Rivian stock falls 13% as company sells 75 million shares to raise capital
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- Rivian stock plunged 13% in early Tuesday trading after the EV maker unveiled a public offering of 75 million Class A shares; shares had risen 8.1% Monday and 19% the prior week.
- At Monday's $20.14 close, the 75-million-share sale would raise roughly $1.51 billion, earmarked for equity contributions tied to a U.S. Department of Energy loan; underwriters also received a 30-day option on up to 11.25 million additional shares.
- Rivian has suspended its 2027 profitability target, citing an expected surge in R&D spending on autonomy and next-generation vehicle technology.
- The R2 midsize SUV is launching now, with the company pinning late-decade profitability hopes on the model.
- Second-quarter revenue is tracking $1.55 billion to $1.65 billion — above LSEG-compiled analyst estimates of $1.45 billion — per a pre-release filed alongside the offering.
- Cash, cash equivalents, and short-term investments climbed to an estimated $5.3 billion, up from $4.8 billion at the end of Q1.
Why it matters: Rivian, sitting on $5.3 billion in cash with Q2 revenue tracking above the $1.45 billion analyst estimate, is selling 75 million new shares to fund equity tied to a Department of Energy loan — a dilution move timed right after the stock rallied 19% the prior week.
