Rivian shares saw a 9% increase in intraday trading following an announcement that the state of Illinois will provide $827 million for the expansion of its plant in Normal. This investment comes after the company paused plans for a $5 billion plant in Georgia. The funds will go towards expanding the plant and providing job training programs for employees.
The stock opened at $9.42 on Thursday and reached a high of $9.83 before settling at $9.83, marking a 6.7% increase for the day. Updates to the plant in Illinois will begin in the coming months, with production continuing for the R1S and R1T models, as well as commercial electric delivery vehicles. This news is part of Rivian’s efforts to further invest in its Illinois facility.
Rivian has invested $2 billion into its Illinois plant, which has already produced over 100,000 electric vehicles. The company’s stock has experienced a 14% increase in the last five days, although it is down more than 44% in the past six months. The Illinois Governor, J.B. Pritzker, has been actively seeking to bring tech companies to the state, including a recent announcement of a $2 billion electric vehicle battery gigafactory in Manteno.
The Illinois plant will also host production of Rivian’s R2 and R3 models, which were initially planned to be produced in Georgia but will now be made in Illinois. The decision to pause the Georgia plant was made in March, with the company citing a considerable reduction in capital needed for the launch of the SUV. This move aligns with Rivian’s strategy to streamline production and investment in its existing facilities.
Overall, the investment from Illinois is a significant boost for Rivian as it continues to expand its operations and products. The company’s stock performance reflects the positive news, and with plans to produce new models in the state, Rivian is poised for growth in the electric vehicle market. Governor Pritzker’s efforts to attract tech companies to Illinois further solidify the state as a key player in the industry, with Rivian leading the way in sustainable automotive innovation.
