Rivian Automotive stock plunged 18% Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.

Tuesday's stock move was its worst since 2024 and its fifth worst day on record.

The capital raise occurred during extended hours trading after Rivian shares rose 8.1% on Monday. The stock also increased 19% last week.

Based on Monday's close of $20.14 per share, Rivian would raise roughly $1.51 billion with the offering. Rivian ​said in a filing that it plans to use the proceeds ​to fund equity contributions as part of a loan ⁠agreement with the U.S. Department of Energy.

Rivian said in the public filing that it intended to grant underwriters an option for a period of 30 days to purchase up to an additional 11.25 million shares.

Rivian stock

The raise follows Rivian suspending plans for a 2027 profitability target due to an expected spike in research and development spending for autonomy and next-generation vehicle technologies.

It also comes as Rivian is launching its new R2 midsize SUV, which the company hopes will lead it to profitability toward the end of this decade.

Rivian also pre-released some second-quarter results in a separate public filing. The company estimated revenue to be between $1.55 billion and $1.65 billion during the second quarter, above average analyst estimates compiled by LSEG of $1.45 billion.

Its cash, cash equivalents and short-term investments balance was an estimated $5.3 billion, up from $4.8 billion to end the first quarter, according to the filing.