Rivian stock falls 10% as company sells 75 million shares to raise capital

Rivian Automotive stock was down by more than 10% during premarket trading on Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.

The capital raise occurred during extended hours trading. Rivian shares rose 8.1% on Monday after increasing 19% last week.

Rivian in a public filing said it intended to grant underwriters an option for a period of 30days to purchase up to an additional11.25 million shares.

The raise follows Rivian suspending plans for a 2027 profitability target due to an expected spike in research and development spending for autonomy and next-generation vehicle technologies.

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