Rivian (RIVN) shares rose more than 4% yesterday after the company secured a $6.6 billion loan from the Department of Energy (DOE) to build an electric vehicle (EV) plant in Georgia. Similarly, Plug Power (PLUG), a hydrogen fuel cell solutions provider, saw its stock climb over 3% amid reports of ongoing discussions with the U.S. government for funding to expand its hydrogen fuel cell production.
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These moves align with the administration’s broader strategy to promote clean energy technologies and reduce carbon emissions.
Rivian Secures $6.6 Billion Loan for Expansion
Rivian’s $6.6 billion loan from the DOE shows the government’s focus on clean energy projects. The funding will be provided in two parts: $3.4 billion in the first phase and $2.6 billion in the second. This will help Rivian speed up production of its R2 and R3 models, with work at the Georgia plant set to begin in 2028. The project is also expected to create thousands of jobs and support efforts to lower carbon emissions.
However, for Plug Power, the specifics of the funding deal remain unclear. Though the company is reportedly close to securing a contract with the U.S. government, no details about the amount or terms have been confirmed.
U.S. Accelerates Clean Energy Push
These investments come as the current administration speeds up clean energy initiatives before President-elect Donald Trump returns to office. Trump’s past proposals to cut DOE programs like the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which is vital for financing clean energy projects, have raised concerns about the future of clean energy funding under his leadership.
Is Rivian a Buy, Sell, or Hold?
With four Buys and four Holds, Rivian scores a Moderate Buy consensus rating. Over the past year, PLUG has declined by more than 13%, and the average PLUG price target of $14.63 implies an upside potential of 1.32% from current levels.
Is PLUG a Good Stock to Buy?
Analysts remain sidelined about PLUG stock, with a Hold consensus rating based on three Buys, six Holds, and one Sell. The average PLUG price target of $3.18 implies a upside potential of 16.06% from current levels.
