On Thursday (October 5), shares of Rivian Automotive Inc, an American electric car manufacturer, fell more than 20% to $18.90 per share, the lowest level since July.

After the market closed on Wednesday, the U.S. Securities and Exchange Commission (SEC) published a document showing that Rivian plans to issue $1.5 billion of green convertible senior bonds due in 2030. The company also said buyers will have the option to purchase an additional $225 million worth of bonds.
Conversion of convertible bonds into equity results in dilution of equity and a decline in earnings per share, which is generally viewed as a negative news by the market. But for Rivian, it's a cheaper way to raise money. In March, Rivian issued $1.3 billion worth of bonds in the same way.
At the time of writing, the company once dubbed the "Tesla killer" was worth between $17 billion and $180. Chris McNally, an analyst at Evercore ISI, wrote in a research note on Thursday that Rivian's cash raise came "much sooner than we expected" but was still in line with expectations overall.
In a separate filing on Wednesday, Rivian forecast revenue in the range of $1.29 billion to $1.33 billion for the third quarter of this year. It also estimated that the company had $9.1 billion in cash and cash equivalents as of Sept. 30, down from $10.2 billion at the end of the second quarter.
Evercore said the cash burn rate was also in line with its forecast. Previously, Rivian announced that it was developing the R2 model, which is expected to go on sale in 2026. However, some analysts believe that the cash and cash equivalents on its books can support the company through 2025 is still unknown.
Earlier this week, Rivian disappointed investors when it forecast full-year vehicle production of 52,000 vehicles, falling short of market expectations of 53,654. Compared with Tesla, Rivian's gap in capacity and capital is getting larger and larger, and it can be said that it is no longer on the same order of magnitude.