Rivian Automotive, Inc. (RIVN) shares plummeted 5.34% during Wednesday's intraday trading session, extending a significant decline from the previous day.

The sharp drop follows the electric vehicle maker's pricing of a $1.2 billion underwritten public offering of 75 million common shares at $15.50 per share. The offering price represented an approximate 6% discount to the stock's closing price prior to the announcement, raising concerns about shareholder dilution and negative investor sentiment.

Proceeds from the sale are earmarked for general corporate purposes, including funding equity contributions connected to a loan agreement with the U.S. Department of Energy. The capital raise comes as Rivian continues to ramp up production of its vehicles while managing ongoing cash burn and significant debt obligations.