Rivian Shares Plunge 11.1% After 75M-Share Offering Despite Beating Q2 Guidance
RIVN•Rivian launched a 75 million-share offering, prompting an 11.1% stock decline to $17.96—its worst single‐session drop since November 2024. Despite Q2 revenue and delivery guidance beating forecasts, 42,000 puts traded in the first hour and analysts’ consensus price target remains just 5% above current levels.
1. Share Offering Details
Rivian initiated a 75 million-share underwritten public offering to bolster its cash reserves for production ramp-up and infrastructure investments. The offering was unveiled after the close on July 6, marking the company’s latest capital-raising move following its January follow-on offering.
2. Stock Price Reaction
Shares tumbled 11.1% to close at $17.96, marking the steepest one-day fall since November 2024. The drop erased gains from a recent rally that had lifted the stock to its highest level since January 9 and reversed its year-to-date breakeven position.
3. Guidance and Analyst Sentiment
Rivian’s Q2 revenue and delivery guidance exceeded FactSet consensus, highlighting stronger-than-expected demand for its EV lineup. Of the 27 brokerages covering the company, 11 maintain buy or better ratings, with an aggregate 12-month price target about 5% above current levels.
4. Options Market Reaction
Options traders reacted aggressively, trading 42,000 puts in the first hour—four times the average intraday volume. The weekly July 10 17-strike put saw the highest uptake, indicating bearish bets on further near-term weakness.
