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The electric-vehicle sector's persistent need for balance-sheet capital showed itself again in extended-hours trading this week, with Rivian Automotive tapping the equity market after a pronounced run in its shares.
The company sold 75 million shares to raise capital, and the stock fell more than 10% on the news.
The decline unwound a portion of the gains built over the prior stretch: Rivian had risen 8.1% on Monday after adding 19.2% the previous week. A well-timed window, then dilution The sequencing is the story.
Shares sold into strength dilute existing holders at a higher price per share than shares sold in a downturn, which is the reason capital-intensive companies in the EV space have historically timed equity raises to periods of momentum rather than stress.
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