EV maker Rivian has set its sights high. The brand wants to take down Tesla’s market share, and fast. To do that, they need to make cars. To do that, they need a place to build them. In light of that, the brand has begun construction on a second factory out on the Texas plains. However, this isn’t a solo venture. Rivian, like many EV automakers, got a nice helping hand from Uncle Sam. To the tune of millions.
7,500 jobs makes Rivian a big player in Texas
So, just how many millions did the SoCal EV maker get? How about 440 of them. Yep, $440 million. However, as things sit right now, CEO RJ Scaringe’s company needs the production. Especially if they want to take on Tesla, which has roughly, well, more factories than they do. It’s purely a numbers game. Presently, the company’s Normal, Illinois factory only has two production lines. For now, that’s OK, as they only make two cars, the R1T and R1S. Both of those are effectively the same vehicle with either a truck or SUV body on them.
So, clearly, production needs to expand if Rivian wants to be a player in the new EV game. Moreover, that’s good news for Fort Worth, Texas, where the plant will be built. The company projects that by 2027, they’ll have added more than 7,500 jobs to the area. And that’s not all. Reportedly, there’s also plans to include a community in the area built for roughly 50,000 new residents. Guess it’s not just Joe Rogan telling people to move to Texas.
Tesla’s market share is dwindling
If you ask me, Rivian is in the right place at the right time. They’re a small (ish) up-and-coming EV company that is perfectly positioned to take advantage of our political climate. By that, I mean Joe Biden and his EV push. President Biden has made it clear that he envisions an EV future for the US, even going so far as to say that he wants half of new car sales by 2030 to be EVs. After all, that’s how Rivian got this money in the first place.
That $440 million is from Uncle Sam, a small welcome gift for getting more EVs on the road over the coming decades. More specifically, that tax incentive is from the government of Fort Worth. This recent funding from city governments, as well as the federal government also signals a shift in the winds for Tesla. Marred by recent controversy, the company can no longer rely on fart noises and whimsy to sell cars. And now, the rest of the EV market is getting a boost from the government.
Is Amazon backing and government money enough?
In total, Rivian has raised north of $8 billion in funding from big names, the government notwithstanding. Amazon, Ford, and Fidelity are all putting their weight behind Rivian. Simply put, Rivian is set to leave Tesla out in the cold if this trend continues. For now, we’ll have to wait and see if all that money went into making a cohesive product that’s intuitive, usable, and just plain good enough to beat Tesla.