Rivian's stock is down 13% as Wall Street frets about the EV maker's cash troubles.
Rivian Automotive Inc (NASDAQ:RIVN) shares declined on Tuesday after the electric vehicle maker announced a public offering of common stock aimed at raising capital for general corporate purposes. The company said it has commenced an underwritten public offering of 75 million shares of common stock and expects to grant underwriters a 30-day option to purchase an additional 11.25 million shares.
Rivian Automotive Inc (RIVN) is sliding on Tuesday morning after the electric vehicle (EV) maker announced a sizable public offering of about 75 million shares. As sudden dilution fears take center stage, RIVN is reversing much of its recent gains from a stellar quarterly delivery report, reminding investors that its expansion plans remain rather expensive.
Rivian Automotive Inc (NASDAQ:RIVN) stock is among the notable Nasdaq Composite (IXIC) laggards today, down 11.1% to trade at $17.96, on track for its worst single-session decline since November 2024.
Rivian stock is doing well this month and beating its top rivals like Lucid and Tesla, helped by its strong vehicle delivery numbers. RIVN soared to $20.15 on Monday, its highest level since January 8.
The capital raise occurred during extended hours trading following Rivian shares increasing 8.1% on Monday after increasing 19.2% last week.
Investors slam the brakes on a recent rally, threatening to wipe out all of the EV maker's gains from the previous session.
Rivian said it expects to report revenues of between $1.55 billion and $1.65 billion in the second quarter, compared to analysts' estimates of $1.45 billion, according to LSEG data.
Shares of Rivian Automotive Inc. (RIVN) climbed more than 5% on Monday after JPMorgan raised its price target following the electric vehicle maker's stronger-than-expected second-quarter delivery results. The stock RIVN rose about 6% to $19.75 during trading, outperforming the broader market as investors reacted positively to the company's improved delivery outlook and growing optimism surrounding its new R2 vehicle platform.
Rivian Automotive launched the R2, marking a pivotal shift toward more affordable EVs and reigniting sales momentum. The EV manufacturer raised 2026 delivery guidance to 65K–70K vehicles, reflecting robust Q2 deliveries and improved production outlook. The stock trades at only ~2x 2026 sales targets, with valuation supported by strong positioning in the $50K midsize SUV/Crossover segment.
Wall Street analysts remain cautiously optimistic on Rivian Automotive (NASDAQ: RIVN), with the electric vehicle maker earning a consensus “Moderate Buy” rating despite expectations for limited upside over the next year.
The Form 4 flow at Rivian Automotive (NASDAQ:RIVN | RIVN Price Prediction) looks ugly at a glance.