About Rivian

On Stocktwits, retail sentiment toward Rivian stock worsened to ‘neutral’ as of early Wednesday from ‘bullish’ a day ago. The message volume on the stream remained ‘normal.’

A watcher said they expect Rivian’s earnings, due after the market closes on Nov. 4, to surprise many people. Among the dynamics they discussed are “loss of low margin regulatory credits,  250 million settlement, which is a bargain, Q4 R1 sales guidance, VW milestone strategic delay.” Last week, Rivian agreed to pay $250 million to settle a class action lawsuit brought by holders of its shares from November 2021 through March 2022, while denying any wrongdoing.

Another user predicted a stock run-up to $14.50 before it sells off following the earnings report.

Rivian’s Challenges

An uncertain macroeconomic and geopolitical backdrop has weighed on an industry operating in a capital-intensive environment. The Trump administration’s decision to end the federal EV tax credit has made matters worse. The company also opted for cost-saving initiatives this month, including a rumored 4% workforce reduction.

Rivian’s stock snagged a downgrade in mid-October, as Mizuho analyst Vijay Rakesh expressed worries about slowing EV demand as Inflation Reduction Act credits expire, the Fly reported. The analyst cut Rivian's 2026 deliveries forecast to 60,000 units from 68,000 units, below the consensus of 72,000.

Editor’s note: This story has been updated to reflect revisions made by the primary source, Bloomberg News, which clarified the timing of when Rivian may access its federal loan.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Toyota Pushes Back On Trump’s Claims: No ‘Explicit’ Promise Was Made About $10B US Investment

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