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Rivian Tumbles On Plan To Offer Convertible Debt

by Mark Mendoza

Rivian Automotive, a prominent electric vehicle (EV) startup, announced on Wednesday that it will be issuing $1.5 billion of convertible debt. Additionally, the company disclosed its preliminary revenue figures. Although Rivian’s stock experienced significant gains during Wednesday’s trading session, it plunged overnight in response to the news.

The green convertible senior notes will be sold by Rivian, with the option for purchasers to acquire an additional $225 million in debt. The funds raised from this offering are expected to be utilized for financing, refinancing, and making direct investments in one or more new or recently completed eligible green projects.

Following this announcement, Rivian’s stock fell by 8.8% in premarket trading. However, it had previously shown resilience by surging 9.2% to $23.69 on Wednesday, managing to surpass the 50-day line.

Rivian currently has a buy point of $28.06 and an early entry point of $24.87.

In addition to its debt offering, Rivian also released its preliminary revenue report for the third quarter, which ranges between $1.29 billion and $1.33 billion. This figure aligns with market expectations and indicates solid performance during the period.

Earlier this week, Rivian reported better-than-anticipated Q3 deliveries, further bolstering investor confidence.

To stay updated on stock market developments and receive real-time updates, interested individuals can follow Ed Carson on Twitter at @IBD_ECarson and on Threads at @edcarson1971.

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In summary, Rivian Automotive has recently announced its plans to issue convertible debt, which led to a significant drop in its stock price. However, the company has had a positive Q3 performance, with deliveries surpassing expectations. Investors are advised to closely monitor Rivian’s stock movement and stay updated on market developments to make informed decisions.

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