Rivian drops nearly 15% after launching $1.5 billion share sale
What's new: The EV maker tied the raise to a U.S. Energy Department loan deal as it ramps spending on autonomy and its R2 SUV.
Rivian Automotive shares fell nearly 15% in midday trading Tuesday after the electric vehicle maker launched a public offering of 75 million Class A shares, a sale worth about $1.51 billion based on Monday's closing price. The company said the proceeds would fund equity contributions tied to a loan agreement with the U.S. Department of Energy. Rivian also gave underwriters 30 days to buy up to 11.25 million additional shares. The capital raise follows Rivian's decision to drop its 2027 profitability target because of higher research-and-development spending on autonomy and next-generation vehicles. In a separate filing, Rivian estimated second-quarter revenue of $1.55 billion to $1.65 billion, above LSEG analyst estimates of $1.45 billion, and said cash and short-term investments rose to about $5.3 billion.