Rivian Automotive, Inc. RIVN will receive a $6.6 billion loan from the Department of Energy (DOE) to build a manufacturing plant in Georgia. This facility will produce SUVs and crossover vehicles, marking a shift from Rivian's current focus on luxury vehicles to what the DOE describes as mass-market models. 

Per Rivian, the funding will accelerate the launch of its new R2 SUV and R3 crossover, supporting U.S. leadership in the electric vehicle sector. Per the Biden administration, the plant will create 7,500 operational jobs by 2030 and have an annual production capacity of 400,000 vehicles.

The DOE also confirmed that Plug Power Inc.’s PLUG subsidiary, Plug Power Energy Loan Borrower, LLC, will receive a $1.66 billion loan guarantee to finance up to six clean hydrogen production facilities across multiple states. These facilities will use the company’s electrolyzer technology. The Biden-Harris administration emphasizes that advancing clean hydrogen is crucial to its broader strategy of building a robust clean energy economy, promoting healthier communities, enhancing energy security and creating new economic opportunities nationwide.

This funding comes amid concerns over the future of the DOE’s loan program, which has grown into a $400 billion green financing initiative under President Biden. The Biden administration, as a final push before the incoming Trump administration, has announced $22.92 billion in conditional loan commitments to support projects by eight utility companies. 

These investments aim to modernize infrastructure, expand clean energy and improve grid reliability for approximately 15 million customers across 13 states, including California, Michigan and New Jersey. The loans are provided through the Loan Programs Office’s Title 17 Energy Infrastructure Reinvestment program, established under the 2022 Inflation Reduction Act.

RIVN’s Zacks Rank & Key Picks

Rivian currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY and Blue Bird Corporation BLBD, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings suggests year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 60 days.

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Plug Power, Inc. (PLUG) : Free Stock Analysis Report

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