Rivian stock sinks as company launches $1.5 billion share sale

The EV maker is selling 75 million new shares to fund equity contributions tied to a Department of Energy loan

David Paul Morris / Bloomberg via Getty Images

Shares of Rivian $RIVN Automotive tumbled more than 10% in premarket trading Tuesday after the company disclosed plans to sell 75 million shares of its Class A common stock to the public.

At Monday's closing price of $20.14 a share, the share sale would generate approximately $1.51 billion in proceeds. Net proceeds would go toward general corporate purposes, the company said, with a portion earmarked for equity contributions tied to an amended loan........

© Quartz