Rivian stock falls more than 10% as company sells 75 million shares to raise capital

Rivian (RIVN) dropped more than 10% in early trading Tuesday after announcing a public offering of 75 million Class A common shares. The capital raise launched during extended hours following an 8.1% gain Monday, which capped a 19.2% surge last week.

The timing marks a strategic move by the EV maker to capitalize on recent momentum. The offering represents a significant dilution event for existing shareholders, coming on the heels of the stock's strongest weekly performance in recent memory.

Rivian shares had climbed 19.2% over the prior five trading days before management pulled the trigger on the equity raise. Monday's 8.1% advance pushed the stock into extended-hours territory where the company disclosed the 75 million share offering.

The capital injection aims to bolster Rivian's balance sheet as the automaker continues scaling production and navigating the cash-intensive phase of its growth strategy. The offering's size and timing suggest management saw a narrow window to raise funds while investor sentiment remained elevated.