Rivian Automotive, Inc. (RIVN) experienced a sharp pre-market plunge, declining 8.94%. The electric vehicle maker's stock came under significant selling pressure during the extended trading session.

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 increase the number of shares outstanding, resulting in dilution for existing shareholders. The company plans to use the net proceeds for general corporate purposes, including funding equity contributions required under its amended loan arrangement with the U.S. Department of Energy.

The negative market reaction to the capital raise overshadowed Rivian's concurrent release of upbeat 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 rather than the positive revenue surprise, leading to the pre-market sell-off.