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. Rivian in a public filing said 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. This is breaking news. Check back for additional details.