Rivian Automotive Plans to Offer $1.5 Billion in Convertible Notes, Shares Dip

Shares of Rivian Automotive, the electric vehicle (EV) maker, experienced a decline in early trading on Thursday following the company’s announcement of its plan to offer $1.5 billion in convertible notes. The preliminary estimate of Rivian’s third-quarter revenue, ranging between $1.29 billion and $1.33 billion, was also disclosed in a regulatory filing late Wednesday. This projection aligns with Wall Street estimates of approximately $1.3 billion, according to LSEG.

Despite the dip in shares, Rivian reported better-than-expected third-quarter deliveries earlier this week. The company is set to release its third-quarter earnings after the U.S. markets close on November 7.

Rivian intends to issue senior, unsecured “green” convertible notes due in 2030, with an option for buyers to acquire up to an additional $225 million worth of notes. As of September 30, Rivian’s cash and equivalents were estimated to be $9.1 billion.

While the news of the convertible notes offering impacted the stock price, Rivian’s continued growth and positive delivery numbers demonstrate the company’s strong position in the EV market. Investors will be eagerly awaiting the release of the third-quarter earnings report to gain further insights into Rivian’s performance.