Taylor appears at Rivian electrical vans on the auto maker’s newly opened storefront inside the Meatpacking District of Manhattan on June 23, 2023 in New York Metropolis.
Spencer Platt | Getty Photos
Shares of Rivian Automotive had been sharply lower in early shopping for and promoting Thursday, after the company shocked consumers with a plan to produce $1.5 billion in convertible notes.
It moreover provided a preliminary estimate of its third-quarter revenue that was in keeping with Wall Avenue estimates.
Shares had been down 16% as of 10 a.m. ET.
In a regulatory submitting late Wednesday, Rivian acknowledged it expects its third-quarter revenue to come back again in between $1.29 billion and $1.33 billion, roughly in keeping with Wall Avenue estimates of $1.3 billion, in accordance with LSEG, beforehand typically known as Refinitiv.
Rivian moreover estimated that it had cash and equivalents of $9.1 billion as of Sep. 30, down from $10.2 billion on the end of the second quarter.
Rivian took steps earlier this 12 months to sluggish spending and bolster its steadiness sheet, along with a 6% staff low cost in February and a $1.3 billion sale of convertible notes in March. The agency moreover delayed the launch of its upcoming smaller R2 automobile platform to 2026, from 2025. However data of the latest offering acquired right here as a shock to consumers.
Rivian plans to produce $1.5 billion worth of senior, unsecured “inexperienced” convertible notes due in 2030. Patrons can have the selection to purchase as a lot as an additional $225 million worth of notes, the company acknowledged.
Rivian on Monday reported third-quarter deliveries that had been increased than Wall Avenue had anticipated. The EV maker will report its third-quarter earnings after the U.S. markets shut Nov. 7.
Rivian stock sinks after the EV maker pronounces a convertible phrase offering.