Rivian Automotive (NASDAQ: RIVN) shares sank more than 12% in early trading Tuesday to hit an all-time low. The drop came after the company announced in a Securities and Exchange Commission filing that it was raising additional capital. The stock was down by 11.5% as of 10:40 a.m. ET.

Rivian shares had recovered somewhat from a drop last week after the company reported its fourth-quarter and full-year 2022 earnings. But today's news has investors bailing from the electric vehicle (EV) start-up once again. That's because the $1.3 billion convertible bond offering will dilute existing shareholders if those bonds are eventually converted to common stock.

Last week, Rivian reported a net loss of $1.7 billion in the fourth quarter and $6.8 billion for the full year last year. It still held $12.1 billion in cash and equivalents as of December 31, 2022, but that was down from $17 billion on March 31. The company has previously said it only had enough capital to fund its operations through 2025.

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Source Fool.com