Electric vehicle maker Rivian Automotive (NASDAQ: RIVN) announced a public offering of 75 million shares on Monday, a move that will dilute existing shareholders by roughly 5.5%. At Monday's closing price of $20.14, the sale is expected to generate about $1.51 billion before fees, with underwriters holding an option to purchase an additional 11.25 million shares over the next 30 days.
The offering, which represents about 5.5% of Rivian's common shares outstanding as of June 1, sent the stock down 9% in after-hours trading, erasing some of the 8.1% gain seen during the regular session. If the full underwriter option is exercised, the dilution would increase to approximately 6.3%, bringing total gross proceeds to roughly $1.74 billion.
Rivian plans to use the proceeds for general corporate purposes, including equity contributions related to its Department of Energy loan. The company also raised its 2026 delivery forecast last week, now expecting between 65,000 and 70,000 vehicles, up from the previous range of 62,000 to 67,000. That 3,000-unit increase at the midpoint means the base offering equates to about 25,000 new shares for each additional vehicle in the forecast.
In the first half of 2026, Rivian delivered 22,559 vehicles, with 10,365 in Q1 and 12,194 in Q2. The updated guidance implies second-half deliveries of 42,441 to 47,441, with the new R2 model expected to shoulder much of the volume. Early second-quarter revenue came in at $1.55 billion to $1.65 billion, beating the LSEG analyst estimate of $1.45 billion. Cash and short-term investments stood at $5.3 billion as of June 30, up from $4.8 billion at the end of March.
Despite the cash infusion, analyst sentiment remains cautious. MarketWatch data shows the average analyst price target at $18.57, with a median of $18, both below Monday's close. Earnings per share are projected to remain negative through at least 2028. J.P. Morgan analyst Rajat Gupta raised his price target to $15 from $9 but maintained an Underweight rating, while increasing his 2026 delivery estimate to 68,100 units from 64,900.
Cantor Fitzgerald's Andres Sheppard expressed optimism about the R2, stating, "We continue to expect the R2 line will materially boost sales," citing its pricing and autonomy features. The R2 began public deliveries in June and is seen as critical to Rivian's growth trajectory. CEO RJ Scaringe identified supply chain as the primary risk to the ramp-up, while AutoPacific president Ed Kim called the R2 Rivian's "biggest make-or-break moment yet."
Rivian's dual-class share structure currently excludes it from certain stock indexes, limiting passive fund inflows. The company expects the dual-class system to end in November 2026, when Class B shares convert to Class A. Rivian is scheduled to report its full second-quarter results on July 30.
