Why EV Stock Arrival (ARVL) Plummeted 15% Today

Shares of electric vehicle (EV) manufacturer Arrival (NASDAQ: ARVL) are down 15% today after the company announced today it will offer 25 million of its ordinary shares in a follow-on offering.

Arrival shares were hit as the company seeks to raise over $500 million through the stock offering and sale of green bonds, with the latter expected to generate $200 million.

Underwriters, Goldman Sachs, J.P. Morgan, Barclays, and Cowen, have the option to purchase up to 3,750,000 additional ordinary shares. All shares are being offered by the company itself.

Earlier this year, Arrival said it is on track to meet planned product launches dates. The company has a truck order agreement with UPS that could generate $1 billion in revenue from the sale of up to 10,000 vehicles. In total, non-binding orders stood at 59,000.

UK-based Arrival has a market cap of $7.1 billion.

Arrival shares are now down 58% YTD.

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