Rivian’s stock sale triggers worst rout for the shares in nearly two years

Rivian Automotive (RIVN) plunged 18% on Tuesday, marking its steepest single-day decline in 20 months after the electric-vehicle maker launched a stock offering. The sale immediately raised investor concerns about the company's cash position and funding needs.

The timing and magnitude of the offering spooked Wall Street, with traders interpreting the dilutive capital raise as a signal that Rivian faces deeper liquidity challenges than previously disclosed. The 18% drop erased significant market value in a single session, with the selloff intensifying as volume spiked throughout the day.

The share sale comes as EV makers face mounting pressure from slowing demand growth and intensifying price competition. Rivian has been burning through cash as it scales production at its Illinois manufacturing facility while developing its next-generation platform. The company's decision to tap equity markets now—rather than wait for improved conditions—suggests management sees an urgent need to bolster the balance sheet.