The preliminary estimates for the third quarter revealed that Rivian has cash and cash equivalent of about $9.1 billion as of September 30.
Rivian Automotive Inc (NASDAQ: RIVN) shares closed Thursday trading at $18.27, down 22.88 percent from the day’s opening price after the company reported high-impact news in the past few days. On October 02, Rivian reported its production for the quarter that ended on September 30, whereby the company produced 16,304 vehicles but delivered 15,564 units to the customers. However, analysts surveyed by FactSet expected the company to deliver about 14,000 vehicles during the quarter.
Despite announcing better-than-expected production and deliveries for the quarter, the company announced that it intends to raise more funds by issuing convertible notes of up to $1.5 billion. Notably, the company plans to offer up to $1.5 billion worth of senior unsecured ‘green’ convertible notes that are due by 2030. The company highlighted that the buyers of the convertible notes have the option to purchase an additional up to $225 million worth of the convertible notes.
“We believe our existing cash, cash equivalents, and short-term investments (without giving effect to this offering or the use of proceeds thereof) will be sufficient to enable us to fund our operations and capital expenditures through 2025. The foregoing is based on assumptions which may prove to be incorrect, and we could use our available capital resources sooner than we currently expect,” the company noted in an SEC filing.
Rivian (RIVN) and Its Market Performance
Earlier this week, the company announced that it will be releasing its third quarter financial results on November 07, after market close. According to preliminary results for the three months that ended on September 30, the company expects to report revenue between $1.29 billion and $1.33 billion. Notably, analysts surveyed by LSEG, formerly Refinitiv, expect the company to report revenue of about $1.3 billion.
If the company manages to achieve the target, it will have more than doubled its revenue compared to the same time last year. Rivian highlighted that the notable increase in vehicle production and deliveries will significantly help in bolstering its revenue for the quarter and for the whole year. Moreover, the company reduced its staff by about 6 percent earlier this year to optimize its balance sheet.
Notably, the company also previously announced the delayed launch of its upcoming smaller R2 electric vehicles, with the earliest estimate in 2026 from 2025. Despite the company’s expansion of its production site in Normal, Illinois, the high competition from other EV makers like Tesla Inc (NASDAQ: TSLA) has significantly suppressed its growth rate.