Rivian Shares Slide 10% Following $1.51 Billion Capital Raise

Based on Monday’s closing price of $20.14 per share, the move is set to inject approximately $1.51 billion into the company’s balance sheet. Rivian disclosed in a regulatory filing that these funds are earmarked for equity contributions linked to a loan agreement with the U.S. Department of Energy. The offering also grants underwriters a 30-day window to purchase an additional 11.25 million shares, a provision that could further expand the total capital raised if fully exercised.

The market’s cooling comes after a robust week for the company, which saw shares climb 19% leading up to the announcement. By leveraging the recent price appreciation to secure funding, Rivian aims to reinforce its liquidity, though the immediate dilution of existing holdings triggered a swift downward correction from shareholders.