Shares of Rivian Automotive were sharply lower in early trading on Thursday, after the company said it plans to offer $1.5 billion in convertible notes and provided a preliminary estimate of its third-quarter revenue.
Shares were down 16% as of 10 a.m. ET.
In a regulatory filing late Wednesday, Rivian said that it expects its third-quarter revenue to come in between $1.29 billion and $1.33 billion, roughly in line with Wall Street estimates of $1.3 billion, according to LSEG, formerly known as Refinitiv.
It also estimated that it had cash and equivalents of $9.1 billion as of Sep. 30.
Rivian plans to offer $1.5 billion worth of senior, unsecured “green” convertible notes due in 2030. Buyers will have the option to purchase up to an additional $225 million worth of notes, the company said.
Rivian on Monday reported third-quarter deliveries that were better than Wall Street had expected. The EV maker will report its third-quarter earnings after the U.S. markets close on Nov. 7.
Rivian stock sinks after the EV maker announces a convertible note offering.