Rivian downsizes DOE loan to $4.5B, while boosting capacity of Georgia factory

Key Points:

• Rivian has revised its Department of Energy loan deal, reducing the borrowing amount from $6.6 billion to $4.5 billion for its new Georgia factory, with plans to draw on the loan earlier, in early 2027.
• The Georgia plant's initial production capacity is increased by 50% to 300,000 vehicles, aiming to lower per-unit costs and allow for future expansion, with part of the output dedicated to producing R2 robotaxis for Uber.
• Uber has invested $300 million in Rivian and plans to purchase 10,000 autonomous R2 robotaxis by 2028, with options to buy up to 40,000 more starting in 2030, potentially investing up to $1.25 billion if milestones are met.
• Rivian began R2 production despite tornado damage at its Illinois plant, with initial employee deliveries made and customer deliveries expected soon; the Georgia factory is under early construction with vehicle production slated for late 2028.
• Financially, Rivian reported $1.38 billion revenue in Q1 2026, a slight decline in automotive sales, a reduced net loss of $416 million, increased R&D spending by 20%, and a negative free cash flow of $1 billion, nearly double from the previous year.