IT’S do or die time for an up-and-coming automaker, according to an industry expert.
The US carmaker is at a critical juncture as it begins building its Georgia plant to scale production and reach profitability, all the while drivers are set to lose a $7,500 tax credit.
Rivian’s lineup grows from the R1T and R1S (both pictured) to the affordable R2 SUV and future R3[/caption]
Governor Brian Kemp (right) and CEO RJ Scaringe (left) break ground on Georgia’s EV future at Rivian’s new plant[/caption]
Rivian’s $5 billion Georgia plant is set to produce 200,000 EVs annually by 2028[/caption]
According to WHEC, the upcoming rollback of EV tax credits poses a financial challenge for Rivian Automotive – an ambitious EV manufacturer from California.
The company currently produces three distinct models; the R1T pickup truck, the R1S SUV and the Electric Delivery Van (EDV) for Amazon.
But in the coming months, the brand is facing its biggest challenge yet as it begins construction on a $5 billion EV plant in Georgia to coincide with the release of the R2, a slightly cheaper SUV.
Being constructed near Social Circle, Georgia, the facility is expected to produce 200,000 vehicles annually – starting in 2028.
What’s more, plans have been put in place for future expansion to double capacity.
Rivian‘s R2, which will start at $45,000, will be produced at its Illinois plant next year, but the Georgia plant is essential to meet future demand for R2 and the upcoming R3.
RJ Scaringe, Rivian’s CEO, is particularly ambitious about the R2.
He said: “The description I’ll say for R2 is that it isn’t an electric vehicle.
“I describe R2 as an incredible five-passenger offroad machine. And it happens to be electric.”
The brand, though, faces slowing EV sales growth in the US, with stiff competition from Tesla, Ford, GM and others, on top of the penalty of President Donald Trump’s tariffs that are increasing vehicle costs.
Speaking of Trump, Rivian has also lost significant revenue due to the rollback of EV tax credits under his administration.
Previously, federal tax credits for EVs provided up to $7,500 in savings for new vehicle purchases.
However, as part of the “One Big Beautiful Bill Act,” President Trump chose to roll back these incentives – effectively ending several EV-related benefits.
The tax credits are now set to expire on September 30.
After the deadline, buyers will no longer qualify for tax credits for new EVs, used EVs, home chargers or commercial EV purchases.
To that end, many car firms and dealers are promoting last-chance sales to take advantage of the credits.
Nevertheless, the rollback is expected to cause a temporary dip in EV sales.
DO OR DIE
Rivian’s current problems are culminated in a loss of $1.66 billion in the first half of 2025 – while its stock price has plummeted since its IPO in 2021.
That means a lot rides on the success of the R2 and the operations at their new Georgia plant.
Alex Oyler, North American director of auto research firm SBD Automotive, said: “For Rivian, it’s do-or-die time.
“We saw with Tesla that the key to profitability is scale, and you can’t scale if your cheapest vehicle is $70,000.
“So they need that plant online to achieve a level of scale of R2 and ultimately R3.”
The Georgia facility, situated on a 2,000-acre site, is key to Rivian’s plan – described as the “foundation for our growth” by Scaringe.
Rivian was originally supposed to begin production at the Georgia site earlier, but paused construction in 2024 due to financial struggles.
Work resumed after the brand secured mega investments from Volkswagen and loans from the Biden administration.
Georgia, too, has pledged $1.5 billion in incentives to Rivian, including tax breaks and infrastructure improvements, in exchange for creating 7,500 jobs – with an average salary of $56,000 annually.
The state has already spent $175 million on land purchases, grading and road improvements, and now Rivian must meet employment targets to fully benefit from these incentives.
As expected, there are locals who oppose the plant’s construction, with some citing environmental concerns and disruptions to farming communities.
One local resident, Eddie Clay, complained about the proximity of the project to his home and claimed his well water became muddy after excavation began.
“I planned on dying and retiring on the front porch and the biggest project in Georgia has to go next door to me, of all places in the country?” Clay added.
Georgia Governor Brian Kemp supports the plant, describing it as part of his vision to make Georgia “the electric mobility capital of America.”
However, he also acknowledged that the process to establish the facility has been challenging.
He said: “The road to get here has not been smooth.”
Tesla attacks
A series of attacks have targeted Tesla showrooms and vehicles starting in early 2025.
The FBI has started investigating the attacks as potential domestic terrorism.
The recent attacks have been linked to people protesting CEO Elon Musk and his work in Donald Trump’s administration.
Some of the attacks include:
- January 20 and February 19 – Tesla dealership in Salem, Oregon, attacked with Molotov cocktails and gunfire
- March 3 – Seven Tesla charging stations set on fire near Boston
- March 9 – Four Cybertrucks burned in a parking lot in Seattle, Washington
- March 18 – A Tesla service center is set on fire with Molotov cocktails in Las Vegas
- March 24 – Multiple bombs found inside a Tesla showroom in Texas
Source: CSIS
