Wednesday, April 24, 2024

Electric cars | Rivian Builds New $5 Billion Factory

Must read

Maria Gill
Maria Gill
"Subtly charming problem solver. Extreme tv enthusiast. Web scholar. Evil beer expert. Music nerd. Food junkie."

(New York) Rivian, the US maker of electric SUVs and vans that just stormed Wall Street despite poor sales, on Thursday announced plans to spend $5 billion to build a second plant in the United States.

The group said in a statement that the enterprise, which will eventually employ more than 7,500 workers in Georgia (southeast), “represents a major step in our progress toward greater production.”

Worth $96 billion on the New York Stock Exchange, more than GM or Ford manufacturers, Rivian actually began making its first truck for sale, called the R1T, only in September.

The company said Thursday that this allowed it to generate $1 million in third-quarter revenue. for a net loss of $1.2 billion.

The company emphasizes that starting the production chain involves significant expenditures and that at the same time investment in research and development must continue.

It also incurred a loss of $458 million related to the revaluation of a financial instrument.

The new plant in Georgia will be able to produce up to 400,000 cars per year. Construction is scheduled to begin in the summer of 2022 and production there will begin in 2024.

Rivian also plans to expand its current plant in Illinois to be able to produce 200,000 vehicles annually.

It can count on the $13.2 billion raised on the occasion of its initial public offering in November. The group, which was founded in 2009, has capitalized on investors’ current enthusiasm for electric vehicles.

See also  Best Stocks to Buy Right Now Canada for Beginners

The company had only produced 652 vehicles by December 15 and warned that it would not meet its target of 1,200 units in 2021. By the same date, however, it had received 71,000 orders for its pickup trucks and SUVs.

It can also count on an order for 100,000 pickup trucks by Amazon, one of its investors. Rivian plans to deliver the first copies by the end of the year.

Its shares fell more than 10% in electronic trading after the bourse closed.

Latest article