Rivian R1s and R1t electric vehicles at a dealership and service center in San Francisco. (David Paul Morris/Bloomberg)
key takeaways:
- Rivian shares fell more than 14% on July 7 after the EV maker announced it was selling 75 million shares.
- The offering will raise approximately $1.5 billion at Rivian’s July 6 closing price and will help fund the Department of Energy’s debt-related contribution.
- The offering was expected to be priced after the market closed on July 7, with Rivian hoping to exit the debt in early 2027.
Rivian Automotive’s stock fell the most in more than a year after the electric vehicle maker said it would sell 75 million shares to fund an equity contribution related to the Energy Department loan.
According to one, Goldman Sachs Group is the leader in share sales filed With the US Securities and Exchange Commission on July 6. At a closing price of $20.14 per share, the offering will raise approximately $1.5 billion.
The filing shows Rivian intends to use the proceeds for purposes including making contributions under an amended loan agreement with the Department of Energy. The automaker has a $4.5 billion loan after renegotiations with the department and expects to start paying it off in early 2027.
Rivian shares fell more than 14% after markets opened in New York on July 7, the biggest intraday decline since November 2024. Its stock has risen 2.2% this year as of July 6, giving it a market value of about $25.4 billion.
With the offering, Rivian is able to take advantage of the stock’s recent rally, driven in part by strong quarterly delivery results and interest in its new low-cost R2 line of SUVs, a product line widely seen as key to Rivian’s profitability. company raised Its full-year guidance last week said it now expects to deliver 65,000 to 70,000 vehicles this year, exceeding Wall Street expectations.
Rivian delivered 12,194 vehicles in its second quarter, more than Wall Street expected, after uneven sales in several quarters. It also produced 12,613 vehicles, exceeding expectations.
The company said in a July 6 filing that it expects second-quarter revenue of $1.55 billion to $1.65 billion, above the average estimate by analysts of $1.44 billion.
The results are helping the automaker move past a difficult period marked by rising expenses, supply chain issues and slowing demand for EVs. Rivian is seeking to control costs with steps including layoffs.
The company has also been unlocking funding through strategic partners in recent years. Volkswagen Group, now Rivian’s largest shareholder, is expected to invest up to $5.8 billion in the EV maker over several years, and has already invested about $3 billion as part of a joint venture between the companies. Uber Technologies announced in March that it would invest up to $1.25 billion by 2031 as the companies partner to deploy robotaxis.
The offering is expected to be priced after the market close in New York on July 7, according to terms of the deal seen by Bloomberg News.
Written by Kara Carlson, Anthony Hughes and Ed Ludlow
