Rivian Automotive Inc. (NASDAQ:RIVN) shares saw a notable increase on Monday afternoon, propelled by the board’s endorsement of a new 10-year compensation plan for CEO RJ Scaringe. This performance-based package is linked to ambitious stock price targets and profitability goals, reflecting a strong belief in the company’s long-term vision.
Following a week marked by volatility yet underscored by positive fundamentals, Rivian’s rally builds on recent achievements. Last Tuesday, the electric vehicle manufacturer reported an impressive third-quarter revenue of $1.56 billion, demonstrating a remarkable 78% growth year-over-year. Additionally, the company announced its first-ever consolidated gross profit of $24 million, showcasing significant operational progress.
In a strategic move to enhance operations, Rivian also revealed the spinoff of its industrial AI unit, Mind Robotics, which successfully secured $110 million in external seed funding. Rivian maintains a 40.6% minority stake in the new entity, indicating confidence in its future prospects.
Despite the operational successes, Rivian’s stock experienced a minor setback late last week, amidst mixed analyst sentiments, with JPMorgan reiterating an Underweight rating. However, today’s trading shows that investors are optimistic about the company’s enduring positive momentum.
According to Benzinga Edge Rankings, Rivian’s stock displays strong Momentum with a score of 77.66, though this is moderated by a lower Growth score of 32.31. As of the latest figures, Rivian Automotive shares were up 7.42%, trading at $16.36.
For investors interested in Rivian, shares can be purchased through a brokerage account. Investing in fractional shares is an option for those who prefer to invest smaller amounts. For instance, a $100 investment in Rivian at the current trading price of approximately $16.43 would allow ownership of around 6.09 shares.
On the other hand, those looking to bet against Rivian would require access to an options trading platform or a broker that accommodates short selling, which involves borrowing shares to sell high and buying them back at a lower price.
Rivian’s notable advancements and strategic initiatives position the company favorably within the competitive EV market, indicating a hopeful outlook for investors as it continues to execute its long-term strategy.