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Rivian is supposed to be having a great year. The launch of the R2 is supposed to bring it to the next level and help it finally get to profitability. Like many, I would absolutely love for Rivian to have a huge burst in sales, production, sales, production, and then sustainable profitability. But there’s a question how much demand there actually will be for the R2. Additionally, beyond that, there are supply challenges the company is facing.
Adding everything up, and sprinkling in manufacturing expansion commitments and requirements, Rivian may need some more cash in the next couple of years. So, Rivian just sold off some of its stock in exchange for cash. Naturally, the market wasn’t thoroughly inspired by that and the result was a significant drop in the stock price this week.
“Rivian said it would offer 75 million shares of Class A common stock, with underwriters holding a 30-day option to buy up to 11.25 million additional shares. Based on Rivian’s July 6 closing price of around $20, the base offering could raise around $1.5 billion, or roughly $1.7 billion including the overallotment option,” yahoo!finance shares.
