Apex Clean Energy and Rivian have agreed to a power purchase agreement for 50 megawatts of electricity from the latter’s projected Goose Creek Wind farm in Piatt County, Illinois. This is according to a press release from Rivian Automotive (NASDAQ:RIVN). In the first hour of trade on Monday, Rivian stock (RIVN) declined by 3%.
The company referred to the agreement as its first significant energy purchase and anticipates that it will help realize its long-term vision of enabling high-impact renewable energy projects that lessen its carbon footprint while also enhancing the lives of its clients, local communities, and the electrical grid.
Using the help of this purchase, Rivian (NASDAQ:RIVN) will be able to power up to 75% of the activities at its Illinois plant on an hourly basis with carbon-free energy. Additionally, the PPA will help the company fulfill its promise to use only renewable energy to power its Rivian Adventure Network and Waypoints charging.
Rivian renewable energy executive Andrew Peterman stated, “We have a fantastic chance to assist tackle emissions beyond the tailpipe to enable decarbonization of manufacturing and charging of electric vehicles.”
Rivian Stock Forecast
Rivian Automotive, Inc.’s (NASDAQ:RIVN) stock price has experienced a 70% retracement this year, but I think RIVN still has a lot of room to rise in the long run.
The EV company also just confirmed its prediction for the manufacturing of 25K electric vehicles, and the stock, in my opinion, continues to be quite alluring to investors on a cash-corrected basis.
Although the stock trades at a low sales multiple, Rivian Automotive’s sales are projected to double in 2023. RIVN stock seems like a great Christmas present with just a few weeks till the holidays.
A Key Player in the EV Market Is Expected to Be Rivian Automotive
At the end of June, when Rivian claimed 98K pre-orders, the electric vehicle manufacturer had 114K pre-orders on its books as of November 7, 2022, a 16% increase. In its third-quarter financial report, Rivian Automotive confirmed its 25K production goal for 2022.
The EV startup had already decreased its goal production level from 50K due to irritating supply-chain issues and bottlenecks that impacted many more businesses in the industry than simply Rivian Automotive. However, Rivian Automotive is experiencing a rapid improvement in its situation.
Featured Image: Megapixl @ Michaelvi