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EV maker Rivian shares tumble after launch of $1.5 billion convertible bond offering

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NEW YORK (Reuters) -Shares of Rivian Automotive Inc fell by more than 20% on Thursday, and were on course for their biggest daily percentage decline since May last year, after the electric vehicle maker unveiled plans to issue $1.5 billion worth of convertible green bonds. Irvine, California-based Rivian expects the bonds, which will mature in October 2030 and can be converted to either cash or its shares, will help it to 'de-risk' the launch of its R2 sports utility vehicle in Georgia, a company spokesperson told Reuters on Wednesday. It is the second time in less than a year that Rivian is issuing such a green bond, which raises capital from investors seeking to back climate-focused projects.

NEW YORK -Shares of Rivian Automotive Inc fell by more than 20% on Thursday, and were on course for their biggest daily percentage decline since May last year, after the electric vehicle maker unveiled plans to issue $1.5 billion worth of convertible green bonds.

Rivian's stock fell 20.5% to as low as $18.83 on the session, and is now up about 4% year-to-date. It was last down 19.5%. Rivian, which is backed by e-commerce giant Amazon, has been burning through cash to ramp up production and keep up with market leader Tesla , which has slashed prices. The company beat estimates in the third quarter by producing 16,304 vehicles and delivering 15,564 vehicles to customers. It is on track to deliver 52,000 vehicles this year.

 

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Rivian Sinks After EV Maker Plans Convertible Note Offering - BNN BloombergRivian Automotive Inc. sank after the electric-vehicle maker announced plans to issue $1.5 billion in convertible debt and reported preliminary third-quarter revenue.
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