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Rivian Automotive (RIVN) is under immense pressure on Tuesday after the electric vehicles (EV) specialist announced a massive public offering of 75 million new shares.  

The selloff drove RIVN closer to its 20-day moving average (MA), with a decisive break below the $16.37 level expected to accelerate bearish momentum in the near term. 

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Versus the start of 2026, Rivian stock is currently down more than 10%.

RIVN stock tanked following the capital raise announcement mostly because of near-term dilution concerns.

Management's plans of flooding the market with 75 million new shares, plus an optional 11.25 million shares for underwriters, dilutes existing shareholders by roughly 6%. 

All in all, the share sale serves as a stark reminder for shareholders that Rivian continues to burn cash at a rapid pace and the broader EV segment remains super capital intensive. 

That said, Barchart retains its "48% BUY" opinion on Rivian, indicating technical momentum hasn't yet turned its back on the EV stock entirely. 

Not all that came out of Rivian Automotive on Tuesday morning was negative, though. 

The company posted upbeat preliminary Q2 results, projecting at least $1.55 billion in revenue, handily beating both the consensus estimate of $1.46 billion and last year's figure of $1.30 billion. 

While this operational strength makes a compelling long-term case for buying the dip in RIVN today, conservative investors are recommended to wait. 

Why? Mostly because the EV maker remains structurally unprofitable and its capital raise confirms that achieving the necessary volume for sustainable gross margins will require substantial outside funding.  

Crucially, Rivian shares don't pay a dividend either to incentivize ownership despite these concerns.

RIVN shares are rather unattractive to own at current levels also because Wall Street firms aren't particularly bullish on them for the remainder of 2026. 

According to Barchart, the consensus rating on Rivian Automotive sits at "Hold," with the mean price target of $17.89 no longer indicating meaningful upside from current levels. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com