Shares of Rivian Automotive (NASDAQ:RIVN) were down nearly 10% in pre-market trading Thursday morning after the electric automaker announced a $1.5 billion green convertible note offering last night along with further preliminary 3Q results.
Rivian plans to raise $1.5B through a green convertible senior unsecured notes offering, with an option for an additional $225M. The notes can be redeemed for cash between October 2027 and September 2030, subject to specific share price performance conditions.
This move is expected to extend the company's cash runway through 2025, in line with previous statements.
Rivian's preliminary estimate for Q3 revenue is between $1.29B and $1.33B, slightly below market expectations, with an estimated cash balance of $9.1B.
Truist remains bullish on the electric car company with a Buy rating and $30.00 price target on the stock.
Analysts wrote in a note, “We believe today's announcement largely falls in line with expectations & represents RIVN's strategy of continued opportunistic capital raises.”
However, they added, “We wouldn't be surprised to see shares face some pullback in tomorrow's trading session, though with most of the unknowns out of the way, we see an increasingly positive setup into the 3Q print.”
Shares of RIVN are down 9.73% in pre-market trading Thursday morning.