A motherboard from one of Rivian’s fully electric vehicles.
Michael Wayland/CNBC
Rivian Automobile stock plunged nearly 15% midday Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.
The capital raise took place during extended trading hours after Rivian shares rose 8.1% on Monday. The stock also rose 19% last week.
Based on a closing price of $20.14 per share on Monday, Rivian could raise approximately $1.51 billion through this offering. Rivian said in a filing that it plans to use the proceeds to fund equity contributions under a loancontract with the US Department of Energy.
Rivian said in the public filing that it intends to grant the underwriters an option for a period of 30 days to purchase up to 11.25 million additional shares.
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Rivian Action
The relaunch follows Rivian suspend plans for a profitability target by 2027 due to an expected increase in research and development spending for autonomy and next-generation automotive technologies.
This also comes as Rivian launches its new R2 mid-size SUV, which the company hopes will lead it to profitability towards the end of this decade.
Rivian also previewed some second-quarter results in a separate public filing. The company estimated second-quarter revenue of $1.55 billion to $1.65 billion, higher than the average analyst estimate compiled by LSEG of $1.45 billion.
Its balance of cash, cash equivalents and short-term investments was estimated at $5.3 billion, up from $4.8 billion at the end of the first quarter, according to the filing.