Beyond the dilution of equity, the company signaled financial pressure stemming from its core business operations. Management warned that a decrease in the average selling price of its vehicles would likely dampen second-quarter results. Rivian projects revenue for the period ending June 30 to fall between $1.55 billion and $1.65 billion.

To facilitate the capital raise, the company is granting underwriters a 30-day window to purchase an additional 11.25 million shares. Investors reacted sharply to the dual news of equity dilution and lowered revenue expectations, reflecting ongoing market sensitivity toward the company’s path to profitability.