Rivian’s Shares Fall After Green Bond Announcement

- Advertisement -
- Advertisement -

Rivian’s stock is down about 1% year-to-date and dropped 77% from its initial public offering price of $78 in November 2021.

The share price of  electric vehicle maker Rivian Automotive Inc. fell by 22.9% on Thursday, highest daily percentage decline since their listing. This came after the company announced plans to issue $1.5 billion worth of convertible green bonds which mature in October 2030. The shares closed at $18.27, a three-month low. 

Rivian expects the bonds will help the launch of its R2 sports utility vehicle in Georgia. The company had also issued $1.3 billion convertible green bonds to support its smaller R2 vehicle family’s launch, in March 2023.

- Advertisement -

Elliot Johnson, Chief investment officer at Evolve ETFs, expressed concerns about Rivian’s financial strategies, given that it’s still seen as a high-risk or speculative business in the investment community. He believes that while the company is meeting delivery and earnings expectations, its decision to raise capital earlier than expected and the potential for dilution are worrying signs.

Rivian, backed by e-commerce company Amazon, has been investing huge to increase production, while  competitors, including EV maker Tesla, have been decreasing prices.

Click here to know more- Increased Delivery Amid Decreased EV Demand – ElectronicsB2B 

  • Rivian predicts its revenue for the third quarter will reach up to $1.33 billion. This forecast aligns with what analysts were expecting based on London Stock Exchange Group (LSEG) data.
  • By the end of September, Rivian had approximately $9.1 billion in cash compared to $10.2 billion in June.
  • Rivian’s chief executive officer (CEO), Robert Scaringe, mentioned in August that their current cash reserves should be sufficient until 2025 if they manage their expenses effectively.

Garrett Nelson, an analyst from CFRA Research, maintains a sell recommendation on Rivian’s stock with a target price of $15. He expressed concerns about Rivian’s liquidity and high capital requirements.

Some investors believe Rivian’s decision to issue bonds currently is wise, even if the funds aren’t urgently needed, as future market conditions might become more stringent.

The median stock price target from 24 analysts for Rivian stands at $30, and they generally have a buy recommendation, as indicated by LSEG data.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

How Effective Will The Global Biofuel Alliance Be?

0
From environmental benefits to economic opportunities, the potential of biofuels in revolutionising our energy landscape. India has made history by hosting the 18th G-20 summit...
Marina

Investments In Drone Industry Decline To US$1.7 billion

0
The 2023 data now separates drone company funding from AAM/eVTOL funding, which significantly boosted the total in 2020 and 2021. Drone companies received US$1.7 billion...

“Now’s A Great Time To Make In India”

0
In news and in current affairs relevant to the current geopolitical situation, India is emerging as one of the fastest-growing electronics manufacturing services nations...

Buzz

Quantum Circuits Logo

Quantum Circuits Appoints Ray Smets As CEO

0
His contributions to mobile networking technology have earned him over ten international patents. Quantum Circuits, Inc., a pioneer in fault-tolerant quantum computing, has announced the...

Jakson Green Signs Power Purchase Agreement With SECI

0
It is estimated to power 100,000 households annually, reduce 188,000 MT of carbon emissions each year, and boost job opportunities. Jakson Green, a leading player...

ZF Expands Aftermarket Commercial Vehicle Range With ADAS Sensors

0
Advanced Driver Assistance Systems (ADAS) are gaining traction in the commercial vehicle market. Since 2015, trucks have been required to have automatic emergency braking...

Important Sectors

Feb EV Sales: Electric Car Sales Decline, Startups Rise Once Again

0
Electric two-wheelers and electric three-wheelers continue to dominate the electric vehicle sales figures in India. Electric car adoption, on a larger scale, seems to...

Jakson Green Signs Power Purchase Agreement With SECI

0
It is estimated to power 100,000 households annually, reduce 188,000 MT of carbon emissions each year, and boost job opportunities. Jakson Green, a leading player...

ZF Expands Aftermarket Commercial Vehicle Range With ADAS Sensors

0
Advanced Driver Assistance Systems (ADAS) are gaining traction in the commercial vehicle market. Since 2015, trucks have been required to have automatic emergency braking...

Samsung Semiconductor India Research Launches New R&D Facility in Bangalore

0
The facility spans 1.6 lakh square feet across four floors and is designed to accommodate around 1,600 employees. Samsung Semiconductor India Research (SSIR) has inaugurated...
Intel, Digital India, CPU

Intel Eyes AI For Standalone Programmable Chip Unit Altera

0
The contract manufacturing customers, including Intel's own business units, may receive favorable pricing.  Intel's standalone programmable chip unit, Altera, is eyeing a significant opportunity in...

Manufacturing

Union Cabinet Approves CG-Led JV Proposal For OSAT Facility In Sanand

0
CG Power owns a 92.3% stake, while Renesas Electronics and Thai OSAT provider Stars Microelectronics will have 6.8% and 0.9% equity, respectively in the...

Govt Sanctions 3 Semiconductor Plants; Rs 1.26 Lakh Cr Investment

0
The Dholera (Gujarat) semiconductor fab will produce 50,000 wafers monthly. In contrast, the Morigaon (Assam) and Sanand (Gujarat) units will assemble, test, monitor, and...

“Now’s A Great Time To Make In India”

0
In news and in current affairs relevant to the current geopolitical situation, India is emerging as one of the fastest-growing electronics manufacturing services nations...

MeitY Secretary: Domestic Semiconductor Manufacturing Is The Next Big Thing

0
At the India Digital Summit (IDS) 2024, S Krishnan, Secretary of MeitY, highlighted that India is on the brink of a major move towards...

Tata Picks Somerset For UK Battery Plant

0
The Bridgewater factory, operated by the subsidiary Agratas, will initially produce batteries for JLR and Tata Motors; with a capacity of 40GWh, it will...