Earlier this month, the Carmaker of Electric Rarmaker revealed a compensation plan worth 46 billion dollars. In a soft EV market, and without the financial push or investor rush that Tesla once had, those goals seem very watered down.
In a sec filing, Rivian’s board said the package was designed to be conservative as the company enters “the next phase and prepares to launch the production of its new electric SUV, the R2. PLAN TO DISCONTINUE THE COMPLAINT OF FREE ENERGY FINANCES GETTING THROUGH RINED MILLA DOR STRONIMB Scaringe can acquire an additional 14.5 million shares if Rivian meet cash flow targets before 2032. He could use his first tranche for $40 a share. Scaringe currently owns about 1 percent of Rivian. If the plan goes through, he could add another 3 percent.
Unlike Musk’s plan, Scaringo’s award does not require a shareholder vote, because it was issued under the approved 2021 plan. Rivian’s board ultimately sees the original performance goals as unrealistic, including the stock’s return target of hitting $295.
Tesla’s story is hard to replicate
Most of Scaringe’s WINDFALL Linges succeeded in the success of the new $45,000 R2 SUV and the small R3, which is expected to be priced in the mid-$30,000 range and has already generated significant consumer interest.
Rivian faces a very different environment than Tesla did during its initial ascent. Tesla benefited from low interest rates, diversified capital, and an early boom in EV enthusiasm. Musk is also riding a wave of different tailwinds – from meme-stock mania to quick profit and colk-like following – that helped him achieve some of the best goals of his beloved 2018 package.
And a successful EV business is far from enough. Since reaching a profit in 2019, Tesla’s top stock value has become increasingly bullish on its non-automotive products, such as software and robotics.
Rivian’s non-EV prospects are unclear and appear to rely on external partnerships. At the beginning of the year, the company created a joint project with the Volkswagen Group to develop “software-defined structures” designed by R2 and R3, which are Rivian temples, which Rivian hopes will move the company to more cost-effective, high-quality components.
But Rivian’s financial picture remains bleak. The company recently missed the expectations of Wall Street Reallings, laid off 4.5 percent of its workforce in October, settled the law for $ 250 million more than R1 Price Hikes, and restructured the top leadership. Although Scaringe is well liked by Rivian owners, they have an interesting Musk tragedy. Meanwhile, Rivian is facing a similar nationwide cooling in EV demand — exacerbated by cuts to EV tax credits — that is weighing on all major automakers.