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Rivian stock falls 12% amid plans to sell 75 million shares
CNBC • • general
Key Points:
- Rivian Automotive's stock dropped over 10% in early trading after announcing a public offering of 75 million shares of Class A common stock, aiming to raise approximately $1.51 billion based on Monday's closing price.
- The company plans to use the proceeds to fund equity contributions related to a loan agreement with the U.S. Department of Energy and has granted underwriters a 30-day option to purchase an additional 11.25 million shares.
- This capital raise follows Rivian's suspension of its 2027 profitability target due to increased research and development spending on autonomous and next-generation vehicle technologies.
- Rivian is launching its new R2 midsize SUV, which it hopes will drive profitability toward the end of the decade.
- The company pre-released Q2 revenue estimates between $1.55 billion and $1.65 billion, surpassing analyst expectations, and reported an estimated cash balance of $5.3 billion, up from $4.8 billion at the end of Q1.
