Beyond the dilution of equity, the company signaled financial pressure stemming from its core business operations. Management warned that a decrease in the average selling price of its vehicles would likely dampen second-quarter results. Rivian projects revenue for the period ending June 30 to fall between $1.55 billion and $1.65 billion.
In section Market Quotes
Rivian Shares Slide Following Stock Offering and Revenue Warning
Rivian shares tumbled 12% to $17.73 after the electric vehicle manufacturer announced a 75-million-share public offering to settle a federal loan. The move, aimed at satisfying a debt to the U.S. Energy Department, coincides with a broader downward trend that has seen the company’s stock value drop 9.2% this year.
To facilitate the capital raise, the company is granting underwriters a 30-day window to purchase an additional 11.25 million shares. Investors reacted sharply to the dual news of equity dilution and lowered revenue expectations, reflecting ongoing market sensitivity toward the company’s path to profitability.
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