Rivian Automotive (RIVN) shares fell more than 10% in premarket trading Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.
The capital raise comes as the company seeks to bolster its balance sheet amid ongoing production scaling and competitive pressures in the EV sector.
Last week, Meta Platforms saw its shares drop more than 5% after reports emerged that it was considering a multi-billion dollar equity offering to finance its artificial intelligence ambitions.
The selloff reverses a strong run for the stock, which had climbed 8.1% on Monday and gained 19.2% over the previous week.
Investors appear to be weighing the immediate dilution against the necessity of the funding, with the market signaling skepticism about the timing of the equity issuance following the recent price appreciation.
This move mirrors broader trends in the tech and growth sectors, where companies are increasingly turning to equity markets to fund capital-intensive initiatives.
Last week, Meta Platforms saw its shares drop more than 5% after reports emerged that it was considering a multi-billion dollar equity offering to finance its artificial intelligence ambitions.