Rivian secures $6.6 billion loan for new plant – but with one major caveat
California EV maker Rivian has said it has secured conditional approval of a loan of up to $6.6 billion from the U.S. Department of Energy to build a production facility in Georgia. Among those conditions is a big one, that the company won’t actively oppose union organizing efforts.
Rivian has been setting plans in place to build a plant in Georgia – the company’s second US plant – but the company has hit some tough economic times, with shares dropping about 50% this year. Earlier this year, the company put its Georgia factory on hold.
Since, it has been building its smaller, more affordable R2 SUV at its plant in Normal, Illinois, where it also makes its flagship R1S SUVs and the R1T pickup trucks.
“This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Rivian CEO RJ Scaringe said in the statement.
Of course, it is “conditional” approval, meaning that Rivian has “to satisfy certain technical, legal, environmental, and financial conditions before the energy department grants the loan,” the company said.
Rivian secures a $6.6 billion loan from the US Department of Energy – with a few stipulations
While details of the conditions weren’t included in the original report, one detail was, at least touched on: that Rivian will not, in fact, actively oppose union organizing efforts at the Georgia plant, a source close to the subject told Reuters. But that of course, the loan wouldn’t “guarantee unionization” at the plant either. In an email, Rivian declined to comment on the matter at this time.
The Illinois factory, its only plant, has also been in the spotlight due to racking up more “serious” US safety violations than any other automaker since the start of 2023, according to Bloomberg. And the company hasn’t been exactly warm to unionizing efforts, despite pressures from President Biden to do so. Back when Rivian applied for financing from the Department of Energy, the government was already nudging the company to shift to a friendlier stance toward the United Auto Workers Union, although what that exactly means isn’t clearer. It could mean, as Bloomberg cited in July, to include discussion around labor engagement and showing more openness to working with labor unions. Of course, the incoming president has a different stance on this issue, so perhaps the current lack of clarity is just a way of holding off until we have a better idea of how both the EV landscape and UAW support will change.
The Rivian factory in Normal employs around 7,400 workers, and the EV maker is one of the city’s largest employers, with multiple members of some families working at the plant.
Rivian’s Georgia plant will have a yearly capacity of 200K
The Georgia loan comes from the government’s Advanced Technology Vehicles Manufacturing loan program, which has also given loans to Tesla, Ford, and GM. Rivian’s Georgia EV plant is the second-largest development project in the state behind Hyundai’s $7.6 billion facility that began production last week.
The plant would help Rivian bring 400,000 EVs to market “and into greater use,” the Department of Energy said back in October as it was considering the loan. The 1,744-acre site for the plant is 40 miles east of Atlanta, and will include two production blocks, each with a capacity of up to 200,000 vehicles annually. Rivian is expected to break ground in the second quarter of 2026.
Monday, Rivian announced that the loan includes $6 billion of principal and $600 million of capitalized interest. The news follows that of Rivian closing its $5.8 billion investment from Volkswagen as part of their technology joint venture. Back in 2022, Rivian secured $1.5 billion in state and local incentives for the Georgia plant. In May, the EV maker received $847 million in state incentives to expand its Illinois factory.
Photo credit: Rivian
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If you’re considering going electric, May will be a great time to score a deal on an EV lease. Automakers are slashing lease prices on some of the most popular EVs to move inventory – here are four standouts.
Nissan Ariya SUV
The Nissan Ariya SUV has an MSRP of $41,805. Its lease term is 36 months, with $4,409 due at signing and a mileage allowance of 10,000 a year. Monthly payment? A sweet $129!
Nissan cut the 2025 Ariya Engage’s price by $144 in April, so it now has an effective monthly cost of $251 – that’s seriously affordable for an electric SUV. If you’re already a Nissan driver, then you’re going to get an even better deal, because Nissan is offering a $1,000 loyalty discount on the Ariya, which brings its effective cost down to $224 per month.
CarsDirect, which sniffed out this deal, thinks this Ariya deal will be in place until Memorial Day, so take advantage of tariff-free pricing while you can.
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Honda Prologue SUV
The Honda Prologue SUV has an MSRP of $48,850. Its lease term is 36 months, with $1,399 due at signing and a mileage allowance of 10,000 a year. The monthly payment on the Prologue is $239.
The 2024 Honda Prologue has up to $18,800 in rebates, and the price includes a $1,000 lease loyalty discount or conquest offer. In California and other ZEV states, the EX has an effective cost of just $278 per month; in other parts of the US, pricing will be around $30 higher. This offer ends July 7.
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Tesla Model 3
The Tesla Model 3 has an MSRP of $43,880. Its best lease term is 24 months, with $1,044 due at signing and a mileage allowance of 10,000 a year. The monthly payment on the Model 3 is $349.
The 2025 Tesla Model 3 still has the $7,500 federal government EV rebate. Several months ago, Tesla reduced the amount due at signing on all Model 3s. And for those who want to lease a Long Range Model 3, the effective cost can be as low as $393 per month.
You can lease the Model 3 for 36 months, but the folks at CarsDirect found that the better deal will be had on 24-month leases. They compared the Model 3’s MSRP to the 2025 Lexus IS 300 F Sport’s MSRP, which is nearly identical, and the Model 3 was around 30% cheaper to lease.
Acura ZDX
The 2024 Acura ZDX has an MSRP of $65,850. Its best lease term is 36 months, with $4,699 due at signing and a mileage allowance of 7,500 a year. The monthly payment on the ZDX is $299.
The 2024 ZDX is Acura’s cheapest vehicle to lease because it features up to $29,450 in lease cash. However, the best deal is limited to California and ZEV states. If you cash in on a loyalty discount or conquest cash, the effective cost is $430 per month. This offer runs til June 30.
Click here to find a local dealer that may have the Acura ZDX in stock. –trusted affiliate copy
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Ford (F) reported its first-quarter earnings, beating Wall Street’s revenue and EPS expectations. However, with Trump’s auto tariffs, Ford is suspending full-year guidance. Here’s a breakdown of Ford’s Q1 2025 earnings
Ford Q1 2025 earnings preview
After crosstown rival General Motors cut its full-year financial guidance last week, investors are waiting to see if Ford will follow suit.
Ford’s previous 2025 forecast called for EBIT of $7 billion to $8.5 billion and capital expenditures between $8 billion and $9 billion.
The biggest threat is Trump’s new auto tariffs, which include a 25% duty on imported vehicles and many parts. Since Ford builds a greater percentage of vehicles in the US than any other major automaker, outside of Tesla, it isn’t expected to see as big of an impact.
CEO Jim Farley called it “an opportunity for Ford,” during an interview with CNN last week, saying the company has a “different footprint, a different exposure for tariffs.”
Ford imports around 21% of the vehicles it sells in the US, while GM imports around 46%. According to Estimize, Wall St expects Ford to post Q1 EPS of $0.0 on revenue of $38.02 billion.
The company reports earnings for each of its three business units, Ford Blue (gas-powered vehicles), Model e (electric vehicles), and Ford Pro (commercial and software business).
In the fourth quarter, Ford’s EV unit (Model e) lost another $1.4 billion while Pro and Blue each reported an adjusted EBIT of $1.6 billion.
Financial breakdown
Ford beat Wall Street estimates, reporting first-quarter revenue of $40.7 billion with an adjusted EPS of 0.49.
- Q1 2025 Revenue: $40.7 billion vs $38.02 billion expected.
- Q1 2025 Adjusted EPS: $0.49 vs $0.0 expected.
The company posted adjusted EBIT of $1 billion, down 63% from Q1 2024. Ford said its first-quarter EBIT suffered a nearly $200 million hit from added tariff costs, primarily in Ford Blue and Ford Pro.
Ford Pro generated an EBIT of $1.3 billion, Ford Blue $96 million, and Ford Model e reported an EBIT loss of $849 million.
For Model e, the company is focused on improving gross margins and “exercising a disciplined approach to investments in battery facilities and next-generation products.” Although still a nearly $1 billion loss, it’s still a $500 million improvement from Q1 2024.
Ford said higher Model e revenue was driven by new EVs launching in Europe, like the electric Explorer and Capri.
The company said its “Power Promise” promotion, which includes a free home charger and several other benefits, has helped drive demand in the US.
Although it’s tracking within its previous full-year adjusted EBIT guidance of between $7 billion and $8.5 billion, Ford is suspending full-year guidance due to the uncertainty surrounding tariffs.
Ford estimates the full-year gross cost of tariffs to be around $2.5 billion. It expects a tariff-related net adverse adjusted EBIT impact of about $1.5 billion for the full year 2025.
Ford also extended its “From America, For America” campaign last week. The promo includes employee pricing on most 2024 and 2025 models and now runs through July 4.
Check back for more info from Ford’s first quarter conference call. Ford is also hosting its annual meeting on Thursday, May 8, where we should learn more about its EV plans and how it will navigate the new tariffs.
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