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Rivian confirms new $5 billion U.S. plant as EV reservations jump 28% to 71,000

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Rivian’s Manufacturing Campus in Normal, IL. RJ Scaringe with his team

Rivian

Rivian AutomotiveAs the company starts production at its Illinois facility, it has confirmed Thursday plans to construct a new Georgia vehicle assembly plant.

Rivian has reached two important milestones. Rivian reported it’s also achieved its first quarterly resultsAfter market close, as a publicly traded company. According to the company, reservations for electric pickups and SUVs R1T and R1S have increased by 28%, compared to November’s 55,400 units.

Quarterly results for the company fell short of estimates that were previously published by the company as part of its recent IPO.

Rivian posted an operating loss of $776 millions and a loss net of $1.23billion for the third quarter. Rivian had predicted previously that it would suffer an operational loss of $745 to $795 million, and lose $1.21 billion to $1.28 billion.

On revenue of approximately $1 million, the company suffered a loss of $12.21 per share.

Wall Street analysts had expected that the company would report an earnings per share loss of $5.52 on $1 million in revenue, according to several estimates by Refinitiv. CNBC doesn’t compare reported earnings per share to Wall Street analysts in a company’s first report after going public due to uncertainty about share counts.

Rivian shares closed at $108.87/share on Thursday, down 5.3% from the announcements. Afterhours trading was a little more difficult for shares, which fell 3%.

According to media reports, the location of the new battery assembly plant and battery factory will be east Atlanta. Estimates suggest that it will cost $5 billion, and have 7,500 employees.

Rivian is owned by several stakeholders AmazonAnd Ford MotorIPO, a massive success in November that took, to the public. It was named the first automaker to go to marketThe R1T is an all-electric pickup truck.

Rivian’s Wall Street analysts set high standards for Rivian by comparing RJ Scaringe, CEO to Superman, and declaring that Rivian is the best Wall Street analyst. “the one” capable of challenging EV leader Tesla.

Rivian, however, is still an exciting growth story. The company expects to spend approximately $8 billion on capital through 2023. Analysts such as John Murphy from BofA Securities predict that Rivian will not turn an operating profit before at least 2025.

This is the latest news. Stay tuned for new updates.

— CNBC’s Michael Bloom contributed to this report.

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