After Rivian Automotive Inc. (NASDAQ: RIVN) went public four years ago, at $78 a share to raise $12 billion, the stock soared to $170 per share. This year, though, it has not traded above $15. The current price of $13.35 represents a decline of over 90% from its peak. In exchange for this significant destruction of wealth and billions of dollars in losses, founder and CEO R.J. Scaringe has been awarded a compensation package that could be worth as much as $4.6 billion over 10 years.
Quick Read
- The share price of Rivian Automotive Inc. (NASDAQ: RIVN) is almost 91% lower than its peak.
- The EV maker continues to struggle, and its prospects are dim.
- Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
The best thing about the package is the comment in the SEC filing that “the lack of incentive provided by the 2021 CEO Performance Award due to the unlikeliness of attainment of the associated performance goals” was the reason for the change. In other words, Scaringe has missed his previous pay targets so severely that they had to be replaced with easier ones.
A Dog
Rivian is a dog of a company. In the third quarter, it produced only 10,720 vehicles and sold 13,201. Revenue rose 78% year over year to $1.56 billion. However, it is more instructive to examine the preceding quarter, in which revenue was $1.30 billion. With the September 30 expiration of the federal $7,500 tax credit, Rivian’s revenue should have surged month over month as people rushed to get the incentive. They did not, as far as Rivian was concerned.
Rivian also lost $1.16 billion in the third quarter compared to a loss of $1.10 billion in the year-ago period. Through three quarters of 2025, Rivian has lost $2.82 billion.
Rivian is betting its future on a new vehicle with a price well below its current ones. The company will release its R2 in the first half of next year. This SUV will have a base price of $45,000. The current models are the R1S SUV and R1T pickup. The former is priced from $77,000 to $121,000, and the latter from $71,000 to $115,000.
Scaringe is dragging Rivian into what may be the most competitive segment of the electric vehicle (EV) market. Based on sales volume in this sector, it is nearly impossible to succeed in terms of competition. These include, at least, the Tesla Model Y, Ford Mustang Mach-E, Hyundai Ioniq 5, Kia EV6, and GM’s Blazer EV. To illustrate the difficulty of this part of the market, note that Ford is offering 0% APR financing for 72 months for the Mustang Mach-E.
The R2 does not have a chance. Aside from taking the company public, the new SUV will be Scaringe’s greatest mistake. Rivian shares have further to fall.
Rivian Stock Price Prediction and Forecast 2025–2030
If You’ve Been Thinking About Retirement, Pay Attention (sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:
- Answer a Few Simple Questions.
- Get Matched with Vetted Advisors
- Choose Your Fit
Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)
The post Rivian Shares Collapse 91% appeared first on 24/7 Wall St..
