RIVN Stock Slumps Overnight: Rivian Director, Foundation File Stock Sale Notices Amid $1.5B Offering Plan

Rivian also issued preliminary Q2 estimates, projecting revenue of $1.55 billion to $1.65 billion and cash and cash equivalents.

• Director Karen Boone filed to sell 20,000 shares worth $372,600, while the Rivian Foundation filed to sell 166,668 shares worth about $3.11 million.
• Together, the director and foundation sale notices cover 186,668 shares valued at roughly $3.48 million.
• Rivian’s larger 75 million-share offering could raise about $1.51 billion based on Monday’s closing price.

Shares of Rivian, Inc. (RIVN) slumped 9% overnight late Monday after the EV maker unveiled a 75 million-share offering, with separate stock-sale notices from a director and the Rivian Foundation adding to pressure from the dilutive raise.

RIVN stock wiped out most of an 8% rally in the regular session, driven by strong delivery numbers and a raised annual outlook.

RIVN Director, Foundation File Stock Sale Notices

Fresh filings from Monday showed stock sales by Rivian director Karen Boone and the Rivian Foundation. Boone filed to sell 20,000 Rivian shares valued at $372,600, according to the filing. The shares were acquired through a private placement from Rivian in January 2021. 

The Rivian Foundation, listed as an affiliate, filed to sell 166,668 shares valued at $3.11 million. The shares were acquired as founder shares from the issuer in November 2021. Together, the two notices cover 186,668 shares worth about $3.48 million.

Rivian Plans 75M Share Offering

The bigger pressure point came from Rivian’s plans for a public offering of 75 million shares of Class A common stock. Rivian also intends to grant underwriters a 30-day option to buy up to an additional 11.25 million shares. Based on Monday’s closing price, the base offering would raise $1.51 billion before underwriting discounts and expenses, or about $1.74 billion if the underwriters exercise their full option to buy additional shares. 

The company said it plans to use proceeds for “general corporate purposes,” including “funding of certain equity contribution requirements” under its amended loan agreement with the U.S. Department of Energy (DOE). 

The DOE financing is related to Rivian’s Georgia manufacturing facility, a key piece of its strategy to scale production beyond its Illinois plant. Rivian expects to begin drawing from the $4.5 billion loan in early 2027.

RIVN Preliminary Q2 Revenue Update

In a separate filing, Rivian provided preliminary second-quarter estimates showing strong revenue and liquidity. The company expects second-quarter revenue of $1.55 billion to $1.65 billion, up from $1.3 billion a year earlier. Rivian said the increase was mainly driven by higher vehicle deliveries, partly offset by lower average selling prices from a higher mix of commercial vans. It also cited higher revenue from vehicle electrical and software development services, as well as regulatory credit sales. 

Rivian estimated cash, cash equivalents, and short-term investments of $5.3 billion as of June 30, up from $4.8 billion at the end of the first quarter. 

How Do Retail Traders Feel About RIVN?

On Stocktwits, retail sentiment for RIVN flipped to ‘bullish’ from ‘bearish’ levels a week ago amid a 2,643% surge in 24-hour message volumes.

Notably, Rivian retained decent retail support, with a Stocktwits poll showing 42% of 1,500 voters preferred owning RIVN over the next decade, compared with 58% for Tesla.

RIVN stock has risen 54% over the past year.

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