Rivian shares fell nearly 15% after the company announced a follow-on offering of about $1.5 billion

Shares of electric vehicle maker Rivian fell nearly 15% on Tuesday, July 7, after the company announced the previous day that it would issue an additional 75 million Class A shares. According to CNBC, based on the previous session’s closing price, Rivian could raise about $1.5 billion through this offering.

The company announced that it plans to use the proceeds to finance its obligations under a loan agreement with the U.S. Department of Energy. In addition to this offering, the underwriters will receive an option from Rivian to purchase up to 11.2 million additional shares of the company within 30 days.

At the same time, Rivian released preliminary results for the second quarter of 2026. The company expects revenue in the range of $1.55–1.65 billion, which is 13% higher than the consensus estimate of analysts surveyed by LSEG, CNBC notes. At the end of the second quarter, the company had cash and cash equivalents of approximately $5.3 billion, a 10% increase from the previous quarter.

Rivian’s stock showed a similar trend a few days after the company abandoned its goal of becoming profitable by 2027, citing expected increases in R&D costs for autonomous driving technology and next-generation vehicles, CNBC reports. The company also unveiled its new mid-size electric SUV, the R2, which it hopes will help it achieve profitability by the end of the decade.

Over the past 12 months, Rivian’s stock has risen by nearly 35%, but is down about 13% year-to-date. Last week, the automaker’s stock price was buoyed by the release of preliminary second-quarter delivery figures. Amid rising gasoline prices in the U.S. due to the war in the Middle East, Rivian delivered more electric vehicles than analysts had expected and raised its delivery forecast for all of 2026 to 65,000–70,000 vehicles.

Nevertheless, according to data compiled by MarketWatch, the consensus among analysts regarding the company’s stock remains moderately positive: of 27 analysts, 13 recommend buying Rivian shares, 10 maintain a neutral “Hold” rating, and four advise selling. The average price target is $18.50 per share—7.8% below the closing price on July 6.

This article was AI-translated and verified by a human editor