Rivian Automotive NASDAQ:RIVN shares fell nearly 10% in Tuesday trading after the electric vehicle maker unveiled plans to sell 75 million Class A common shares and released preliminary second-quarter financial figures.
Rivian said the offering includes a 30-day option for underwriters to purchase up to 11.25 million additional shares. Based on the July 6 closing price, the base transaction could raise about $1.5 billion.
The company said the proceeds are expected to support general corporate purposes, including equity contributions tied to its U.S. Department of Energy loan agreement for the Georgia manufacturing facility.
Separately, Rivian estimated second-quarter revenue of $1.55 billion to $1.65 billion, compared with $1.30 billion in the same period last year. The increase was driven mainly by stronger vehicle deliveries, along with higher software development, electrical architecture, and regulatory credit revenue, though a greater mix of commercial vans weighed on average selling prices. Cash, cash equivalents, and short-term investments were estimated at about $5.3 billion as of June 30.
Rivian is scheduled to report full second-quarter financial results on July 30.