Rivian shares, which were once traded as the new Tesla, have suffered a lot since going public four years ago. These are the reasons for the downward spiral.
• Continued high losses and weak production figures are a burden
• Potential billion-dollar compensation package for CEO Scaringe outrages investors
• Around 80 percent price loss for Rivian shares since IPO in November 2021
The story of the electric car manufacturer Rivian began with a bang on the trading floor. In the hope that the Tesla story would repeat itself, the shares recorded an increase of around 30 percent above the issue price of $78 each on the first day of trading and even scratched the $130 mark at one point. The company raised around $12 billion in the IPO.
Continued high losses are weighing on the price
But the hype only lasted a short time: the electric car manufacturer was unable to live up to expectations and the price halved within a year. The low point followed in 2024, when the share temporarily fell to a price of $8.63 per share. The NASDAQ stock recently closed at $15.56, but is still in a difficult phase (closing price as of November 25, 2025).
Because persistently high losses are thwarting Rivian’s plans. As an SEC filing shows, there was a net loss of $1.16 billion in the third quarter of 2025 alone. Overall, the losses for the current year amount to 2.82 billion US dollars.
Weak production figures and difficult competitive environment
In addition to the horrendous losses, there is also a weakness in production: As the company’s announcement for Q3 shows, just over 10,000 vehicles rolled off the assembly line in the reporting period. As “The Auto Wire” reports, the production numbers are negligible compared to the industry leader Tesla and other competitors.
According to skeptics, Rivian’s announced R2 model may be the last chance to survive in the highly competitive market. Ford’s Mach-E, Hyundai’s Ioniq 5 and Tesla’s Model Y move into spheres that Rivian can only dream of.
New compensation package for CEO Scaringe causes investor confidence to wane
Although the electric car manufacturer is currently in a precarious phase, a salary increase for CEO RJ Scaringe recently caused a stir: it was only announced at the beginning of November that the Rivian boss’s salary had been increased. The background is to “keep and motivate” Scaringe, according to “Business Insider”.
Specifically, this involves doubling his base salary to $2 million. There is also a purchase option of up to 36.5 million Rivian shares, which is linked to certain goals. Overall, the compensation package can increase to up to $4.6 billion. According to The Auto Wire, investors reacted angrily to the pay increase for CEO RJ Scaringe – especially because the company is going through a difficult period.
Rivian future depends on R2 model
Despite the latest developments, analysts and market observers are not completely writing off Tesla’s competitor: according to data from TipRanks, five analysts have a buy recommendation, eight have a hold recommendation and five others have a sell recommendation. Although the analyst consensus does not believe Rivian has any upside potential, the company is fundamentally exciting.
Overall, Rivian shares have lost almost 80 percent of their value since the IPO in November 2021 (as of November 25, 2025). What happens next for the electric car manufacturer depends largely on the performance of the R2 SUV model announced for 2026.
Editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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