Rivian shares tumble 15% after EV maker announces 75 million share offering to repay loan

Shares of electric vehicle maker Rivian Automotive slumped 15% in Tuesday's intraday trade, falling to $17.60 and reversing their recent gains after the company announced plans to sell 75 million common shares to help repay a loan from the US Department of Energy (DOE).

Rivian intends to use the proceeds for purposes including making contributions under the amended loan agreement with the Department of Energy, Bloomberg reported, citing the company's regulatory filing.

The EV maker has access to a $4.5 billion DOE loan after renegotiating the agreement with the department and expects to begin drawing funds in early 2027. Rivian is yet to turn profitable, and Wall Street estimates the company will require around $8 billion over the next 11 quarters, through the end of 2028, to fund its operations.

Goldman Sachs Group is leading the share sale. Based on Monday's closing price, the base offering is expected to raise about $1.51 billion before underwriting discounts and expenses, or approximately $1.74 billion if underwriters fully exercise their option to purchase additional shares.

The DOE financing is tied to Rivian's planned manufacturing facility in Georgia, a key part of the company's strategy to expand production beyond its existing plant in Illinois. Rivian expects to start drawing on the loan in early 2027.

The company has continued to secure funding through strategic partnerships. Volkswagen Group, Rivian's largest shareholder, has committed to investing up to $5.8 billion over several years and has already invested around $3 billion as part of the companies' joint venture, as per the Bloomberg report.

Strong revenue forecast for second quarter

Alongside the capital raise, the company announced second-quarter revenue of $1.3 billion. Rivian delivered 12,194 vehicles during the quarter, comfortably exceeding Wall Street expectations of around 10,600 vehicles, following several quarters of uneven sales.

The company said the improvement was primarily driven by higher vehicle deliveries, partly offset by lower average selling prices due to a greater mix of commercial van sales.

Rivian also expects second-quarter revenue to be in the range of $1.55 billion to $1.65 billion, above analysts' average estimate of $1.44 billion, according to the Bloomberg report.

The improving operating performance is helping the automaker move beyond a challenging period marked by rising costs, supply chain disruptions, and weaker demand for electric vehicles. Rivian has also been taking steps to reduce expenses, including workforce reductions.

The company is set to report its second-quarter results on 30 July.

Stock remains volatile

Tuesday's sharp decline came after Rivian shares had staged a strong rally, closing higher in five of the previous six trading sessions and delivering cumulative gains of nearly 38%.

The recent rally had also pushed the stock back above the $20 mark for the first time in about six months before Tuesday's sell-off.

Looking at the broader picture, Rivian shares have remained highly volatile this year after gaining nearly 50% in 2025. The stock ended three of the past six months in the red, resulting in an overall decline of around 10% during the period.

(With inputs from Bloomberg)

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