Rivian stock falls 18% as company sells 75 million shares to raise capital
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Rivian stock plunged 18% on Tuesday after announcing a public offering of 75 million Class A shares — its worst day since 2024 and fifth worst on record — following an 8.1% gain Monday and a 19% rise last week.
- Rivian would raise roughly $1.51 billion at Monday's close of $20.14 per share, with underwriters granted a 30-day option to purchase up to 11.25 million additional shares.
- Rivian said in its filing that proceeds will fund equity contributions as part of a loan agreement with the U.S. Department of Energy.
- Rivian suspended its 2027 profitability target due to an expected spike in R&D spending for autonomy and next-generation vehicle technologies, the raise coming as it launches the new R2 midsize SUV aimed at driving late-decade profitability.
- Rivian pre-released Q2 results estimating revenue between $1.55 billion and $1.65 billion, above the $1.45 billion average analyst estimate compiled by LSEG.
- Rivian reported an estimated $5.3 billion in cash, cash equivalents, and short-term investments, up from $4.8 billion at the end of Q1.
Why it matters: Rivian is tapping public markets for $1.51 billion just to meet DOE loan requirements, signaling that government-backed financing alone won't cover its R&D appetite for autonomy tech and the R2 platform. The 18% single-day wipeout — its worst since 2024 — came even as Q2 revenue was tracking above analyst estimates, showing investors are penalizing dilution over operational beats.
