EV startup Rivian Automotive plans to raise $1.3B in cash by selling convertible notes.
The company intends to use the new funds to develop its upcoming R2 series vehicles, expected to launch in 2026. Investors buying the notes will have the option to purchase additional notes worth up to $200M.
According to Rivian’s Q4 earnings, the company had $12.1B at the end of 2022.
- The automaker raised nearly $12B when it went public in November 2021.
- Rivian noted that it had enough to fund its operations through 2025.
- Last month, the company laid off 6% of its workforce.
- The EV maker plans to produce 50,000 vehicles in 2023, about 10,000 below share analysts’ expectations.
- Rivian shares closed at $14.64 on Tuesday, down ~14.5%.
