TLDR
- Rivian breaks ground on $5 billion Georgia manufacturing plant despite losing $1.66 billion in first half of 2025
- Company faces “do or die” moment as EV sales growth slows to just 1.5% in 2025’s first half
- Georgia facility will produce 200,000 vehicles yearly starting 2028, with potential for 400,000 total capacity
- Rivian holds 3% of US EV market share compared to Tesla’s 45%, but leads among startup automakers
- Plant construction continues despite Trump administration ending EV tax credits worth up to $7,500 per vehicle
Rivian Automotive broke ground Tuesday on its long-delayed $5 billion manufacturing facility in Georgia. The groundbreaking comes as the electric vehicle maker faces mounting financial pressure and cooling demand across the EV sector.
The California-based company lost $1.66 billion in the first half of 2025. Sales growth for electric vehicles in the United States has slowed to just 1.5% in 2025’s first half, according to Cox Automotive data.
Rivian currently produces vehicles at its Illinois plant in Normal. The company makes the R1T pickup truck starting at $71,000 and the R1S sport utility vehicle. It also manufactures delivery vans for Amazon and other customers.
The Illinois facility will begin producing the smaller R2 SUVs next year with prices starting at $45,000. The expanded Illinois operation can assemble 215,000 vehicles annually.
Production Capacity and Market Position
The Georgia plant represents Rivian’s path to profitability and scale. The facility will produce 200,000 vehicles yearly starting in 2028. A planned second phase would add another 200,000 vehicles in annual capacity.
These projections mark a major jump from current production levels. Rivian expects to deliver 40,000 to 46,000 vehicles this year, down from 52,000 last year. The company says it’s limiting current production to prepare for 2026 model launches.
“For Rivian, it’s do-or-die time,” said Alex Oyler, North American director at SBD Automotive. “We saw with Tesla that the key to profitability is scale, and you can’t scale if your cheapest vehicle is $70,000.”
Tesla dominates the US electric vehicle market with almost 45% of sales in the first half of 2025. General Motors has captured 13% of the American EV market. Rivian holds a 3% share but leads among startup automakers.
The company initially filled demand for electric pickups and SUVs. Competition now includes Ford’s F-150 Lightning and the electric Chevrolet Silverado.
Financial Challenges and Market Headwinds
Rivian shares have fallen more than 80% since the company’s 2021 initial public offering. The stock decline contrasts with broader automaker shares that have outpaced the general market.
The Trump administration ended electric vehicle tax credits on September 30. Buyers no longer qualify for savings of up to $7,500 per car. Chief Policy Officer Alan Hoffman said Rivian didn’t build its business model around federal incentives.
“We did not build this company based upon federal tax incentives,” Hoffman said. “And we’re going to prove that we’re going to be successful in the future.”
Some automakers are pulling back from electric vehicle plans. Stellantis canceled Ram’s electric truck program last week. Ford delayed production at a Tennessee plant, and General Motors abandoned EV plans at a Detroit-area facility.
Rivian faces additional costs from tariffs worth $2,000 per vehicle. The company will lose $140 million in revenue this year from the ended tax credit program.
Georgia pledged $1.5 billion in incentives for the plant in exchange for 7,500 jobs. The positions will pay at least $56,000 annually on average. The state already spent $175 million buying land and improving infrastructure.
Construction was originally scheduled to begin earlier but was paused as Rivian burned through cash in 2024. Volkswagen agreed to invest $5.8 billion in Rivian for software and technology access. The Biden administration approved a $6.6 billion loan for the Georgia facility in November.
Some local residents oppose the plant over environmental concerns. Eddie Clay, who lives nearby, says his well water turned muddy after excavation began at the site.
Rivian expects the Department of Energy will distribute the federal loan money despite the Trump administration’s opposition to EVs.
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