NORMAL, Ill. - Rivian (NASDAQ:RIVN) Automotive, Inc. (NASDAQ: RIVN) has secured an $827 million incentive package from the State of Illinois, which will be used to expand the company's manufacturing capabilities at its Normal, IL facility. The investment is aimed at supporting the production of Rivian's upcoming midsize SUV, the R2. As part of the expansion, the electric vehicle maker will also be involved in public infrastructure improvements and workforce training programs.
The funding is expected to facilitate several city improvement projects, reflecting Rivian's commitment to the local economy and community. RJ Scaringe, the CEO of Rivian, expressed gratitude towards the State of Illinois and emphasized the importance of the partnership in bringing the R2 to market and expanding consumer choices in the electric vehicle sector.
Governor JB Pritzker highlighted Illinois' growing role in the electric vehicle market and the economic benefits such investments bring, including job creation and community revitalization. He also pointed out the alignment of this initiative with the state's climate goals.
Rivian announced in March that the R2 production will commence at the Normal plant, which currently manufactures the R1S, R1T, and commercial electric delivery vehicles. The R2 is designed to offer a blend of performance and utility for both adventure and everyday use.
Since the start of production in 2021, Rivian's Normal facility has produced over 100,000 electric vehicles. The company has previously invested more than $2 billion in Normal, contributing over $3.9 billion to the local economy and spurring further development in the region.
This news is based on a press release statement from Rivian Automotive , Inc. The company, known for its innovative electric vehicles, continues to make strides towards accelerating the transition to zero-emission transportation.
InvestingPro Insights
As Rivian Automotive, Inc. (NASDAQ: RIVN) embarks on expansion efforts with the support of the Illinois incentive package, the company's financial health and market performance remain critical for investors. According to real-time data from InvestingPro, Rivian holds a market capitalization of $9.34 billion. Despite the company's significant revenue growth over the last twelve months, amounting to $4.434 billion with a growth rate of 167.43%, Rivian's gross profit margin paints a different picture, with a -45.78% margin indicating challenges in converting sales into actual profit.
InvestingPro Tips highlight that while Rivian has more liquid assets than short-term obligations, suggesting a degree of financial stability, the company is quickly burning through cash. This could be a point of concern for investors, especially considering that analysts do not anticipate Rivian to be profitable this year. Additionally, with a recent significant return over the last week of 8.1%, the stock has experienced high price volatility, which is a characteristic that investors should be mindful of when assessing the company's stock performance.
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