Rivian all-electric vehicle motherboard.
Michael Weiland/CNBC
Rivian Automotive Shares fell 18% on Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.
Tuesday’s stock performance was the worst since 2024 and the fifth-worst day on record.
The capital increase was made during after-hours trading after Rivian shares rose 8.1% on Monday. The stock rose 19% last week as well.
Based on Monday’s closing price of $20.14 per share, Rivian will raise approximately $1.51 billion in the offering. Rivian said in a filing that it plans to use the proceeds to fund an equity stake as part of a loan agreement with the U.S. Department of Energy.
Rivian said in a public filing that it intends to grant underwriters a 30-day option to purchase up to 11.25 million additional shares.
Rivian stock
The increase comes after Rivian paused plans for its 2027 revenue target due to an expected surge in research and development spending for self-driving and next-generation vehicle technologies.
This also coincides with Rivian’s launch of a new mid-sized SUV, the R2, which the company hopes will lead to improved profitability towards the end of this decade.
Rivian also pre-announced some of its second-quarter financial results in a separate public document. The company expects second-quarter sales of $1.55 billion to $1.65 billion, higher than the average analyst estimate of $1.45 billion compiled by LSEG.
The company had an estimated $5.3 billion in cash, cash equivalents and short-term investments, up from $4.8 billion at the end of the first quarter, according to the filing.
