Rivian Stock Is Spiraling Lower Thursday: What's Driving The Action?
Portfolio Pulse from Adam Eckert
Rivian Automotive Inc (NASDAQ:RIVN) shares fell after the company announced a $1.5 billion proposed green convertible senior notes offering and provided preliminary third-quarter revenue estimates. The EV maker expects revenue to be in the range of $1.29 billion to $1.33 billion, more than double the revenue from the third quarter of 2022, primarily due to higher deliveries. The company is set to report its third-quarter financial results on Nov. 7.
October 05, 2023 | 1:46 pm
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Rivian's stock price fell after the announcement of a $1.5 billion notes offering and preliminary Q3 revenue estimates. The company's Q3 revenue is expected to more than double from Q3 2022 due to higher deliveries.
The announcement of a large notes offering can lead to a drop in stock price as it may dilute the value of existing shares. Additionally, while Rivian's Q3 revenue estimates are positive, they were already expected by the market, thus the impact on the stock price is neutral to negative.
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