US Stock Market Move | Announced an additional issuance of 75 million shares to raise approximately $1.5 billion. Rivian Automotive (RIVN.US) plummeted nearly 15%.

On Tuesday, the stock price of the American electric vehicle manufacturer Rivian Automotive (RIVN.US) plummeted, with the stock falling nearly 15% to $17.14 as of the time of writing. On the news front, the company announced plans to publicly issue 75 million shares of Class A common stock to raise funds to support future development. The issuance plan was announced after the market closed on Monday. That day, Rivian's stock price rose 8.1%, following a cumulative increase of 19% the previous week. Based on the closing price of $20.14 on Monday, the issuance is expected to raise approximately $1.51 billion. According to documents filed with the U.S. Securities and Exchange Commission (SEC), Rivian plans to use the funds raised to fulfill equity contribution obligations under a loan agreement with U.S. Energy Corp. Additionally, the company will grant underwriters a 30-day option to purchase up to an additional 11.25 million shares of Class A common stock. This financing comes as Rivian increases its investment in next-generation electric vehicles and autonomous driving technology. Previously, the company announced that it would temporarily suspend its previously proposed profit target for 2027 due to anticipated increases in spending on autonomous driving and new vehicle development. At the same time, Rivian is advancing its plans to launch the new R2 midsize SUV. The company hopes that this new mass-market model will serve as a growth engine in the future and help the company achieve sustained profitability before the end of the century. In addition to announcing the fundraising plan, Rivian also disclosed some second-quarter performance data ahead of schedule. The company expects second-quarter revenue to be between $15.5 billion and $16.5 billion, higher than the average analyst expectation of $14.5 billion from LSEG. As of the end of the second quarter, Rivian's cash, cash equivalents, and short-term investments are estimated to be around $5.3 billion, higher than the $4.8 billion at the end of the first quarter of this year, indicating further strengthened liquidity for the company.