Insights

Here’s Why Rivian Stock Jumped Tuesday Morning

What happened
Rivian Automotive (NASDAQ: RIVN) stock popped Tuesday morning on news related to a planned second manufacturing facility. Rivian shares jumped as much as 6% in early trading, though it ultimately retreated from those gains. As of 11:21 a.m. ET, the stock is up 1.2%. 
So what
In December 2021, Rivian announced it planned to build a $5 billion manufacturing facility — its second — in Georgia, but that plan has hit obstacles. Local residents pushed back against it. Those obstacles seem to have been overcome, however, as The Atlanta-Journal Constitution reports state and local officials have agreed to give Rivian $1.5 billion of incentives, including tax breaks, to get the project moving. 

Image source: Rivian Automotive.

Now what
Georgia governor Brian Kemp said the plant, which is expected to eventually employ more than 7,500 workers, is the largest economic development project ever undertaken in the state. Kemp defended the decision for incentives using an existing example: In 2006, the state offered automaker Kia a package worth about $570 million in today’s dollars that has resulted in what Kemp called “great-paying jobs going to rural Georgia.” 
Rivian is still ramping up production and, due to supply chain challenges, expects to produce only 25,000 vehicles this year. But Georgia built some protections into the offer. Rivian will have to succeed over the long term to realize the benefits of the package. 
The report says that Rivian has until 2028 to fulfill 80% of its employment goal and investment plans and that it must maintain them through 2047. Otherwise, it will be subject to state claw-back provisions. 
That seems prudent, since Rivian has yet to prove it can manufacture at scale and fully execute its plans. Investors should have that same outlook, knowing an investment in Rivian carries risk, and they should be open to any possible outcome. 
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Rivian Automotive (NASDAQ: RIVN) stock popped Tuesday morning on news related to a planned second manufacturing facility. Rivian shares jumped as much as 6% in early trading, though it ultimately retreated from those gains. As of 11:21 a.m. ET, the stock is up 1.2%. 

So what

In December 2021, Rivian announced it planned to build a $5 billion manufacturing facility — its second — in Georgia, but that plan has hit obstacles. Local residents pushed back against it. Those obstacles seem to have been overcome, however, as The Atlanta-Journal Constitution reports state and local officials have agreed to give Rivian $1.5 billion of incentives, including tax breaks, to get the project moving. 

Image source: Rivian Automotive.

Now what

Georgia governor Brian Kemp said the plant, which is expected to eventually employ more than 7,500 workers, is the largest economic development project ever undertaken in the state. Kemp defended the decision for incentives using an existing example: In 2006, the state offered automaker Kia a package worth about $570 million in today’s dollars that has resulted in what Kemp called “great-paying jobs going to rural Georgia.” 

Rivian is still ramping up production and, due to supply chain challenges, expects to produce only 25,000 vehicles this year. But Georgia built some protections into the offer. Rivian will have to succeed over the long term to realize the benefits of the package. 

The report says that Rivian has until 2028 to fulfill 80% of its employment goal and investment plans and that it must maintain them through 2047. Otherwise, it will be subject to state claw-back provisions. 

That seems prudent, since Rivian has yet to prove it can manufacture at scale and fully execute its plans. Investors should have that same outlook, knowing an investment in Rivian carries risk, and they should be open to any possible outcome. 

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!