Rivian Stock Is Spiraling Lower Thursday: What's Driving The Action?

Rivian Automotive Inc RIVN shares are tumbling Thursday after the company announced a $1.5 billion proposed green convertible senior notes offering. The EV maker also reported preliminary third-quarter revenue estimates.

What Happened: Rivian said it intends to offer an aggregate of $1.5 billion of green convertible senior notes due 2030 in a private offering to institutional buyers. The company plans to grant the purchasers the option to buy up to an additional $225 million worth of the notes. 

Rivian said it intends to use net proceeds to finance, refinance and make direct investments in current and/or future eligible projects. 

Rivian also provided third-quarter estimates in a new regulatory filing. The EV maker said it expects revenue to be in the range of $1.29 billion to $1.33 billion versus average analyst estimates of $1.3 billion. 

Rivian's third-quarter revenue estimates are more than double reported revenue from the third quarter of 2022. The company said the anticipated increase is primarily due to higher deliveries. Rivian on Monday announced that it delivered 15,564 vehicles in the third quarter. 

In an interview on CNBC's "Squawk Box" earlier this week, CEO RJ Scaringe said demand for the Rivian brand remains strong and broader interest in EVs continues to gain momentum.

Rivian is set to report its third-quarter financial results after the market close on Nov. 7. There are 22 analysts that cover the stock. 16 of them have positive ratings, while 6 have neutral ratings. 

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RIVN Price Action: Rivian has a 52-week high of $37.39 and a 52-week low of $11.68. The stock was down 9.79% at $21.35 at the time of writing, per Benzinga Pro.

Photo: courtesy of Rivian.