Rivian downsizes DOE loan to $4.5B of Georgia factory

Key Points:

• Rivian has revised its Department of Energy loan deal, reducing the borrowing amount to $4.5 billion from the originally allocated $6.6 billion to build its new Georgia factory, with plans to draw on the loan earlier in 2027.
• The Georgia plant’s initial production capacity is increased by 50% to 300,000 vehicles, aimed at lowering per-unit costs and supporting future expansion, including manufacturing R2 robotaxis for Uber.
• Uber is investing $300 million initially in Rivian and plans to purchase 10,000 autonomous R2 robotaxis for rollout by 2028, with options to buy up to 40,000 more starting in 2030 and potential investments totaling $1.25 billion through 2031.
• Rivian began production of the R2 at its Illinois plant despite tornado damage and has started employee deliveries, with customer deliveries expected soon; the Georgia factory is expected to start vehicle production by the end of 2028.
• In Q1 2026, Rivian reported $1.38 billion in revenue but a net loss of $416 million, improved from the previous year, while R&D and operating expenses rose significantly, contributing to a negative free cash flow of $1 billion.