It’s not an easy time for U.S.-based electric vehicle manufacturers like Rivian Automotive (NASDAQ:RIVN). Government policy could boost U.S. demand for clean-energy vehicles. Ultimately, Rivian stock will prove to be a brilliant investment despite trade-war tensions — or perhaps, even because of those tensions.
Serious clean-energy investors should be glad to learn about Rivian Automotive’s new solar-sector partnership. It’s another reason to grab some Rivian shares while they’re still cheap, before the opportunity disappears like the setting sun.
Rivian Teams Up for Solar Power in Illinois
As you may have heard, a department of the State of Illinois is providing an $827 million incentive package to help Rivian Automotive build an EV-production facility in that state. Now, clean-energy advocates can celebrate as Rivian forms a partnership to power its Illinois factory with solar energy.
Here’s the scoop. Pivot Energy, a renewable-energy provider, is teaming up with Rivian Automotive “on a total of 60 Megawatts of solar energy.” Per the agreement, Rivian will “subscribe to 10 MWdc of community solar from Pivot Energy for its Illinois manufacturing facility.”
Rivian Automotive’s long-term objective is to “run on 100% renewable energy annually” by the year 2030. Certainly, the automaker’s agreement with Pivot Energy represents a step in that direction.
Could Rivian’s shift to solar power result in significant cost savings? It won’t happen overnight, but Rivian Automotive appears to be making an investment now that will save energy and capital later on.
Tough Tariffs Should Benefit Rivian Automotive
Notably, The Wall Street Journal identified Rivian stock as one that got a boost from the Biden administration’s announcement of tariffs on Chinese products. Those products include China-manufactured EVs and solar panels imported into the U.S.
The tariffs should benefit U.S.-based businesses like Rivian Automotive because it will be easier for them to compete against Chinese companies that manufacture cheaper products. Reportedly, the Biden administration is raising tariffs on Chinese EVs to around 100%.
Former president and current presidential candidate Donald Trump claims that he would impose even higher tariffs on China-made EVs. “I will put a 200% tax on every car that comes in from those plants,” Trump declared recently.
Call the situation contentious if you’d like, but it undoubtedly benefits Rivian. It might not feel good to invest in a trade war, but the current situation appears to heavily favor Rivian Automotive.
Rivian Stock: Anything Close to $10 Is a Buy
I’ve recommended investing in Rivian Automotive before, and I’m even more bullish now. For better or for worse, Rivian should benefit from tariffs on China-made EVs. The automaker is taking solar power seriously with its Pivot Energy partnership.
Someday, I expect the Rivian Automotive share price to be much higher than it is today. If Rivian stock is at, below or anywhere near $10, it’s time to start buying. Later on, you can re-evaluate your share position when the price has doubled or tripled.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
