EV maker Rivian aims to raise as much as $2 billion, in part to replace existing bonds that mature in 2026, Bloomberg reported on Friday, citing sources.
Early pricing discussions indicate an interest rate of around 10%, though the deal could be altered or withdrawn entirely, according to the same sources.
As of the time of writing, Rivian shares are trading 2.7% lower at $14.60, resulting in a market cap value of $16.72 billion
Rivian said earlier this month it secured a previously announced $1 billion investment from Volkswagen Group as part of their newly formed joint venture. The funding is expected to be completed by the end of June.
Between January and March, the EV maker produced 14,611 vehicles at its manufacturing facility in Normal, Illinois, and delivered 8,640 vehicles.
The Swiss investment bank UBS reaffirmed this week its Neutral rating on Rivian shares, citing limited brand awareness revealed by a survey it conducted with EV consumers.
The company reported a record gross profit of $206 million in the first quarter, marking its second straight quarter of positive profit, a result that was mainly due to $157 million in revenue from automotive regulatory credit sales.
The firm remains bearish on the stock. It reiterated the $13.00 price target on the Irvine-based EV maker, implying a downside of 16.8% based on the previous closing price.
In the U.S., Rivian‘s R1S SUV prices start at $75,900, while the R1T pickup is priced from $69,900.
