Why Rivian Stock Tops the Market Today

The pickup and SUV maker is one of the hottest electric vehicle (EV) stocks on the scene. rivian cars (RIVN 3.59%)It was a good Thursday at the stock exchange. Investors traded the company’s shares up nearly 4% on news that the company had secured billions of dollars in funding from a highly trusted source. This rise contrasted with the recession. S&P 500 (^GSPC -0.21%) Throughout the trading session; It fell 0.2%.

The safest lender

Rivian announced in a press release that it has signed a loan agreement with the U.S. Department of Energy (DoE). The EV manufacturer could borrow up to $6.6 billion to finance construction of a factory near the city of Social Circle, Georgia. The company plans to produce the R2 SUV and R3 crossover (essentially a combination of a sedan and SUV) at the facility.

Rivian said construction of the plant, using borrowed funds, should begin in 2026. The first vehicles produced there will be launched in 2028. The company estimates the project will create 7,500 jobs.

The success of automobile manufacturing largely depends on the number of products a manufacturer can produce. In a press release, Rivian aptly quotes founder and CEO RJ Scaringe as saying, “This additional production capacity for our mass-market products is key to America’s leadership in the electric vehicle industry.”

notable wins

It’s a bit of a stretch to describe Rivian as a “leader.” That tag arguably belongs to a leading EV powerhouse. tesla. But there’s nothing wrong with a little marketing hype. Meanwhile, raising billions of dollars in funding from solid lenders is clearly a win for the company.