Good news came the same month when the company announced it planned to build a second assembly plant in Georgia, but it wasn’t enough to help weather the drop in investor confidence that led all EV stocks to plummet in April.
Rivian’s property tax exemption in Georgia on the ropes
Judge Trammel also ruled that Rivian should pay property taxes for the leased land because of how much control the company would have over it.
The development authority, which originally courted Rivian with the incentives and represents four surrounding county governments, is considering an appeal to the decision.
Rivian’s goals in Georgia
When fully operational, Rivian hopes the Georgia plant will produce 400,000 vehicles a year, equipping the brand to expand its business. The company hoped to break ground on the project this coming summer and begin production in 2024.
It’s unclear whether the court ruling will delay that goal, as Rivian is yet to respond or comment. But right now, it’s a win for the residents that oppose the construction of the plant.
And in the future, it could keep officials from using the common legal maneuver to encourage business in the state.
Georgia court ruling could keep Rivian production at a trickle
Rivian seems caught in a Catch-22. With only one running factory, it’s struggled to keep up with demand for its two electric vehicles, the R1T and R1S.
The production problems are causing investors to back out, resulting in a drain on the company’s cash reserves. But that lack of funding is in part why Judge Trammel ruled against the EV maker’s tax break deal offered by Georgia State leaders to build another factory.
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