EV maker Rivian shares have record drop after convertible bond offering launched
Rivian Automotive Inc (RIVN.O) saw a substantial drop in its stock value on Thursday, experiencing its most significant daily percentage decline since its debut in 2021, with shares falling by nearly 23%. This decline came after the electric vehicle manufacturer announced its intention to issue $1.5 billion in convertible green bonds. Rivian, headquartered in Irvine, California, anticipates that these bonds, which have a maturity date in October 2030 and offer the option to be converted into either cash or the company’s shares, will play a role in mitigating the risks associated with the launch of its R2 sports utility vehicle in Georgia. A company spokesperson explained this strategy to Reuters on Wednesday. Notably, this marks the second time in less than a year that Rivian is issuing such green bonds, attracting investment from those interested in supporting environmentally conscious projects. Previously, the company issued a $1.3 billion convertible green bond in March, aimed...