Rivian Automotive, Inc. (RIVN) experienced a pre-market plunge of 5.03% on Wednesday, extending losses from the previous trading session.

The decline 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 represents an approximate 6% discount to the stock's closing price prior to the announcement, contributing to 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. Market analysts have expressed concerns over whether the capital raise is sufficient given Rivian's ongoing cash burn, with the company being loss-making and having significant debt obligations. The stock had already tumbled 18% during Tuesday's regular session after the offering was initially disclosed.