Rivian Shares Collapse 91%

"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"

"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 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."

Rivian went public at $78 per share, peaked near $170, and now trades at $13.35, a decline exceeding 90% from its high. Founder and CEO R.J. Scaringe received a compensation package that could be worth up to $4.6 billion, with prior performance targets described as unlikely to be attained and replaced with easier goals. In the third quarter Rivian produced 10,720 vehicles, sold 13,201, and reported revenue of $1.56 billion, a 78% year‑over‑year increase. The company lost $1.16 billion in the quarter and $2.82 billion through three quarters of 2025. Rivian plans an R2 SUV with a $45,000 base price to compete in a lower‑priced, highly competitive EV segment.

Read at 24/7 Wall St.