A motherboard from one of Rivian’s fully electric vehicles.
Michael Wayland/CNBC
Rivian Automobile stock plunged nearly 15% midday Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.
The capital raise took place during extended trading hours after Rivian shares rose 8.1% on Monday. The stock also rose 19% last week.
Based on a closing price of $20.14 per share on Monday, Rivian could raise approximately $1.51 billion through this offering. Rivian said in a filing that it plans to use the proceeds to fund equity infusions under a loan agreement with the U.S. Department of Energy.
Rivian said in the public filing that it intends to grant the underwriters an option for a period of 30 days to purchase up to 11.25 million additional shares.
Rivian Action
The increase follows Rivian suspending its 2027 profitability target due to an expected increase in research and development spending for autonomy and next-generation automotive technologies.
It also comes as Rivian launches its new R2 mid-size SUV, which the company hopes will lead it to profitability towards the end of this decade.
Rivian also previewed some second-quarter results in a separate public filing. The company estimated second-quarter revenue of $1.55 billion to $1.65 billion, higher than the average analyst estimate compiled by LSEG of $1.45 billion.
Its balance of cash, cash equivalents and short-term investments was estimated at $5.3 billion, up from $4.8 billion at the end of the first quarter, according to the filing.