Rivian Launches 75 Million-Share Offering for $1.5 Billion as R2 Ramp Drives Cash Need
Updated
Updated · Electrek · Jul 7
Rivian Launches 75 Million-Share Offering for $1.5 Billion as R2 Ramp Drives Cash Need
3 articles · Updated · Electrek · Jul 7
Summary
75 million new shares will raise about $1.5 billion before fees, with underwriters able to buy another 11.25 million shares that could lift proceeds to roughly $1.7 billion.
Rivian said the cash will fund general corporate purposes, especially equity contributions tied to its amended DOE loan and the production ramp of its R2 SUV.
About 1.43 billion Class A shares would be outstanding after the sale, implying roughly 6% dilution for existing holders; the stock fell about 11% in premarket trading after the announcement.
12,194 Q2 deliveries and a higher 65,000-70,000 full-year target had lifted Rivian shares 15.6% over the prior week, giving the EV maker a stronger window to raise capital.
The financing supports Rivian's most capital-intensive phase yet, including its Illinois R2 launch and its Georgia plant, where planned annual capacity has been increased 50% to 300,000 vehicles.