Rivian: DOE Loan Approval Comes Just in Time for $6B

The Department of Energy’s (DOE) loan approval came just in time, potentially securing $6 billion for Rivian. This is a significant moment for Rivian and its investors, offering a much-needed boost ahead of potential economic challenges.

Read more here.

Musk might make moves to counter Rivian, but he’s got bigger competitors like BYD and other Chinese manufacturers to focus on.

There’s heavy activity in leap puts at the $5 strike, with 128k open interest. This reminds me of Lucid’s cooling-off phase. Might buy some leap puts tomorrow unless it breaks $16.50 intraday.

Shai said:
There’s heavy activity in leap puts at the $5 strike, with 128k open interest. This reminds me of Lucid’s cooling-off phase. Might buy some leap puts tomorrow unless it breaks $16.50 intraday.

Funny, I think calls are about to rip in the short term.

@Merrill
Short term, maybe, but growth stocks will get slammed with the inevitable market correction this year.

As a Rivian investor, I don’t think they should rely on taxpayer money to stay afloat. Even if they repay the loan (which I doubt), taxpayers won’t directly see the benefits.

Neve said:
As a Rivian investor, I don’t think they should rely on taxpayer money to stay afloat. Even if they repay the loan (which I doubt), taxpayers won’t directly see the benefits.

China pours billions into its EV sector to dominate global markets. If the U.S. doesn’t invest in domestic companies like Rivian, we’ll lose that competition. Loans like this are necessary for national security and economic growth. Plus, other automakers have historically repaid government loans successfully.

@Paxton
I understand the argument, but U.S. automakers and foreign companies already provide jobs here. The national debt and inflation are concerns, and this loan might not be the best use of taxpayer dollars.

@Neve
It’s an investment in the future, much like infrastructure spending. The return comes in jobs, economic stability, and staying competitive globally.

If Rivian can’t get a private loan, it raises questions about their financial stability. Government loans should be a last resort, not a bailout.

Charlie said:
If Rivian can’t get a private loan, it raises questions about their financial stability. Government loans should be a last resort, not a bailout.

Banks are skeptical of Rivian’s business model. Taxpayer-funded loans might help Rivian, but it’s risky for the public.

Why not impose tariffs on subsidized Chinese EVs instead of handing out loans? That way, the U.S. benefits without giving taxpayer money to corporations.

Ocean said:
Why not impose tariffs on subsidized Chinese EVs instead of handing out loans? That way, the U.S. benefits without giving taxpayer money to corporations.

Tariffs are a tool, but loans encourage domestic innovation and production. It’s about building a competitive edge, not just protecting it.