Rivian (RIVN) — Rough Week Selling Stock For Cash? Or Booming Stock Provides Easy Opportunity For Cheap Cash?

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Rivian is supposed to be having a great year. The launch of the R2 is supposed to bring it to the next level and help it finally get to profitability. Like many, I would absolutely love for Rivian to have a huge burst in sales, production, sales, production, and then sustainable profitability. But there’s a question how much demand there actually will be for the R2. Additionally, beyond that, there are supply challenges the company is facing.

Adding everything up, and sprinkling in manufacturing expansion commitments and requirements, Rivian may need some more cash in the next couple of years. So, Rivian just sold off some of its stock in exchange for cash. Naturally, the market wasn’t thoroughly inspired by that and the result was a significant drop in the stock price this week.

“Rivian said it would offer 75 million shares of Class A common stock, with underwriters holding a 30-day option to buy up to 11.25 million additional shares. Based on Rivian’s July 6 closing price of around $20, the base offering could raise around $1.5 billion, or roughly $1.7 billion including the overallotment option,” yahoo!finance shares.

“Rivian said proceeds will go toward general corporate purposes, including equity contributions tied to its Department of Energy loan arrangement supporting the company’s Georgia manufacturing build-out.”

However, there’s some good news to consider:

• The company’s total revenue in the second quarter of 2026 was between $1.55 billion and $1.65 billion, up from $1.30 billion in Q2 2025. This came from more vehicle deliveries, despite a somewhat lower average selling price, as well as “growth in vehicle electrical architecture, software development services, and regulatory credit revenues.”
• Cash, cash equivalents, and short-term investments rose from $4.8 billion at the end of the first quarter to $5.3 billion at the end of the second quarter.
• Rivian produced 12,613 vehicles and delivered 12,194 vehicles in the second quarter, far above Wall Street’s expectations and even the company’s own guidance of 9,000 to 11,000 vehicle deliveries.
• After initial market responses to the R2 (good conversion of preorders and great reviews), Rivian has raised its 2026 sales guidance from 62,000–67,000 to 65,000–70,000 deliveries.

Also, the stock boomed a lot following last quarter’s surprisingly positive sales, and that’s apparently the reason why the company decided to raise money just now. (Generally speaking, it’s better for a company to raise money when things — and the stock — are doing well, rather than when finances are getting tight and the stock price has gotten low.) The stock boost meant that company executives felt it was “the right time for Rivian to ​secure additional funding,” ​a spokesperson told ⁠Reuters. The stock price had risen 17% on the back of the good Q2 sales numbers.

However, back to the challenges. “The raise follows Rivian suspending plans for a 2027 profitability target due to an expected spike in research and development spending for autonomy and next-generation vehicle technologies,” CNBC reports.

Additionally, the company is facing the supply challenge others are facing from the AI data center spike gobbling up far too many computer memory chips. “Rivian CEO RJ Scaringe must have a dreaded sense of deja vu: His company’s most important product to date — the mass-market R2 — is launching amid yet another supply squeeze, this time for critical memory chips,” Axios writes. “Four years ago, a global chip shortage threatened the launch of Rivian’s first electric truck, the R1.” Ah, yes … perhaps Scaringe is feeling like his company has the worst timing. But hopefully — and presumably — Rivian can smoothly get over this bump in the road.

The Rivian stock price is down 3.9% in the past five days, but it’s already up 1% in the past day. Across the past one month, the stock is up 5.9%. However, across the past six months, it is down 16.2%. But in the past year, it is up 27%. It is quite a volatile stock. Until the company reaches sustainable profitability, that is likely to remain the case.