{"id":67941,"date":"2024-05-08T12:38:41","date_gmt":"2024-05-08T17:38:41","guid":{"rendered":"https:\/\/olduvai.ca\/?p=67941"},"modified":"2024-05-08T12:38:41","modified_gmt":"2024-05-08T17:38:41","slug":"pritzker-doubles-down-with-827-million-of-taxpayer-money-for-expansion-by-troubled-electric-vehicle-maker-rivian-wirepoints","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=67941","title":{"rendered":"Pritzker doubles down with $827 million of taxpayer money for expansion by troubled electric vehicle maker, Rivian \u2013 Wirepoints"},"content":{"rendered":"
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Pritzker doubles down with $827 million of taxpayer money for expansion by troubled electric vehicle maker, Rivian \u2013 Wirepoints<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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At $1.5 million per job, this new incentive package from the state is at least 15 times the norm. For this much money, the state could have just handed out a million bucks to 827 people, instead of creating 550 jobs.<\/p>\n

Gov. JB Pritzker\u00a0announced<\/a>\u00a0Thursday that the State of Illinois will provide an $827 million incentive package for Rivian to invest $1.5 billion to expand its electric vehicle factory in Normal, Illinois. The expansion is expected to create at least 550 full-time jobs within the next five years, and will build Rivian\u2019s next model EV, the R2. Rivian initially got $49.5 million under Gov. Bruce Rauner in 2017 to create 1,000 jobs at the same location.<\/p>\n

The new deal gives $1.5 million per job created, which is astronomical in the world of location incentives. Estimated average location incentives paid by state and local governments around the nation range from\u00a0$13,000<\/a>\u00a0to\u00a0$84,000 per job<\/a>, though sometimes go as high as\u00a0$100,000<\/a>\u00a0per job for capital intensive projects. Even using that high end, Rivian\u2019s package will be 15 times what\u2019s typical.<\/p>\n

Moreover, Rivian is on shaky wheels, along with the rest of the U.S. EV industry.\u00a0Rivian loses<\/a>\u00a0over $43,000 for every vehicle it sells and has had two rounds of layoffs this year. The decision to move its R2 production to Illinois is a further reflection of the company\u2019s\u00a0need to preserve cash<\/a>. R2 production was initially planned for a new $5 billion plant in Georgia, heavily subsidized by the state. But Rivian concluded that moving production to the existing Illinois facility would save cash.<\/p>\n

Its stock price has consequently been hammered. It reached a high of $172 per share in 2021 but now trades at less than $10 per share.<\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Pritzker doubles down with $827 million of taxpayer money for expansion by troubled electric vehicle maker, Rivian \u2013 Wirepoints At $1.5 million per job, this new incentive package from the state is at least 15 times the norm. For this much money, the state could have just handed out a million bucks to 827 people, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13275,16000,22227,34499,29007],"class_list":["post-67941","post","type-post","status-publish","format-standard","hentry","category-economics","tag-electric-vehicles","tag-evs","tag-mark-glennon","tag-rivian","tag-wirepoints"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67941"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67941\/revisions"}],"predecessor-version":[{"id":67942,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67941\/revisions\/67942"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}