Rivian Stock Falls 18% After $1.5 Billion Share Offering

Rivian (RIVN) shares fell 18% after the electric vehicle maker announced plans to raise approximately $1.5 billion through a public offering of 75 million Class A common shares.

The capital raise comes as the company invests heavily in next-generation technologies and ramps production of its new R2 SUV, while also reporting preliminary second-quarter revenue that topped analyst expectations.

Capital raise to support future investments

Rivian announced plans to sell 75 million shares of Class A common stock, with the offering expected to generate roughly $1.51 billion based on the company’s previous closing share price of $20.14.

The automaker also said it would grant underwriters a 30-day option to purchase up to an additional 11.25 million shares, potentially increasing the amount raised, according to CNBC.

According to a regulatory filing, Rivian plans to use the proceeds to fund equity contributions tied to its loan agreement with the U.S. Department of Energy.

The offering follows a strong run for Rivian’s stock, which had climbed more than 19% during the previous week and gained another 8.1% on Monday before the capital raise was announced.

The company recently withdrew its previous goal of achieving profitability in 2027, citing increased investment in autonomous driving technology and future vehicle platforms.

Preliminary results exceed expectations

Alongside the share offering, Rivian released preliminary financial results for the second quarter.

The company expects revenue between $1.55 billion and $1.65 billion, exceeding analysts’ average estimate of approximately $1.45 billion.

Rivian also estimated its cash, cash equivalents, and short-term investments totaled approximately $5.3 billion at the end of the quarter, up from $4.8 billion reported at the close of the first quarter.

The additional capital is expected to support Rivian’s long-term growth strategy as it ramps production of the R2 midsize SUV, a model widely viewed as critical to expanding the company’s customer base and moving it closer to sustained profitability later this decade.

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