Shares of Rivian Automotive have been sharply decrease in early buying and selling Thursday, after the corporate stunned buyers with a plan to supply $1.5 billion in convertible notes.
It additionally supplied a preliminary estimate of its third-quarter income that was according to Wall Road estimates.
Shares have been down 16% as of 10 a.m. ET.
In a regulatory filing late Wednesday, Rivian stated it expects its third-quarter income to come back in between $1.29 billion and $1.33 billion, roughly according to Wall Road estimates of $1.3 billion, in accordance with LSEG, previously generally known as Refinitiv.
Rivian additionally estimated that it had money and equivalents of $9.1 billion as of Sep. 30, down from $10.2 billion at the end of the second quarter.
Rivian took steps earlier this yr to gradual spending and bolster its stability sheet, together with a 6% staff reduction in February and a $1.3 billion sale of convertible notes in March. The corporate additionally delayed the launch of its upcoming smaller R2 car platform to 2026, from 2025. However information of the most recent providing got here as a shock to buyers.
Rivian plans to supply $1.5 billion price of senior, unsecured “inexperienced” convertible notes due in 2030. Patrons could have the choice to buy as much as a further $225 million price of notes, the company said.
Rivian on Monday reported third-quarter deliveries that have been higher than Wall Road had anticipated. The EV maker will report its third-quarter earnings after the U.S. markets shut Nov. 7.
Rivian inventory sinks after the EV maker declares a convertible notice providing.
