Rivian Automotive, Inc. (NASDAQ: RIVN) saw its shares plummet 9.2% to $21.50 in extended trading Wednesday. This dramatic decline comes shortly after the electric vehicle maker made two significant announcements.
Rivian Automotive has unveiled plans to raise $1.5 billion through a convertible debt offering. The company will issue green convertible senior notes due in 2030 as a private offering to qualified institutional buyers. In addition, purchasers will have the option to acquire an extra $225 million in notes.
The issuance of convertible debt raises concerns among current shareholders, as it will dilute their interests in the company. This move follows disappointment earlier in the week when Rivian maintained its full-year guidance for producing 52,000 battery-electric vehicles this year.
Furthermore, the Irvine, California-based company revealed preliminary third-quarter revenue figures, which fell short of analyst expectations. Rivian expects its revenue for the three months ending September 30 to fall between $1.29 billion to $1.33 billion. This figure missed the mark compared to the $1.3 billion consensus estimate from analysts surveyed by Bloomberg.
Rivian Automotive, Inc. (NASDAQ: RIVN), known for manufacturing consumer electric vehicles and a plug-in delivery van for Amazon.com (NASDAQ: AMZN), is in a high-stakes battle with industry giant Tesla (NASDAQ: TSLA). However, the company has been grappling with supply-chain challenges and a slow ramp-up since its November 2021 initial public offering.
Rivian Automotive has scheduled the release of its official third-quarter financial results for November 7.