Rivian shares fall 18% in worst rout in nearly two years on cash fears
Shares in electric-vehicle maker Rivian fell 18% on Tuesday, their steepest single-day drop in nearly two years, after the company launched a new stock sale. The offering revived Wall Street concerns over Rivian's cash position and burn rate.
Rivian shares tumbled 18% on Tuesday, the electric-vehicle maker's steepest single-day decline in nearly two years, after the company launched a new share sale that unsettled investors. The offering, aimed at raising fresh capital, revived Wall Street concerns about the company's cash position.
Analysts said the equity raise signalled that Rivian may draw down reserves faster than expected as it scales production of its vehicle lineup. Concerns about dilution added to the sell-off, with existing shareholders facing a smaller stake in the business.
The rout underscored the pressure on younger EV manufacturers navigating high costs and cooling demand. Investors will watch Rivian's next earnings update and delivery figures for signs of whether the capital raise stabilises its balance sheet.
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