What's Going On With Rivian Stock?
Portfolio Pulse from Henry Khederian
Rivian Automotive Inc's shares are trading lower by 3.37% and have declined by 35% in October due to weakness in the EV industry, influenced by Tesla's disappointing Q3 results, rising Treasury yields, and Rivian's pricing of $1.5 billion in green convertible senior notes. The issuance of these notes has increased Rivian's debt burden, potentially impacting its creditworthiness and profitability. The notes offer a 3.625% annual interest rate, are convertible under specific conditions, and the proceeds will be used for environmentally friendly projects.
October 30, 2023 | 6:49 pm
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Rivian's stock has declined due to the company's increased debt from its green convertible senior notes offering and overall weakness in the EV industry.
The issuance of $1.5 billion in green convertible senior notes has increased Rivian's debt burden, which could impact its creditworthiness and profitability. Additionally, the overall weakness in the EV industry, influenced by Tesla's disappointing Q3 results and rising Treasury yields, has also contributed to the decline in Rivian's stock.
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