Rivian (RIVN.US) stock fell over 12.0% on Tuesday after EV producer announced plans to sell $1.3 billion of “green” convertible senior notes due in 2029, with the option to grant an additional $200 million worth of convertible notes to the original purchasers. The capital will help facilitate the launch of Rivian’s R2 vehicles, a spokesperson told Reuters, adding that convertible debt was "optimal cost of capital versus selling equity at today's levels."
On the other hand, company may positively surprise investors. Yesterday Rivian announced that production is expected to be 24% higher than the target of 50,000 vehicles announced on Feb. 28, according to Bloomberg News. This means that EV maker would produce nearly 62,000 cars in 2023, in line with analysts’ estimates.
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Rivian (RIVN.US) stock launched today's session with a massive bearish price gap and is currently testing all-time lows at $15.25. The stock has fallen more than 68% in the past 12 months, however if buyers manage to halt declines around the aforementioned level, upward correction may be launched. Source: xStation5
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