Rivian Automotive Inc. (RIVN) experienced a sharp intraday plummet, declining 12.25%. The electric vehicle maker's stock came under significant selling pressure at the market open.

The decline was primarily triggered by the company's announcement of an underwritten public offering of 75 million shares of its common stock. This equity offering is expected to raise approximately $1.5 billion and will increase the number of shares outstanding, resulting in dilution for existing shareholders. The company plans to use the net proceeds for general corporate purposes and to fund equity contribution requirements under a revised $4.5 billion loan agreement with the U.S. Department of Energy.

The negative market reaction to the capital raise overshadowed Rivian's concurrent release of preliminary second-quarter revenue guidance, which projected revenues between $1.55 billion and $1.65 billion, surpassing analyst expectations. Investors focused on the dilution impact and concerns over the company's ongoing financing needs, as Rivian has yet to achieve profitability, leading to the intraday sell-off.