Rivian Automotive (RIVN) -) shares slumped lower in early Thursday trading after the upstart electric carmaker unveiled plans to offer a convertible bond that offset a solid revenue forecast.
Rivian third quarter revenues likely doubled from last year, to between $1.29 billion and $1.33 billion, thanks to an increase in truck and sport utility vehicle sales.
Earlier this week, Amazon-backed (AMZN) -) Rivian topped Street forecasts for its third quarter deliveries. The group delivered 15,564 units over the three months ending in September, a 23% increase from the prior period, and said it was on track to produce around 52,000 vehicles this year.
Rivian will publish its formal third quarter earnings on November 7.
Rivian also said it would issue $1.5 billion in so-called 'green' convertible bonds, which offer a lower rate of return that traditional corporate debt but offer investors the option to swap the paper into common shares of the issuers, that mature in 2030.
Cash from the sale will support the launch of its R2 electric SUV and the $5 billion plant it expects to open in Georgia.
Rivian shares were marked 19.8% lower in mid-day Thursday trading to change hands at $18.98 each, a move that would still leave the stock up nearly 31% over the past six months.
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