A motherboard from one of Rivian's all-electric vehicles.
Michael Wayland/CNBC
Rivian Automotive Shares plunged nearly 15% in midday trading Tuesday after the electric vehicle maker announced a public offering of 75 million shares of Class A common stock.
The capital raise occurred during extended trading hours after Rivian shares rose 8.1% on Monday. The stock also rose 19% last week.
Based on Monday's close of $20.14 per share, Rivian would raise approximately $1.51 billion from the offering. Rivian said in a filing that it plans to use the proceeds to fund capital contributions as part of a loan agreement with the U.S. Department of Energy.
Rivian said in the public filing that it intended to grant the underwriters an option for a period of 30 days to purchase up to 11.25 million additional shares.
rivian actions
The increase comes after Rivian suspended its plans for a 2027 profitability target due to an expected increase in research and development spending for autonomy and next-generation vehicle technologies.
It also comes as Rivian launches its new R2 midsize SUV, which the company hopes will drive it to profitability by the end of this decade.
Rivian also previously released some second-quarter results in a separate public filing. The company estimated revenue to be between $1.55 billion and $1.65 billion during the second quarter, above the average of analyst estimates compiled by LSEG of $1.45 billion.
Its balance of cash, cash equivalents and short-term investments was estimated at $5.3 billion, up from $4.8 billion at the end of the first quarter, according to the filing.
