Aurora Innovation (AUR), a self-driving technology company, saw its stock plummet 14.07% in pre-market trading on Wednesday following a significant announcement from its major stakeholder, Uber Technologies. The sharp decline came as Uber revealed plans for a $1 billion offering of notes that would be exchangeable for Aurora stock, raising concerns about potential dilution and selling pressure.

Uber's announcement detailed that the senior notes, due in 2028, will be exchangeable into cash, or under certain conditions, units of reference property, or a combination of both, at Uber's discretion. Initially, each unit of reference property will comprise one Aurora share. The initial exchange rate is set at 117.6471 units of reference property per $1,000 principal amount of notes, translating to an exchange price of approximately $8.50 per share of Aurora common stock.

The relationship between Aurora and Uber dates back to December 2020, when Uber sold its self-driving car unit to Aurora and made a $400 million cash investment in the company. Despite the current downturn, Aurora's stock has shown strong performance this year, gaining about 16% since the start of 2025 and approximately 140% over the past 12 months. The company recently inked a long-term deal with Nvidia and Germany's Continental to deploy driverless trucks, highlighting its ongoing efforts in the autonomous vehicle sector.