Rivian raised $1.2 billion by selling 75 million shares at $15.50, sparking dilution concerns amid high cash burn.
Rivian (NASDAQ: RIVN) stock declined 12.3% in July after the company sold 75 million new shares at $15.50 each, raising $1.2 billion. Underwriters may purchase an additional 11.25 million shares, further diluting existing shareholders.
The capital raise follows Rivian’s projection of $1.7 billion to $1.8 billion in 2026 capital expenditures as it scales production of its R2 vehicle. The company cited general corporate needs and equity contributions for a U.S. Department of Energy loan.
Investors reacted negatively to the dilution and the company’s ongoing cash burn, questioning its path to profitability in a challenging EV market.