Rivian Automotive Inc (NASDAQ:RIVN) said on Monday it will receive $1.5 billion in state and local incentives for its electric vehicle plant that it plans to build in Georgia.
What Happened: Irvine, California-based Rivian’s $5 billion Georgia plant is expected to employ 7,500 workers when it opens in late 2024.
The workers will have an average annual salary of $56,000, Rivian and Georgia's Department of Economic Development said.
The electric vehicle maker has until 2028 to meet the jobs and investment target requirements to receive the full amount of incentives and tax savings.
See Also: Rivian Says On Track To Meet 2022 Output Target After Stock Drops 9%
Adding Capacity: The Georgia plant would be Rivian’s second after its plant in Normal, Illinois.
Rivian currently makes the R1S sport utility vehicle, R1T pickup truck, and delivery vans at Normal. The plant currently has an annual capacity of 150,000 vehicles, which is set to increase to 200,000 by 2023.
In Atlanta, Georgia, the Tesla Inc (NASDAQ:TSLA) rival's plant is expected to have an annual capacity of 400,000 vehicles when it opens in late 2024.
Rivian, which is backed by Amazon.com Inc (NASDAQ:AMZN) and Ford Motor Co (NYSE:F), said last month it is on track to make 25,000 electric vehicles this year. The startup had last year fallen short of its target of making 1,200 electric vehicles and managed to produce just 1,015 vehicles and delivered 920.
Price Action: Rivian closed 4.9% higher at $31.7 a share on Monday.
Photo courtesy: Rivian
