Rivian raises $1.2 billion via 75 million new shares at a steep discount, signaling ongoing cash burn and dilution concerns.
Rivian Automotive (NASDAQ: RIVN) shares fell 18.1% on July 7, marking its largest single-day drop since November 2024. The decline followed a $1.2 billion common-stock offering priced at $15.50 per share, below market value, to fund operations and a U.S. Department of Energy loan arrangement.
The company had recently raised its full-year delivery outlook to 65,000-70,000 vehicles after reporting 12,194 second-quarter deliveries. Rivian also granted underwriters an option to purchase an additional 11.25 million shares, further diluting existing shareholders.
The offering underscores Rivian’s ongoing cash burn, despite recent production gains, and weighed on investor sentiment.