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Rivian plans 75 million-share sale tied to DOE loan
Stock has worst intraday drop since 2024
Key Takeaways:
- Rivian shares fell more than 14% July 7 after the EV maker said it would sell 75 million shares.
- The offering would raise about $1.5 billion at Rivian’s July 6 closing price and help fund Department of Energy loan-related contributions.
- The offering was expected to price after markets closed July 7, with Rivian expecting to draw from the loan in early 2027.
Rivian Automotive's stock tumbled the most in more than a year after the electric vehicle maker said it will sell 75 million shares to fund equity contributions related to a Department of Energy loan.
Goldman Sachs Group is leading the share sale, according to a filing July 6 with the U.S. Securities and Exchange Commission. At the closing price of $20.14 per share, the offering would raise about $1.5 billion.
Rivian intends to use the proceeds for purposes including making contributions under the amended loan agreement with the Department of Energy, the filing shows. The vehicle maker has a $4.5 billion loan after renegotiating with the department and expects to start drawing from it in early 2027.
Shares of Rivian fell more than 14% after the markets opened July 7 in New York, the biggest intraday decline since November 2024. Its stock has increased 2.2% this year through the close of July 6, giving it a market value of about $25.4 billion.
With the offering, Rivian is able to capitalize on a run-up in the stock in recent days, fueled in part by strong quarterly delivery results and interest in its new lower-cost R2 line of SUVs, a product line widely seen as key to Rivian’s profitability. The company raised its full-year guidance last week, saying it now expects to deliver between 65,000 and 70,000 vehicles this year, exceeding Wall Street’s expectations.
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Rivian delivered 12,194 vehicles in its second quarter, more than the roughly 10,600 Wall Street had expected, after several quarters of uneven sales. It also produced 12,613 vehicles, ahead of expectations.
The company said in the July 6 filing that it anticipates second-quarter revenue of $1.55 billion to $1.65 billion, ahead of the average $1.44 billion predicted by analysts.
The results are helping the automaker move past a difficult stretch marked by rising expenses, supply chain issues and tepid demand for EVs. Rivian has been 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 into 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 as much as $1.25 billion through 2031 as the companies partner to deploy robotaxis.
The offering is expected to price after the market closes 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
