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(Bloomberg) — Rivian Automotive Inc. is offering to sell 75 million shares as the electric vehicle company seeks to fund equity contributions related to a US Department of Energy loan.
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Goldman Sachs Group Inc. is leading the share sale, according to a filing Monday with the US Securities and Exchange Commission. At the closing price of $20.14 per share, the offering would raise about $1.5 billion.
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Rivian intends to use the proceeds for purposes including making contributions under the amended loan agreement with the Department of Energy, the filing shows. The vehicle maker has a $4.5 billion loan after renegotiating with the Department, and expects to start drawing from it in early 2027.
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Shares of Rivian fell 7.4% to $18.65 each in after-hours trading Monday in New York. Its stock has increased 2.2% this year through Monday’s close, giving it a market value of about $25.4 billion.
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The company raised its full-year guidance last week, saying it now expects to deliver between 65,000 and 70,000 vehicles this year, as it began deliveries of its long-anticipated lower cost R2 SUV, a product line widely seen as key to Rivian’s profitability. The new guidance exceeded expectations of 63,000 vehicles from Wall Street analysts.
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Rivian delivered 12,194 vehicles in its second quarter, more than the roughly 10,600 Wall Street had expected, after several quarters of uneven sales. It also produced 12,613 vehicles, ahead of expectations. It follows a tough year for Rivian, which faced rising expenses, supply chain issues and softening demand for EVs.
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The shares jumped on the figures, increasing 17% from before the July 2 statement through Monday’s close.
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Last month the EV maker also cut hundreds of jobs in its latest round of layoffs in the past year, as it looks to control costs.
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The company has also been unlocking funding through investor partners in recent years. Volkswagen Group, now Rivian’s largest shareholder, is expected to invest up to $5.8 billion into the EV maker over several years, and has already invested about $3 billion as part of a joint venture between the companies. Uber Technologies Inc. announced in March that it would invest as much as $1.25 billion through 2031 as the companies partner to deploy robotaxis.
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The offering is expected to price after the market closes in New York on Tuesday, according to terms of the deal seen by Bloomberg News.
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(Updates with loan details and context from third paragraph.)
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