Key takeaways
- Rivian has confirmed it’s raising a $1.5 billion convertible green note for institutional investors
- It’s the second time the EV maker has done so in a year to raise cash
- Rivian’s share price fell 23% in a day, a new record drop for the company since its 2021 debut
Start-up EV maker Rivian has announced its intention to issue $1.5 billion worth of convertible green bonds in a move that has sent the company’s share price plunging this week. It didn’t help that the announcement was paired with missed sales estimates for the third quarter, further adding to Rivian’s woes.
The broader EV market is under pressure right now, with price cuts abound across the global market and deliveries falling under target. Rivian is less affected as a truck maker, but investors still have some doubts about the company’s short-term financial future and whether it can turn things around after a slow ramp-up from its 2021 IPO debut.
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