Rivian Automotive (NASDAQ: RIVN) shares declined by over 5% Monday despite the company announcing a wind energy deal with Apex Clean Energy to power its Illinois manufacturing.
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The stock price decline means Rivian shares are down 72% in 2022 and over 73% in the last 12 months.
The company said in its press release that the signing of the power purchase agreement is for 50 megawatts (MW) of electricity from the renewable energy company's proposed Goose Creek Wind farm in Piatt County, Illinois and will support Rivian's vision of “enabling high-impact renewable energy projects that reduce its carbon footprint.”
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The electric vehicle firm said the purchase and other renewable energy sourcing and on-site generation will allow it to power as much as 75% of its Illinois plant operations on an hourly basis.
However, Apex is still securing permits and approvals for the 300 MW Goose Creek Project to be built, which is a stipulation of the power purchase agreement, with the facility scheduled to begin operations in 2024.
“We have a tremendous opportunity at Rivian to help tackle emissions beyond the tailpipe to support decarbonization of manufacturing and charging of electric vehicles,” commented Rivian Director of Renewable Energy Andrew Peterman. “Long-term success for us means helping to accelerate the transition to carbon-free energy across the entire economy, not just within Rivian's own footprint.”
Last week, Evercore ISI analyst Chris McNally initiated coverage of Rivian Automotive with an In-Line rating and $35 price target, stating it is the largest and most well-funded company of the three new EV entrants he is launching coverage on.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
