This little EV maker still has a lot to prove.Rivian (RIVN 3.43%) was one of the hottest IPOs of 2021. The electric vehicle maker went public at $78 on Nov. 10 and closed at its record high of $172.01 six days later. It initially impressed the bulls because it had already started mass-producing its first vehicles, and it was backed by Amazon (AMZN 0.79%) and Ford (F +1.45%). The buying frenzy in hypergrowth and meme stocks in late 2021 further inflated its valuations and amplified its gains.At its peak, Riv ...

Rivian has spent nearly two years building its own AI assistant, an effort that remains separate from its multi-billion dollar technology joint venture with Volkswagen, TechCrunch has learned.Rivian hasn’t revealed when it will put the AI assistant in consumers hands. However, in an interview earlier this year, Rivian’s software chief Wassym Bensaid told TechCrunch it was targeting the end of the year. The company will likely share more during its upcoming AI and Autonomy day, which will be live streamed st ...

Core Insights - Rivian Automotive, Inc. is a significant player in the electric vehicle market, particularly known for its R1T pickup and R1S SUV, which target the high-end segment similar to Tesla's early offerings [1] - The company's future growth is heavily reliant on the upcoming R2 mass-market SUV, priced at $45,000, which aims to broaden its market reach [1][3] Stock Performance - RBC Capital has updated Rivian's rating to "Sector Perform," suggesting investors hold the stock, which was priced at $17.54 at the time of the update [2] - The stock has experienced a slight decline to $17.51, reflecting a 0.14% drop, although it reached a yearly high of $18.17 [2] - Rivian's market capitalization stands at approximately $21.39 billion, with trading volumes exceeding 15.3 million shares [3] Market Activity - The stock has fluctuated between $17.43 and $18.17 recently, indicating active investor interest [3] - Over the past year, Rivian's stock has seen a low of $10.36, showcasing its volatility [3] Strategic Positioning - Rivian's strategy mirrors Tesla's successful approach by introducing a more affordable model to increase market volume, with the R2 SUV potentially doubling its stock value [3] - The successful capture of the mass market by the R2 SUV could significantly enhance Rivian's market presence, akin to Tesla's transformation with the Model 3 [3]

Core Insights - Rivian's upcoming R2 SUV is positioned as a potential catalyst to significantly increase the company's stock value, similar to how Tesla's Model 3 transformed its market presence [3][4] - The R2, priced at $45,000, aims to penetrate the mass market, moving Rivian from a niche luxury brand to competing with mainstream vehicles like the Toyota RAV4 and Honda CR-V [8][9] - Rivian's strategy includes learning from Tesla's manufacturing challenges to avoid pitfalls and enhance production efficiency [5][9] Market Positioning - Rivian's current offerings, the R1T and R1S, are high-priced vehicles, limiting market reach; the R2 is crucial for expanding its customer base [3][4] - The R2's design focuses on ruggedness and simplicity, differentiating it from competitors like the Tesla Model Y, which has design limitations [8][9] Manufacturing Strategy - Rivian has opted to produce the R2 in its existing Illinois facility instead of building a new factory in Georgia, saving $2.25 billion and reducing risk [9] - The R2 utilizes "Zonal Architecture" to simplify production, reducing costs and assembly time [9] Financial Projections - Revenue growth is projected at 28% for the upcoming year, with potential to reach $13 billion by 2028 if annual growth hits 35% [9] - Rivian aims for a Bill of Materials (BOM) of $32,000 per R2 vehicle, which, along with cost reductions, could lead to a 10% net margin by 2028, translating to $1.3 billion in net income [9] Valuation Outlook - A conservative P/E multiple of 30x applied to projected earnings suggests a market cap of $40 billion, indicating a potential 2x upside from current stock levels [9]

Rivian recalled 34,824 electric delivery vans after identifying a safety defect that could stop the driver’s seat belt from restraining occupants in a crash, the EV maker said in a notice.The electric delivery van models affected by the recall, announced Nov. 18, are most prominently used in Amazon’s delivery fleetThe vans in question were produced from Dec. 10, 2021 through Nov. 8 of this year. 3 Rivian recalled 34,824 electric delivery vans after identifying a safety defect that could stop the driver’s ...

Rivian Automotive (RIVN), the electric vehicle (EV) manufacturer best known for producing Amazon's (AMZN) delivery vans, has drawn significant scrutiny and intrigue with its decision to award CEO RJ Scaringe a potential $4.6 billion pay package over the next decade. The package is tied entirely to performance, mirroring in spirit the incentive structure that once propelled Elon Musk at Tesla (TSLA), though on a smaller scale. Under this plan, Scaringe will have the opportunity to purchase up to 36.5 milli ...

Core Insights - Rivian's stock (NASDAQ: RIVN) surged over 23% following Q3 results that exceeded expectations, with revenue growing 78% year-over-year to $1.56 billion and gross profit turning positive at $24 million, marking an end to two consecutive quarters of losses [2][3] - Despite this improvement, the stock remains significantly below its 2021 IPO price of around $130, currently trading near $15 [2] Financial Performance - Rivian's revenue is projected to increase from $55 million in 2021 to approximately $4.97 billion in 2024, reflecting a compounded annual growth rate of 73% per year [8] - The company anticipates slower growth of about 8% this year, reaching $5.4 billion, but expects a sales surge of around 32% in 2026 to approximately $7.1 billion [9] - If sales grow by about 35% from 2026 onward, revenues could rise to about $13 billion by 2028 [9] Growth Strategy - Rivian is focusing on scaling its production capacity, increasing its Illinois facility to 215,000 units and establishing a new plant in Georgia with a capacity of 400,000 units by 2028 [6] - The introduction of the R2 midsize SUV, anticipated in 2026 at approximately $45,000, is seen as a significant growth catalyst aimed at penetrating the mass market [5][6] Partnerships and Collaborations - Rivian is deepening its collaboration with Volkswagen through a joint venture, integrating Rivian's EV architecture and software into VW models starting in 2027, with Volkswagen committing $1 billion and plans to increase that to $5.8 billion [7] - This partnership aims to commercialize Rivian's software-defined vehicle platform, potentially creating a new revenue source beyond vehicle sales [7] Margin Improvement - Rivian is focused on cost reduction and improving margins, with a surprising gross margin surpass in Q3 2025 [10] - The company aims to reduce the R2's bill of materials to around $32,000 per vehicle, which could significantly enhance gross margins [10] - If adjusted net margins reach about 10% by 2028, this could lead to net income of approximately $1.3 billion for FY '28 [10] Valuation Potential - Rivian could see a richer valuation if it successfully ramps up EV production and begins licensing its EV architecture and technology, potentially achieving a market cap of around $40 billion, nearly 2.2x current levels [11]

Core Insights - Rivian has established a new 10-year compensation plan for CEO RJ Scaringe, potentially worth up to $4.6 billion, linking his pay to the company's future profitability and stock performance [1][4][8] Group 1: Compensation Plan Details - The new compensation plan is designed to retain the founder and ensure focus on growth and profitability, replacing a previous plan with higher stock price targets [4][6] - The new stock price target range is set between $40 and $140 per share, significantly lower than the previous range of $110 to $295 per share [4][6] - Scaringe will receive options to purchase up to 36.5 million shares of Class A stock, an increase of approximately 16 million shares from the previous plan, with an exercise price of $15.22 per share [6][8] Group 2: Financial Implications - If fully realized, Scaringe could earn around $4.6 billion, while shareholders could see total returns of approximately $153 billion [8] - Rivian's board has also doubled Scaringe's base salary to $2 million, aligning executive compensation more closely with shareholder returns [8] Group 3: Market Context - The announcement of Rivian's plan coincides with Tesla shareholders approving a $1 trillion compensation plan for Elon Musk, which is also linked to future performance and market value targets [9] - Rivian's compensation structure, while not a direct imitation of Tesla's, shows clear influences from Musk's model, as more companies adopt high-incentive plans tied to market growth [9]

Core Viewpoint - Rivian has established a new compensation plan for CEO RJ Scaringe, potentially worth up to $4.6 billion over the next decade, linking his pay to the company's future profitability and stock performance, with lower performance thresholds compared to previous plans [1][4]. Compensation Plan Details - The new plan aims to retain the founder and ensure focus on growth and profitability, replacing a previous plan that set stock price targets between $110 and $295 per share, which Rivian deemed difficult to achieve [4]. - The new stock price target range is set between $40 and $140 per share [4]. - Scaringe will receive options to purchase up to 36.5 million shares of Class A stock, an increase of approximately 16 million shares from the previous plan, with an exercise price of $15.22 per share [6]. Performance and Potential Value - The potential value of the compensation plan is contingent on performance metrics, with estimates suggesting Scaringe could earn around $4.6 billion if all targets are met, while shareholders could see total returns of approximately $153 billion [7]. - Rivian's board has also doubled Scaringe's base salary to $2 million, aligning executive compensation more closely with shareholder returns [7]. Market Context - The announcement of Rivian's new plan coincides with Tesla shareholders approving a $1 trillion compensation plan for Elon Musk, which is also linked to future performance and market value targets [8]. - Rivian's plan, while not a direct imitation, shows characteristics inspired by Musk's approach, reflecting a trend among companies to tie high incentives to potential market growth [8]. Additional Developments - Rivian has disclosed that Scaringe has been granted 1 million stock units in a newly established subsidiary, Mind Robotics, which focuses on industrial AI technology [9]. - Scaringe will chair the board of Mind Robotics and can earn up to 10% economic interest if the company exceeds specific profit thresholds [9].

Core Insights - Rivian Automotive Inc. has shown limited progress in the electric vehicle sector despite a 78% revenue increase to $1.56 billion, compared to $1.3 billion in the previous quarter [1][2] - The company reported a net loss of $1.16 billion for the quarter, slightly higher than the $1.1 billion loss in the same quarter last year [2] - Rivian produced 10,720 vehicles and delivered 13,201 during the quarter, while also reducing its total target for 2025 [2] Product Development - Rivian is banking on the upcoming R2 model, set to launch next year with a base price of $45,000, significantly lower than its current models, which range from $71,000 to $122,000 [3] - Preparations for the R2 launch in the first half of 2026 are reportedly on track [3] Market Challenges - The U.S. electric vehicle market is facing a downturn, with expectations that EV sales will drop from 8% of new vehicle sales in Q3 to 4% in Q4 and into the following year [4] - Challenges such as range anxiety, tire wear, and insufficient public charging infrastructure continue to hinder EV adoption [4] Stock Performance - Rivian's stock has declined by 6% this year, while the broader market has increased by 16%, and even Tesla's stock has risen by 4% despite its own struggles [5][6] - The recent earnings report did not significantly alter investor sentiment regarding Rivian's future prospects [5][6]