Rivian's stock price has seen a significant surge in recent days, with shares rising over 18% this week alone. The automaker's recent quarterly earnings report and announcement of a substantial pay package for CEO RJ Scaringe were major factors contributing to the sudden increase.
On Tuesday, Rivian's shares jumped by 9.6%, marking an 18.1% increase since they closed at $15.23 last week, and a staggering 45% rally since their lowest point of just $12.39 in November. This rapid price appreciation follows Rivian's third-quarter earnings report, which revealed revenue of $1.56 billion and an earnings loss per share of 65 cents. However, the company managed to beat analysts' estimates on both fronts.
One key reason for the stock surge is the significant boost in gross profit from software and services provided by Rivian's joint venture with Volkswagen. The partnership has announced plans to invest over $5.8 billion in the electric vehicle startup, providing a substantial injection of capital and cementing its position as a major player in the industry.
CEO Scaringe's new pay package is another factor driving the stock price upward. The deal doubles his base salary to $2 million and grants him the option to purchase up to 36.5 million additional shares, with around 22 million locked behind specific stock price milestones. This could potentially unlock a massive amount of shareholder value, estimated at over $153 billion.
Industry analysts have welcomed the new pay package as a positive development for Rivian, particularly in comparison to an earlier deal that required the company to achieve a much higher stock price threshold. The compensation plan has been described as "much more reasonable" than those offered by other companies, such as Tesla's massive $1 trillion deal for CEO Elon Musk.
Rivian's record share price of $17.99 on Tuesday represents a significant increase from its lowest point just last month, when shares plummeted to $8.26. The company's stock price has dropped by nearly 95% since its peak in November 2021, but the recent surge suggests that investors are increasingly optimistic about Rivian's prospects for growth and success.
On Tuesday, Rivian's shares jumped by 9.6%, marking an 18.1% increase since they closed at $15.23 last week, and a staggering 45% rally since their lowest point of just $12.39 in November. This rapid price appreciation follows Rivian's third-quarter earnings report, which revealed revenue of $1.56 billion and an earnings loss per share of 65 cents. However, the company managed to beat analysts' estimates on both fronts.
One key reason for the stock surge is the significant boost in gross profit from software and services provided by Rivian's joint venture with Volkswagen. The partnership has announced plans to invest over $5.8 billion in the electric vehicle startup, providing a substantial injection of capital and cementing its position as a major player in the industry.
CEO Scaringe's new pay package is another factor driving the stock price upward. The deal doubles his base salary to $2 million and grants him the option to purchase up to 36.5 million additional shares, with around 22 million locked behind specific stock price milestones. This could potentially unlock a massive amount of shareholder value, estimated at over $153 billion.
Industry analysts have welcomed the new pay package as a positive development for Rivian, particularly in comparison to an earlier deal that required the company to achieve a much higher stock price threshold. The compensation plan has been described as "much more reasonable" than those offered by other companies, such as Tesla's massive $1 trillion deal for CEO Elon Musk.
Rivian's record share price of $17.99 on Tuesday represents a significant increase from its lowest point just last month, when shares plummeted to $8.26. The company's stock price has dropped by nearly 95% since its peak in November 2021, but the recent surge suggests that investors are increasingly optimistic about Rivian's prospects for growth and success.
I feel like it's like a mini vacation from work. Anyway, back to Rivian... I heard their CEO is gonna make a ton more money if they hit some stock price milestones. That's wild, right? It's like he's gotta sell a few of his own cars for personal use or something 
.
OMG, can you believe Rivian's stock is on FIRE right now? 
I mean, 45% rally since their lowest point in November? That's wild! 
And the CEO's new pay package? Game-changer! 
It's looking like Rivian might just be back on track after that crazy 95% drop in 2021 
. Industry analysts are loving this new deal too - way more reasonable than what Tesla's Elon Musk got. 
Anyway, I'm keeping a close eye on this one... riveting stuff! 
I mean, come on, a $153 billion unlock potential just because the CEO gets more shares? 
That sounds like a recipe for another Tesla-style market bubble to me... 
And what's up with the "much more reasonable" pay package compared to others? Is that even possible given how out of touch these companies are when it comes to real-world values? 
.
️ Rivian's stock is on 
! New pay package for CEO Scaringe = $153 BILLION potential unlocked 
Their software & services are bringin in the dough & it's only goin up from here 
. I mean, 45% rally since November? 
That's crazy talk! And don't even get me started on Scaringe's new pay package - he's basically set for life 
. Bring it on! 
.
rivian is killing it right now!!! i mean, $17.99 a share is insane! 
and that joint venture with vw is gonna be game changing for the company. software and services are where it's at, you feel? 
and investors are loving it! 
! I'm not surprised tho, their Q3 earnings report wasn't bad at all. $1.56 billion in revenue ain't no joke 
. But, I gotta ask, 45% rally since Nov? That's wild 
. CEO Scaringe's new pay package is def a positive tho 
. Much more reasonable than some other companies' deals 
from my buddy RJ Scaringe's cousin (he's not even related to me lol) and apparently his pay package is a GAME CHANGER 
anyway back to Rivian's stock surge... i think its awesome that they're getting all that cash from VW and it really shows how far they've come since those early days of, like, struggling to make a car 
It shows the company is confident in his leadership and values his contributions to Rivian's growth. Plus, the fact that it's more reasonable than what other companies are offering? 
That's like a breath of fresh air! And I love how their stock price has dropped so much since its peak, but now it's surging back up. 
It just goes to show that the market can change quickly and there's always room for growth and success. Bring on the electric vehicles and let's see where Rivian takes us next!