Shares of Rivian Automotive had been sharply decrease in early buying and selling Thursday, after the corporate shocked buyers with a plan to supply $1.5 billion in convertible notes.

It additionally offered a preliminary estimate of its third-quarter income that was in step with Wall Street estimates.

Shares had been down 16% as of 10 a.m. ET.

In a regulatory submitting late Wednesday, Rivian stated it expects its third-quarter income to come back in between $1.29 billion and $1.33 billion, roughly in step with Wall Street estimates of $1.3 billion, in accordance with LSEG, previously often called Refinitiv.

Rivian additionally estimated that it had money and equivalents of $9.1 billion as of Sep. 30, down from $10.2 billion on the finish of the second quarter.

Rivian took steps earlier this 12 months to sluggish spending and bolster its steadiness sheet, together with a 6% workers discount in February and a $1.3 billion sale of convertible notes in March. The firm additionally delayed the launch of its upcoming smaller R2 car platform to 2026, from 2025. But information of the most recent providing got here as a shock to buyers.

Rivian plans to supply $1.5 billion price of senior, unsecured “green” convertible notes due in 2030. Buyers can have the choice to buy as much as a further $225 million price of notes, the corporate stated.

Rivian on Monday reported third-quarter deliveries that had been higher than Wall Street had anticipated. The EV maker will report its third-quarter earnings after the U.S. markets shut Nov. 7.