Rivian stock falls 10% as company sells 75 million shares to raise capital

Rivian Automotive stock was down by more than 10% during premarket trading on Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.

The capital raise occurred during extended hours trading. Rivian shares rose 8.1% on Monday after increasing 19% last week.

Based on Monday's close of $20.14 per share, Rivian would raise roughly $1.51 billion with the offering. Rivian ​said in a filing that it plans to use the proceeds ​to fund equity contributions as part of a loan ⁠agreement with the U.S. Department of Energy.

Rivian said in the public filing that it intended to grant underwriters an option for a period of 30 days to purchase up to an additional 11.25 million shares.

The raise follows Rivian suspending plans for a 2027 profitability target due to an expected spike in research and development spending for autonomy and next-generation vehicle technologies.

Rivian also pre-released some second-quarter results in a separate public filing. The company estimated revenue to be between $1.55 billion and $1.65 billion during the second quarter, above average analyst estimates compiled by LSEG of $1.45 billion.

Its cash, cash equivalents and short-term investments balance was an estimated $5.3 billion, up from $4.8 billion to end the first quarter, according to the filing.