Rivian Considers Debt Deal Amid Delivery Concerns
Rivian Automotive is exploring a potential high-yield bond sale in collaboration with JPMorgan Chase, according to a Bloomberg News report.
Refinancing Debt
The electric vehicle manufacturer aims to raise as much as $2 billion, partly to refinance existing bonds maturing in 2026. JPMorgan is gauging investor interest, suggesting a yield of around 10%.
Potential Launch
The bond deal could potentially launch as soon as next week, although the plans are still under discussion and subject to change.
Delivery Forecast
This potential debt arrangement follows Rivian's recent reduction in its 2025 delivery projections, attributed to tariff concerns.
Tariff Impact
CEO RJ Scaringe noted that tariffs add thousands of dollars to the cost per vehicle, impacting profitability. While Rivian manufactures in the U.S. and sources parts from North America, they rely on Asian countries for crucial components like lithium-ion batteries, which are subject to import duties.
