Kodiak Robotics' stock experienced a significant 37.58% plunge in post-market trading on Thursday. The autonomous vehicle company's shares fell sharply following the release of its financial updates.

The dramatic decline appears to be primarily driven by the company's announcement of a $100 million private placement (PIPE financing). According to reports, Kodiak AI raised the funds by selling approximately 15 million shares at $6.50 per share in a private placement to both existing and new investors.

Such private placements often involve selling shares at a discount to current market prices, which can dilute existing shareholders and typically lead to negative market reaction. Despite reporting better-than-expected first quarter results with earnings of $0.10 per share and revenue of $1.8 million, and announcing positive business developments including strategic collaborations and international expansion, the market focused on the dilutive effect of the substantial equity financing.