Rivian's $1.5B Green Note Offering Sends Stock Tumbling 8% Even As EV Maker Allays Liquidity Concerns
Portfolio Pulse from Shanthi Rexaline
Rivian Automotive, Inc. (NASDAQ:RIVN) announced a $1.5 billion green convertible senior notes offering, causing its stock to drop by 8% in after-hours trading. The proceeds will be used to finance, refinance, and invest in new or recently completed projects. The company also released its Q3 preliminary results, with revenues falling in line with expectations. Rivian expects its cash, cash equivalents, and short-term investments to stand at $9.1 billion at the end of Q3.

October 05, 2023 | 6:37 am
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NEUTRAL IMPACT
Lucid had a cash position of $5.3 billion and the luxury of falling back on its Saudi promoters in the eventuality of a cash crunch.
Lucid's cash position and support from Saudi promoters are mentioned in the context of Rivian's financial situation. However, the impact on Lucid's stock is not directly addressed in the article.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Chinese EV startup Nio announced a $1 billion convertible senior note offering in late September.
Nio's announcement of a $1 billion convertible senior note offering is mentioned in the context of Rivian's similar move. However, the impact on Nio's stock is not directly addressed in the article.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Tesla had a cash position of about $23.08 billion at the end of the June quarter.
Tesla's cash position is mentioned in the context of Rivian's financial situation. However, the impact on Tesla's stock is not directly addressed in the article.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Rivian's stock dropped after the announcement of a $1.5 billion green note offering. However, the company's Q3 revenues met expectations and it expects to have $9.1 billion in cash and equivalents at the end of Q3.
The announcement of the debt offering led to a drop in Rivian's stock price. However, the company's Q3 revenues met expectations and it expects to have a strong cash position at the end of Q3, which could potentially offset some of the negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100