Rivian's Stock Rises Amid Georgia Factory Revival Plans

Rivian Automotive's stock has surged 7.45% amid plans to restart work on its Georgia factory, backed by a $6.6 billion loan from the Biden administration. The company aims to boost production of its R2 SUV and R3 hatchback models, creating jobs and enhancing American manufacturing. Analysts maintain a cautious outlook with a consensus "Hold" rating and an average price target of $14.72, suggesting a 14.1% upside from current levels.

Rivian Automotive's (NASDAQ: RIVN) stock has seen a significant increase of 7.45% today, fueled by the company's announcement that it will restart work on its Georgia factory. The move is part of a broader plan to boost production of its upcoming R2 SUV and R3 hatchback models, which are expected to be more affordable than its current offerings. The company's efforts are backed by a $6.6 billion loan from the Biden administration, aimed at enhancing American manufacturing and creating jobs in the region.

The factory, which is expected to open in 2028, will be a significant addition to Rivian's operational footprint in the U.S. Southeast. The company has already invested over $80 million in the project as of June 20, 2025, doubling its investment from July 2024. Rivian is also engaging with existing suppliers to gauge interest in establishing facilities near the Georgia factory, and has requested information about regional suppliers from the state's economic development department [2].

Analysts maintain a cautious outlook on Rivian's stock. The consensus rating is "Hold," with an average price target of $14.72, suggesting a 14.1% upside from current levels. This reflects the market's view that while the news is positive, it does not fundamentally change the perception of Rivian's business. The stock has been highly volatile, with 36 moves greater than 5% over the past year [1].

Despite the positive news, Rivian faces challenges. The elimination of the $7,500 federal EV tax credit and concerns over weakening demand for its current R1T pickup and R1S SUV models have led to downgrades and lower sales forecasts. Guggenheim analyst Ronald Jewsikow moved Rivian's rating to 'Neutral' from 'Buy' four days ago, citing these factors [1].

Investors should consider these developments carefully, weighing the potential benefits of the new factory and models against the ongoing challenges and market volatility.

References:
[1] https://markets.financialcontent.com/stocks/article/stockstory-2025-7-18-why-are-rivian-rivn-shares-soaring-today
[2] https://ca.investing.com/news/stock-market-news/rivian-to-resume-georgia-factory-prepwork-in-august--techcrunch-93CH-4106737