Shares of electric vehicle startup Rivian Automotive, Inc. RIVN plunged in premarket trading on Thursday.
The slide stemmed from an announcement that the company plans to offer green convertible senior notes worth $1.5 billion due in 2030 through a private offering to qualified institutional buyers. The debt offering, though not having a dilutive impact on the stock, will likely trigger liquidity concerns.
Rivian went on to say that not counting the proceeds from the proposed debt offering, it has a cash runway that could see it through 2024.
The company also pre-announced third-quarter revenue of $1.29 billion to $1.33 billion, surrounding the consensus estimate of $1.3 billion.
This compares to the year-ago revenue of $551.57 million. If the revenue comes in at the low end, there is a possibility of the company underperforming relative to expectations.
Rivian recently reported estimate-beating production and deliveries of 16,304 and 15,564 units, respectively, for the third quarter and also reaffirmed its full-year production guidance of 52,000 units.
In premarket trading, Rivian shed 8.61% to $21.65, according to Benzinga Pro data.
See Also: Best Electric Vehicle Stocks
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