Rivian stock fell 18% amid plans to sell 75 million shares

Rivian Cars The stock fell 18% on Tuesday after the electric automaker announced a public offering of 75 million shares of its Class A common stock.

Tuesday’s stock movement was the worst since 2024 and the fifth-worst day on record.

The capital increase occurred during extended trading hours after Rivian shares rose 8.1% on Monday. The stock also rose 19% last week.

Based on Monday’s close of $20.14 per share, Rivian will raise approximately $1.51 billion through the offering. Rivian said in a filing that it plans to use the proceeds to fund equity contributions as part of a loan agreement with the U.S. Department of Energy.

Rivian said in a public filing that it intends to grant the underwriters a 30-day option to purchase up to 11.25 million additional shares.

The increase comes on the heels of Rivian suspending its plans for a 2027 profitability target due to an expected rise in R&D spending on autonomous driving and next-generation vehicle technologies.

It also comes as Rivian launches its new R2 midsize SUV, which the company hopes will lead it to profitability at the end of this decade.

Rivian also released some Q2 results previously in a separate public filing. The company estimated its revenue at between $1.55 billion and $1.65 billion during the second quarter, higher than the average analyst estimate compiled by LSEG of $1.45 billion.

The balance of cash, cash equivalents and short-term investments is estimated at $5.3 billion, up from $4.8 billion as of the end of the first quarter, according to the filing.