Rivian Stock Is Up Today. So Is the CEO’s Salary.
Key Takeaways
- EV maker Rivian just gave its CEO a payraise of more than 50%
- The company surpassed all Q2 expectations as it eyes profitability in 2024
- Rivian stock (RIVN) is up 1.22% today
Investors are keen to find the next EV superstar (watch out, Tesla) and automakers are vying for the spot. Rivian and Lucid have both ramped up their production this year, and, just this week, Rivian also ramped up its CEO’s salary. Is Rivian going to be flying high? Or will it crash and burn? We’ll get into it below.
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What’s the temperature check on Rivian?
Rivian’s CEO, R.J. Scaring, just got a raise to $1 million a year. Rivian filed a notice with the Securities and Exchange Commission on Wednesday, indicating that Scaringe’s base salary is now $1 million a year, up from $650,000 previously. Over the past three years, the Rivian CEO’s total compensation comes to a total of about $424 million. $421 million of that came from the purchasing about 27 million shares of Rivian stock.
So, it seems the company is feeling confident. But how is Rivian’s stock looking from the outside?
Rivian beat all Q2 expectations, delivering 12,640 EVs in the second quarter, up 50% from Q1. Analysts’ predications hovered around 11,000. Rivian is not yet profitable, but Wedbush analyst Dan Ives wrote in the wake of those Q2 results: “Demand looks strong for Rivian and visibility (is) improving into 2024.”
Where does the stock stand now?
Institutional investors bought 61.32 million shares of Rivian last quarter, while selling only 34.13 million shares of the automaker. Separately, George Soros increased his stake in RIVN stock last quarter to 4.19 million shares from 3.58 million shares.
Japanese investment bank Mizuho raised its price target on the shares to $32 and another investment bank, Needham, doubled down on a “buy” rating.
On Tuesday of this week, Rivian stock spiked almost 9% in price, alongside other EV makers Fisker and Lucid, which both increased about 3%. On Monday, Chinese EV company BYD announced that its profit for the first half of this year jumped 205% higher compared to the first half of 2022. All boats — or EVs — are rising with the tide.
Today, Rivian stock is up 1.22% at time of writing.
The bottom line
Rivian has been hard at work to strengthen its position in the competitive EV landscape, and, so far, that seems to be paying off. We’re cautiously optimistic for Rivian. This is a company that seems to have plans in place to reach profitability next year. As of earlier this month, over half of the analysts covering Rivian stock had Buy ratings. We like those odds.
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