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Rivian Craters 14% on 75M Share Offering, Lucid Falls 9% as EV Rally Reverses
The offering could raise about $1.5 billion and adds dilution as Rivian funds a Department of Energy loan and its R2 rollout.
- On Monday, July 6, Rivian Automotive announced a public offering of 75 million shares of Class A common stock to fund equity contributions for a U.S. Department of Energy loan.
- The company plans to use proceeds from the offering to fund equity contributions under its amended $4.5 billion loan agreement with the Department of Energy for its Georgia manufacturing plant.
- Rivian recently reported strong second-quarter results, forecasting revenue between $1.55 billion and $1.65 billion, while delivering 12,194 vehicles and maintaining an estimated $5.3 billion in cash and equivalents.
- Shares of the electric vehicle maker slipped 9% in extended trading on Monday following the announcement, while the offering will increase outstanding shares, resulting in dilution for existing shareholders.
- CEO RJ Scaringe emphasized that volume from the new R2 SUV is critical to generating gross margins, though the company faces a long road toward sustained profitability amid competitive pressures.
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Rivian Craters 14% on 75M Share Offering, Lucid Falls 9% as EV Rally Reverses
Shares of Rivian (NASDAQ:RIVN) are down 14% in Tuesday morning trading, changing hands at $17 and change after the electric-vehicle maker priced a large secondary equity offering after Monday’s close. The move wipes out most of Rivian stock’s 23% one-month advance heading into the announcement. The selling has spread across the sector. Lucid (NASDAQ:LCID) stock ... Rivian Craters 14% on 75M Share Offering, Lucid Falls 9% as EV Rally Reverses
·New York, United States
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Rivian shares tumble 15% after EV maker announces 75 million share offering to repay loan
Shares of Rivian Automotive slumped 15% after announcing a sale of 75 million shares to repay a DOE loan. Alongside the capital raise, the company announced second-quarter revenue of $1.3 billion.
·New Delhi, India
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Coverage Details
Total News Sources23
Leaning Left4Leaning Right1Center9Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
L 29%
C 64%
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