Key takeaways
- Rivian stock was down 14.54% on the news that it would be issuing convertible notes to raise an additional $1.3 billion in cash
- The details of the convertible notes, such as the rate and term, are yet to be announced
- The issue will be a green convertible note, which will make it a potentially attractive option for both retail and institutional investors who are seeking ESG-based fixed income to add to their portfolios
It’s lucky that Rivian aren’t burning real cash, because at the rate they’re doing it, any positive environmental impact that they’re cars are having would be swiftly undone by that massive bonfire. And now they’re raising more.
Rivian’s stock price sank 14.54% to close at $14.64 on Wednesday, an all-time low for the electric vehicle manufacturer. The fall came off the back of the announcement that Rivian would be raising an additional $1.3 billion in cash via a green convertible note.
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