- Rivian Automotive plans to issue $1.5 billion in convertible notes.
- Rivian said it expects its third-quarter revenue to come in between $1.29 billion and $1.33 billion, according to Wall Street estimates.
- Sep. It also estimates it has cash and equivalents of $9.1 billion at 30.
Taylor Riven electric trucks are seen at the auto maker’s newly opened storefront in Manhattan’s Meatpacking District on June 23, 2023 in New York City.
Spencer Platt | Good pictures
Rivian Automotive shares fell sharply in early trading Thursday after the company surprised investors with a plan to issue $1.5 billion in convertible notes.
It also gave a preliminary estimate of its third-quarter earnings, in line with Wall Street estimates.
Shares were down 16% as of 10 am.
In a regulation Filing Late Wednesday, Rivian said it expects its third-quarter revenue to come in between $1.29 billion and $1.33 billion, in line with Wall Street estimates of roughly $1.3 billion, according to LSEG, formerly Refinitiv.
Sep. Rivian also estimated cash and equivalents at $9.1 billion at the end of the second quarter, 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 a 6% layoff in February and the sale of $1.3 billion in convertible notes in March. The company delayed the launch of its upcoming compact R2 vehicle platform from 2025 to 2026. But news of the latest offering came as a surprise to investors.
Rivian plans to issue $1.5 billion in senior, unsecured “green” convertible notes due 2030. Buyers will have the option to purchase an additional $225 million worth of notes. The company said.
Rivian reported on Monday that third-quarter deliveries were better than Wall Street had expected. The EV maker will report its third-quarter earnings after US markets close on November 7.
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Rivian stock sinks after EV maker announces convertible note offering