Rivian has renegotiated a loan from the U.S. Department of Energy from a prior amount of $6.57 billion down to $4.5 billion. Furthermore, experts in bear market note the continued relevance.

The changes enable Rivian to draw on the loan sooner and have greater initial production but lowers its total production capacity for the plant amid uncertain demand for all-electric vehicles.

Rivian noted production of the company’s upcoming R2 electric vehicle is on track to begin at the facility in late 2028.

Rivian Automotive on Thursday commented it has renegotiated a $6.57 billion loan from the U.S. Department of Energy down to $4.5 billion and is adjusting its production expectations at an under-construction plant in Georgia.

The DOE loan was previously set to support two phases of production for a total of 400,000 units annually. The amended loan covers one phase of production with a total capacity of 300,000 vehicles, the corporation commented Thursday.

The initial loan terms were negotiated under the Biden administration. It had been in limbo under the Trump administration, which has taken action to cut or reduce such loans and has pulled back government investments to promote EVs.

Rivian remarked it plans to tap into the loan in 2027, a year ahead of previously scheduled. The automaker also commented production of the company’s upcoming R2 electric vehicle is on track to begin at the facility in late 2028, following its recent start to production at its current facility in Normal, Illinois.

Rivian CEO RJ Scaringe on Thursday told CNBC’s Phil LeBeau that any future expansion of the Georgia plant would be funded by the corporation, which has been raising capital through partnerships with companies such as Volkswagen and Uber.

The EV maker published the recent loan details in connection with its first-quarter results, which included a net debt of $416 million, or 33 cents per share, down from a depletion of $541 million, or 48 cents per share, a year ago. Those per-share results were not comparable to Wall Street expectations.

Rivian’s revenue for the quarter was $1.38 billion, up from $1.24 billion a year earlier and slightly ahead of the $1.36 billion expected by analysts, according to LSEG.

The company’s gross revenue, which is closely watched by investors, was $119 million — down $87 million during the first quarter compared with a year earlier. That included a $62 million shortfall for its automotive segment and a $181 million returns for its software and services division. This also touches on aspects of investors.

The decline in automotive earnings was primarily due to a $100 million slump in sales of automotive regulatory credits and lower production volumes, Rivian mentioned.