Rivian Automotive NASDAQ:RIVN, an electric vehicle maker, saw its shares slide around 14% on Tuesday after the company announced a 75 million-share common stock offering, marking the stock's biggest one-day decline since November 2024.
The company said underwriters are expected to receive a 30-day option to purchase up to an additional 11.25 million shares. Rivian plans to use proceeds to help fund equity contribution requirements under its U.S. Department of Energy loan, a development that investors may view as a near-term dilution concern.
The offering overshadowed a stronger preliminary second-quarter outlook, with Rivian forecasting revenue of $1.55 billion to $1.65 billion, ahead of analysts' average estimate of $1.44 billion. The company also expects to end June with about $5.3 billion in cash and equivalents, up from $4.8 billion at the end of the first quarter, though the stock is now down about 11% so far this year after Tuesday's decline.