Rivian CEO RJ Scaringe has unveiled a $4.6 billion compensation plan that mirrors Elon Musk's deal, but replicating Tesla's playbook may be a tall order for Rivian.
The package, which includes doubling Scaringe's annual base salary from $1 million to $2 million and the right to buy up to 22 million shares across 11 tranches if certain stock price milestones are reached, has drawn comparisons to Musk's $1 trillion deal. However, unlike Tesla's plan, Rivian's award does not require a shareholder vote, as it was issued under an already approved 2021 incentive program.
Rivian faces a challenging landscape, with a softening EV market and no financial momentum or investor fervor that once buoyed Tesla. The company's stock price is currently trading at around $15, which is significantly lower than its target of $140. Meeting this target will be an uphill battle for Rivian, especially considering the current nationwide cooling in EV demand.
Unlike Tesla, which benefited from low interest rates and abundant capital during its early days, Rivian has struggled to replicate this success. The company recently missed Wall Street earnings expectations and laid off 4.5% of its workforce in October. It also settled a $250 million lawsuit over R1 price hikes and restructured top leadership.
While Scaringe is well-liked by Rivian owners, he lacks the cult-of-personality advantage that Musk enjoys. The new $45,000 R2 SUV and smaller R3, which has already generated significant consumer interest, will be crucial for Rivian's success. However, even if these vehicles are successful, it remains to be seen whether Scaringe's compensation plan will vest fully.
Rivian's non-EV prospect, which is reliant on external partnerships, is less clear and faces the same challenges as Tesla. The company has formed a joint venture with Volkswagen Group to develop a scalable "software-defined vehicle" architecture, but it remains to be seen whether this technology will drive significant growth for Rivian.
In conclusion, while Scaringe's compensation plan mirrors Musk's deal, replicating Tesla's playbook may be a difficult task for Rivian. The company faces numerous challenges, including a softening EV market and no financial momentum or investor fervor that once buoyed Tesla. It remains to be seen whether Rivian can overcome these hurdles and deliver the promised growth and success under Scaringe's leadership.
The package, which includes doubling Scaringe's annual base salary from $1 million to $2 million and the right to buy up to 22 million shares across 11 tranches if certain stock price milestones are reached, has drawn comparisons to Musk's $1 trillion deal. However, unlike Tesla's plan, Rivian's award does not require a shareholder vote, as it was issued under an already approved 2021 incentive program.
Rivian faces a challenging landscape, with a softening EV market and no financial momentum or investor fervor that once buoyed Tesla. The company's stock price is currently trading at around $15, which is significantly lower than its target of $140. Meeting this target will be an uphill battle for Rivian, especially considering the current nationwide cooling in EV demand.
Unlike Tesla, which benefited from low interest rates and abundant capital during its early days, Rivian has struggled to replicate this success. The company recently missed Wall Street earnings expectations and laid off 4.5% of its workforce in October. It also settled a $250 million lawsuit over R1 price hikes and restructured top leadership.
While Scaringe is well-liked by Rivian owners, he lacks the cult-of-personality advantage that Musk enjoys. The new $45,000 R2 SUV and smaller R3, which has already generated significant consumer interest, will be crucial for Rivian's success. However, even if these vehicles are successful, it remains to be seen whether Scaringe's compensation plan will vest fully.
Rivian's non-EV prospect, which is reliant on external partnerships, is less clear and faces the same challenges as Tesla. The company has formed a joint venture with Volkswagen Group to develop a scalable "software-defined vehicle" architecture, but it remains to be seen whether this technology will drive significant growth for Rivian.
In conclusion, while Scaringe's compensation plan mirrors Musk's deal, replicating Tesla's playbook may be a difficult task for Rivian. The company faces numerous challenges, including a softening EV market and no financial momentum or investor fervor that once buoyed Tesla. It remains to be seen whether Rivian can overcome these hurdles and deliver the promised growth and success under Scaringe's leadership.
This compensation plan for RJ Scaringe is pretty sweet, but I'm not sure if it'll pay off 
. He's trying to replicate Elon Musk's deal, but Rivian has a tough road ahead 
. The EV market is cooling down and their stock price is like $15 
compared to Tesla's $140 
. And what about non-EV plans? 
That joint venture with Volkswagen sounds promising, but it's hard to say if it'll bring growth 
. I'm keeping an eye on Rivian, but I think Scaringe needs to prove himself 
. Can he deliver? 
. It's one thing to motivate employees, but when you're struggling to meet sales targets and facing stiff competition in the EV market, you gotta ask yourself if that kind of money is being used effectively 
, so it'll be interesting to see how this plan plays out. Can Scaringe really deliver on the promise of making Rivian a success? 
.
. But hey, I'm all for Scaringe's efforts to get those new SUVs off the ground! The R2 and R3 are supposed to be game-changers, so fingers crossed they'll bring in some much-needed cash 
I mean, who needs a $4.6 billion compensation plan when you're already making $1 million? 
Like, RJ Scaringe has been raking it in just fine on his own. And honestly, $45,000 for an SUV? That's not gonna cut it in this market... unless he's also planning to release a bunch of "Rivian-branded" coffee mugs 
. Elon Musk is like a rockstar CEO who's got everyone eating out of his hand 
. RJ Scaringe is cool and all, but he's no Musk when it comes to getting people hyped about his company 
. And on top of that, they've got a whole bunch of layoffs and lawsuits going on... it's like, how can you build momentum when your own people are against you? 
. The new R2 SUV and R3 are actually kinda cool 
, and the software-defined vehicle thingy with VW is an interesting move 
️.
. However, I'm not sure if replicating Tesla's playbook will be easy peasy for Rivian 
. It's time to see some real growth and success from this company! 
!
RJ scaringe's compensation plan is cool and all but let's be real, he can't replicate musk's magic 
that guy has a cult following for a reason! and now rivian is trying to follow in his footsteps 
it's like they're trying to recreate the tesla effect without actually understanding what makes it tick 
plus their stock price is tanking 
. Scaringe's got a tough road ahead of him, especially with the EV market slowing down and no clear non-EV prospects