Rivian (RIVN) surprised investors by announcing a new share offering after Monday’s close, a move that sent the stock slipping on Tuesday after recent positive momentum.
Rivian said it would offer up 75 million shares of Class A common stock, with underwriters holding a 30-day option to buy up to 11.25 million additional shares. Based on Rivian’s July 6 closing price of around $20, the base offering could raise around $1.5 billion, or roughly $1.7 billion including the overallotment option.
Rivian said proceeds will go toward general corporate purposes, including equity contributions tied to its Department of Energy loan arrangement supporting the company’s Georgia manufacturing buildout.
Rivian stock slid 10% in early trade on Tuesday.
Alongside the offering, Rivian disclosed preliminary second-quarter total revenue of between $1.55 billion and $1.65 billion, up from $1.30 billion a year earlier. Rivian attributed the increase primarily to higher vehicle deliveries, “partially offset by lower average selling prices resulting from a higher mix of commercial vans,” along with growth in vehicle electrical architecture, software development services, and regulatory credit revenues.
The company also estimated cash, cash equivalents, and short-term investments climbed to roughly $5.3 billion as of June 30, up from $4.8 billion at the end of the first quarter.
News of the share offering comes after a stretch of positive news for Rivian.
Earlier this month, the company reported second-quarter production of 12,613 vehicles and deliveries of 12,194 vehicles, both well ahead of Wall Street expectations and the company’s own prior guidance of 9,000 to 11,000 deliveries.
Those results come ahead of the delivery ramp for R2, Rivian’s new midsize SUV and expected volume seller. Factors like early R2 reviews and conversion of pre-orders likely led the company to raise its full-year 2026 delivery guidance to a range of 65,000 to 70,000 vehicles, up from 62,000 to 67,000 previously.
Investors will get more on financial metrics like profitability, margins, and cash burn, when Rivian reports full second-quarter results after the bell on July 30.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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