Rivian Automotive has been on a tear lately, but investors were slamming the brakes on Tuesday after the electric vehicle maker said it would sell shares to help pay back a Department of Energy loan.
The stock sank 7.9% to $18.55 ahead of the opening bell. Futures tracking the benchmark S&P 500 slipped 0.1% as a recent rally in chip makers fizzled out.
The selloff looked set to wipe out all of Rivian's gains from the previous session, which came after J.P. Morgan hiked its price target. Shares jumped to $20.14 from $18.63 on Monday.
Rivian said in a Securities and Exchange Commission filing late Monday that it would sell 75 million shares. The public offering would raise about $1.51 billion at the level the stock was trading at as of the closing bell.
The company added that it would use the money raised to fund equity contribution requirements for a $4.5 billion loan it took from the Energy Department. It expects to draw on the loan by early 2027.
Rivian may be trying to take advantage of a recent hot streak for shares, which were up 28% over the past month through Monday's close.
Investors are feeling bullish about the company's new, cheaper EVs and its R2 SUV platform, which just started shipping. The R2 is Rivian's second-generation, lower-price group of electric vehicles, following the R1S and R1T, which launched in 2021.
Write to George Glover at george.glover@dowjones.com
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(END) Dow Jones Newswires
July 07, 2026 05:47 ET (09:47 GMT)
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