Rivian Automotive surprised investors with plans to issue $1.5 billion in convertible notes, sending its shares sharply lower in early trading Thursday.
It also provided a preliminary estimate of third-quarter revenue, in line with Wall Street estimates.
The stock was down 16% as of 10 a.m. ET.
in supervision Archive Late Wednesday, Rivian said it expected third-quarter revenue to be between $1.29 billion and $1.33 billion, roughly in line with Wall Street expectations of $1.3 billion, according to LSEG (formerly Refinitiv).
Rivian also estimated it had $9.1 billion in cash and equivalents as of Sept. 30, down from $10.2 billion at the end of the second quarter.
Rivian took steps earlier this year to slow spending and improve its balance sheet, including cutting 6% of its workforce in February and selling $1.3 billion of convertible notes in March. The company has also pushed back the launch of its upcoming small R2 car platform from 2025 to 2026. But news of the latest product surprised investors.
Rivian plans to issue $1.5 billion of senior unsecured “green” convertible notes due 2030. Buyers have the option to purchase an additional $225 million worth of notes, the company said.
Rivian on Monday reported third-quarter deliveries that beat Wall Street expectations. The electric vehicle maker will announce third-quarter earnings on November 7 after the U.S. stock market closes.
Shares of electric vehicle maker Rivian fell after the company announced an issuance of convertible notes.
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