Rivian’s stock dropped sharply by 18% in Tuesday trading after the electric vehicle maker announced a public offering of 75 million shares of Class A common stock. This significant capital raise, which occurred after the stock had gained over 8% the previous day and nearly 19% over the past week, marks the company’s largest single-day percentage decline since 2024. The planned share sale is expected to generate approximately $1.51 billion based on Monday’s closing price of $20.14 per share, with an option for underwriters to purchase an additional 11.25 million shares within 30 days.

The proceeds from this equity offering are intended to support Rivian’s equity contributions under a loan agreement with the U.S. Department of Energy. This financial move comes as the company recently paused its original goal of achieving profitability by 2027, citing increasing investments in research and development to advance autonomous driving and next-generation vehicle technologies. Rivian hopes its new R2 midsize SUV, a key product launch expected to drive growth, will help push the company toward profitability by the end of the decade.

Alongside the capital raise, Rivian pre-released second-quarter financial results indicating revenue between $1.55 billion and $1.65 billion. This figure exceeds the consensus analyst estimate of $1.45 billion, signaling strong top-line performance despite ongoing challenges. The company’s cash, cash equivalents, and short-term investments rose to an estimated $5.3 billion, up from $4.8 billion at the close of the first quarter, reflecting its solid liquidity position.

Overall, Rivian’s latest equity offering and financial disclosure highlight its ongoing efforts to fund growth and development while managing a shifting timeline for profitability. Investors reacted negatively to the share sale announcement, yet the revenue beat and healthy cash balance could provide a foundation for the company’s future technological advancements and market expansion.