Shares of Rivian fell 7.7% to $18.61 in after-hours trading on Monday after the EV maker announced a public offering of 75 million shares, reversing an 8.1% gain in the regular session that a delivery beat and analyst upgrades had driven.
The offering, disclosed after the close, will be sold entirely by Rivian, making it dilutive to existing shareholders, and includes a 30-day option for underwriters to buy up to 11.25 million additional shares.
At Monday’s after-hours price, the base offering would raise roughly $1.4 billion, or about $1.6 billion if the overallotment is exercised, though Rivian said the size, price and timing were not set and would depend on market conditions.
The after-hours decline roughly erased the day’s advance, leaving the stock near where it had traded before the analyst’s notes.
Raising Into Strength
The company said it would use the proceeds for general corporate purposes, including equity contributions required under its amended loan agreement with the US Department of Energy, the financing tied to its planned plant in Georgia.
The $4.5 billion DOE loan, whose first advance the company expects in early 2027, obliges Rivian to make equity contributions, and Monday’s sale funds part of that commitment.
Rivian ended the first quarter with $4.83 billion in cash, cash equivalents and short-term investments and has been burning through cash at roughly $1 billion a quarter as it ramps the R2.
Free cash flow was negative $1.08 billion in the first quarter, on top of a $2.49 billion burn for all of 2025 and cumulative cash consumption that has passed $24 billion since the company’s founding.
Net cash used in operating activities more than tripled to $703 million in the first quarter, driven by working capital, higher operating expenses and a drop in regulatory-credit sales.
The raise adds to $1 billion in Volkswagen funding received in April and up to $1.25 billion Uber has committed through 2031, the outside capital Rivian is stacking to bridge to profitability.
Goldman Sachs, Allen & Company, Barclays, J.P. Morgan Securities, Morgan Stanley and Wells Fargo are acting as joint book-running managers, and the sale is being made under a shelf registration that took effect on April 30, the day Rivianreported first-quarter results.
The Day’s Rally
Before the offering landed, the session had belonged to the bulls.
Rivian closed 8.1% higher after JPMorgan sharply raised its price target even while keeping a bearish rating, and Baird reaffirmed a bullish call, both following the company’s second-quarter delivery beat and annual guidance raise.
JPMorgan analyst Rajat Gupta lifted his target to $15 from $9 while maintaining an Underweight rating, a two-thirds increase that still left the target below the market.
The raise reset a target Gupta had set only two months earlier, when he assumed coverage of Rivian on May 11 with an Underweight rating and a $9 target.
Gupta cited “ongoing strides in autonomy,” including a partnership with Uber, as part of the rationale, and pointed to a plan to deliver point-to-point autonomy comparable to Tesla‘s Full Self-Driving system by year-end.
Baird Holds the Bull Case
Baird analyst Ben Kallo reiterated an Outperform rating and a $23 target, leaving both unchanged after the quarter.
Kallo told clients the delivery beat brought “no change in our positive outlook,” and said he was updating his model to reflect the figure ahead of full results.
The delivery total slightly missed Baird’s Street-high estimate even as it cleared guidance and consensus, and at $23 the target implied about 17% upside from Monday’s regular-session level.
Kallo had upgraded Rivian to Outperform from Neutral on December 18, raising his target to $25 from $14 and framing 2026 as the year of the R2 launch, a call that implied 42% upside at the time.
The Baird analyst trimmed the target to $23 from $25 on February 13 while keeping the rating, then reiterated both on April 6.
Taken together, the two targets left Rivian trading between Wall Street’s bear and bull cases before the offering, with JPMorgan’s $15 below the market and Baird’s $23 above it.
The Quarter Behind the Calls
The second quarter marked the launch of the R2, the lower-priced crossover Rivian is counting on for volume, with output now ramping through the rest of the year.
Rivian delivered 12,194 vehicles, up nearly 14% from a year earlier, beating its guidance of 9,000 to 11,000 and consensus estimates, and raised its full-year outlook by 3,000 units at the midpoint to a range of 65,000 to 70,000.
The raised guidance implies a heavy second-half ramp of the crossover, while deliveries of the R1T pickup and R1S SUV are expected to hold roughly flat.
Customer deliveries of the R2 began on June 9, with only the Performance trim open to order at $57,990 and cheaper versions due through 2027.
The Georgia facility, whose capacity Rivian raised to 300,000 vehicles a year, is central to its plan to scale beyond its sole Illinois plant, and the DOE loan is meant to help fund it.
The firmer tone stood in contrast to 2025, when Rivian cut guidance amid softer demand and production adjustments, a reversal that had underpinned the analyst optimism the offering then tempered.
Full second-quarter results are due after the close on Thursday, July 30.
