Rivian Automotive Inc. Shares Plummet Amid Sales Outlook and Debt Offering


Shares of Rivian Automotive Inc. (symbol: RIVN) experienced a significant drop of 22.6% during Thursday’s afternoon trading session. This sharp decline is attributed to the company’s sales projections and announcement of a convertible debt offering. Let’s dive into the details.

Unprecedented Trading Volume

During this eventful day, trading volume for Rivian Automotive surged to an astonishing 146.6 million shares. This figure is nearly six times the average daily trading volume, instantly catapulting Rivian to become the most actively traded stock on the Nasdaq exchange.

Record Decline

Although Rivian went public on November 10, 2021, this recent decline marks the largest single-day decline in the stock’s closing value so far. On May 9, 2022, Rivian endured a decline of 20.9%, which previously held the record.

Preliminary Sales Estimates and Debt Offering

Late Wednesday, Rivian released its preliminary sales estimates for the third quarter, aligning with Wall Street’s expectations. However, alongside this positive news, the company also announced its intention to offer $1.5 billion in convertible debt. This debt can be converted into cash, common stock, or a combination of both.

Market Performance Comparison

Year to date, Rivian’s stock has seen a moderate decrease of 0.5%. In contrast, the Global X Autonomous & Electric Vehicles ETF (symbol: DRIV) has achieved a growth of 14.9%, while the S&P 500 index (symbol: SPX) has advanced by 11.0%.

In conclusion, despite Rivian’s recent downturn, it remains an intriguing player in the electric vehicle market. Investors will undoubtedly be keeping a close eye on the company’s future actions and strategic plans.

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