Rivian Stock Drops 23% After Announcing $1.5B Convertible Bond Sale to Fund Operations

Rivian shares fell by nearly 23% on Thursday after announcing plans to issue $1.5B in convertible green bonds.

This is the 2nd time in less than a year Rivian is issuing such bonds to support vehicle launches.

Rivian beat Q3 estimates by producing over 16K vehicles but is still burning through cash.

The company expects revenue to more than double to up to $1.33B but is still far from profitability.

Analysts expressed concern about the earlier than expected bond issuance suggesting Rivian's cash needs are higher than anticipated.