Rivian Automotive NASDAQ:RIVN fell 12.47% intraday after the electric vehicle maker launched a 75 million share public offering that would raise approximately $1.5 billion based on Monday's closing price of $20.14. The proceeds are earmarked for equity contributions under a DOE loan agreement tied to Rivian's Georgia plant, which will house expanded R2 production.
The offering overshadowed a genuine positive. Rivian guided Q2 revenue to $1.55 billion to $1.65 billion, above the LSEG consensus of $1.45 billion, and reported cash and equivalents of $5.3 billion at end of June, up from $4.8 billion at Q1 close. A spokesperson told Reuters the market rally made it "the right time for Rivian to secure additional funding," a candid acknowledgment that the offering is opportunistic.
Full Q2 results are due July 30, where margin and cash burn data will be the next test.
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