Investing.com - Rivian CEO Robert Scaringe sells $803,576 in company stock

[Zoidz]

Investing.com - Posting this for general interest, not implying any misdeeds or controversy about Rivian or RJ. What he did is absolutely normal and expected for a CEO startup comp plan, and he reinvested part of his stock sale in Rivian with a followup purchase. Many of us are investors so it's good to know what's happening.

Also note at the bottom of the article - a mention of Lucid Gravity woes.

Rivian Automotive , Inc. (NASDAQ:RIVN) Chief Executive Officer Robert J. Scaringe recently executed a significant transaction involving the company’s stock. On April 7, 2025, Scaringe sold 71,429 shares of Rivian’s Class A Common Stock at a price of $11.25 per share, amounting to a total of $803,576. This sale was conducted automatically under a Rule 10b5-1 trading plan, which was adopted on March 8, 2024, as disclosed in Rivian’s quarterly report. The transaction occurred as Rivian’s stock, currently trading at $11.79, has experienced significant volatility, with InvestingPro data showing a -13.5% decline in the past week.

In addition to the sale, Scaringe exercised stock options to acquire 71,429 shares at a price of $2.6282 per share, totaling approximately $187,729. Following these transactions, Scaringe owns 853,011 shares directly, with additional indirect holdings through an LLC and a trust. According to InvestingPro analysis, Rivian maintains strong liquidity with a current ratio of 4.7, and holds more cash than debt on its balance sheet, though the company faces challenges with negative profit margins.

These transactions reflect Scaringe’s ongoing management of his equity stake in the electric vehicle manufacturer, which continues to be a focal point for investors monitoring insider trading activities. For deeper insights into Rivian’s financial health, valuation metrics, and 12 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.


In other recent news, Rivian Automotive Inc. reported its first-quarter vehicle delivery and production numbers, surpassing both its guidance and analyst estimates. The company delivered 8,640 vehicles, exceeding Cantor Fitzgerald and Visible Alpha Consensus estimates of 8,113 and 8,217 vehicles respectively. Rivian also produced 14,611 vehicles, outperforming Cantor Fitzgerald’s forecast of 13,750 vehicles. Despite these achievements, Cantor Fitzgerald maintained a Neutral rating and a $15 price target on Rivian, citing the impact of auto parts tariffs on the company’s cost structure. Meanwhile, Canaccord Genuity reaffirmed its Buy rating and $23 price target for Rivian, highlighting the company’s potential to capitalize on the evolving electric vehicle market.


Lucid Group (NASDAQ:LCID) faced challenges with its Gravity SUV, experiencing delays due to unresolved safety testing issues, particularly with third-row seating. These delays may affect the company’s production timeline, with higher-volume production anticipated only by June or July. In related developments, Tesla (NASDAQ:TSLA) reported delivery numbers below expectations, while Rivian’s stock saw a decline after posting delivery numbers that slightly beat analyst expectations. Investors are closely monitoring these developments as companies navigate production and market challenges in the competitive electric vehicle sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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[Jonger1150]

"The transaction occurred as Rivian’s stock, currently trading at $11.79, has experienced significant volatility, with InvestingPro data showing a -13.5% decline in the past week."

Is this really fair to include given the week?

 

[DuoRivians]

He does this regularly for tax purposes. They’re 10b5 transactions. Nothing really

 

[andrewgrhogg]

Do those of you that don’t understand stock trading as an insider, which the CEO most definitely is….all C and V employees are basically locked out permanently, because at any given time they know something that will critically impact the stock price in the next day/week/month etc. So they are considered to have inside information and are banned from trading. They will get very few windows, if any, in which to trade. So instead they are allowed to specify dates and volumes of trades well ahead of time that execute automatically. Meaning those trades are done regardless of what info they have.

That’s all this is - he’s selling on an automated plan so that 99% of his wealth isn’t tied up in Rivian. Now he can diversify.

 

[Marchin_MTB]

Bathroom remodel.

 

[DCFC]

If I recall correctly, Rivian is on a quarterly RSU vesting schedule. So each quarter when RSUs are vested, a portion is automatically sold off to cover taxes. This is all an automated process.

 

[SASSquatch]

He does this regularly for tax purposes. They’re 10b5 transactions. Nothing really

He's selling allotments through a pre-planned scheduled set of transactions and he is then turning around and exercising his rights to buy additional shares at pennys on the dollar. This isn't anything unusual for CEOs.

 

[CharonPDX]

"The transaction occurred as Rivian’s stock, currently trading at $11.79, has experienced significant volatility, with InvestingPro data showing a -13.5% decline in the past week."

Is this really fair to include given the week?

This article was generated with the support of AI and reviewed by an editor

What they neglected to mention with that disclaimer is that the editor was AI, too...

 

[CharonPDX]

He's selling allotments through a pre-planned scheduled and he is then turning around and exercising his rights to buy additional shares at pennys on the dollar. This isn't anything unusual for CEOs.

And this is the least-objectionable way for a CEO to earn money. Unlike Musk, who just gets granted shares, almost never sells them, and draws no salary.

He pays almost no taxes. He just gets ultra-low-interest bank loans against his shares, with a lump-sum payment due a few years later, not monthly payments. A few years later, his stock value has massively increased again, so he gets a new loan, pays off the old loan and pulls out more "life expense" cash. Rinse, repeat.

Every few years, he'll make a big stink about selling off some shares and paying taxes on them. He does this as a performative thing. Yes, he's paying a lot of $ in taxes, but relative to his increase in net worth? It's minuscule. It's *FAR* less than if he had been drawing a big salary.

This isn't unique to Musk, either. Many "company founders" of ultra-high-value companies do this. Steve Jobs famously did this. Lots of smaller-company/less well known ultra-high-net-worth people do this.

RJ actually selling his shares on a schedule basis, paying the taxes, and actually paying money (options) for more shares instead of just getting them granted is downright reasonable for a CEO.

 

[Electrified Outdoors]

Bathroom remodel.

Going through one of those now. Not sure 800k will be enough

 

[ThirteenElectrics]

Every time RJ vests options, he exercises them. However, he always sells more than it costs to exercise and he also sells more than he needs to cover taxes on the vests. He uses the option exercises as a diversion to actually divest himself of Rivian stock. Which isn't bullish, but sometimes you need to pay for things. If he were super bullish the would borrow against the shares instead.

Claire, the CFO, sometimes outright sells stock without even using option vesting as a cover story. Also not bullish.

These are all planned sales, but the execs get to write the plan. So they can choose to sell or not. Or they can cancel the plan.

 

[SASSquatch]

And this is the least-objectionable way for a CEO to earn money. Unlike Musk, who just gets granted shares, almost never sells them, and draws no salary.

He pays almost no taxes. He just gets ultra-low-interest bank loans against his shares, with a lump-sum payment due a few years later, not monthly payments. A few years later, his stock value has massively increased again, so he gets a new loan, pays off the old loan and pulls out more "life expense" cash. Rinse, repeat.

Every few years, he'll make a big stink about selling off some shares and paying taxes on them. He does this as a performative thing. Yes, he's paying a lot of $ in taxes, but relative to his increase in net worth? It's minuscule. It's *FAR* less than if he had been drawing a big salary.

This isn't unique to Musk, either. Many "company founders" of ultra-high-value companies do this. Steve Jobs famously did this. Lots of smaller-company/less well known ultra-high-net-worth people do this.

RJ actually selling his shares on a schedule basis, paying the taxes, and actually paying money (options) for more shares instead of just getting them granted is downright reasonable for a CEO.

This is how rich people stay rich. They borrow against their assets and pay virtually no taxes on the ultra low-interest loans that they actually use for income.

 

[CharonPDX]

This is how rich people stay rich. They borrow against their assets and pay virtually no taxes on the ultra low-interest loans that they actually use for income.

Yep.

Many years ago between jobs, I took a temp job working at an accounting firm. They had just acquired another firm's business - a firm that specialized in high-net-worth families - but because of various contracts, they weren't allowed to transfer the original files, they had to photocopy them all. That was my temp job - spending 8 hours a day photocopying financial files.

Saw some pretty ridiculous "approved by a tax professional" tax dodges. This was just one of them. Another was a CEO who owned his own private plane, rented it out to the company, scheduled "officer meetings" in faraway vacation locales, and had CEO+board member meetings there (oh yeah, his wife and kids were board members.) The company paying them for their time, paying for the plane, paying him to pilot the plane. This wasn't some Fortune 500 CEO, this was just a guy who owned a smaller manufacturing business, the private plane was a prop plane. He was getting compensated multiple times, as "expenses" not salary, and writing all of it off on either personal or business taxes.

 

[SASSquatch]

Yep.

Many years ago between jobs, I took a temp job working at an accounting firm. They had just acquired another firm's business - a firm that specialized in high-net-worth families - but because of various contracts, they weren't allowed to transfer the original files, they had to photocopy them all. That was my temp job - spending 8 hours a day photocopying financial files.

Saw some pretty ridiculous "approved by a tax professional" tax dodges. This was just one of them. Another was a CEO who owned his own private plane, rented it out to the company, scheduled "officer meetings" in faraway vacation locales, and had CEO+board member meetings there (oh yeah, his wife and kids were board members.) The company paying them for their time, paying for the plane, paying him to pilot the plane. This wasn't some Fortune 500 CEO, this was just a guy who owned a smaller manufacturing business, the private plane was a prop plane. He was getting compensated multiple times, as "expenses" not salary, and writing all of it off on either personal or business taxes.

Bingo. John Travolta has a private plane (he has a commercial pilots license) and when he was doing films (in his heyday) he would make the studios pay him for taking his plane to various locations, including his salary as a pilot, fuel costs, etc. He then wrote those costs off since he is a business.

The only suckers in this world are those of us who whose income that comes from worked wages. We are the backbone of the tax code while the rich do nothing but evade.

 

[mkg3]

Bingo. John Travolta has a private plane (he has a commercial pilots license) and when he was doing films (in his heyday) he would make the studios pay him for taking his plane to various locations, including his salary as a pilot, fuel costs, etc. He then wrote those costs off since he is a business.

The only suckers in this world are those of us who whose income that comes from worked wages. We are the backbone of the tax code while the rich do nothing but evade.

In this example, if Travolta was flying the plane, albeit his own plane, and doing something for the film production, then he is working as a pilot and not as an actor. Cost of fuel and maintenance is incurred as a result of the use. It's not much different than using a personal vehicle to do something for the company, then get reimbursed for the milage. GSA has a schedule for Privately Own Vehicle that includes aircraft (https://www.gsa.gov/travel/plan-a-t...ately-owned-vehicle-pov-mileage-reimbursement)

Most companies uses GSA rate since they can expense it on taxes and not raise an eyebrow for excessive reimbursement.

As for being "suckers" for relying on working wage as a sole income and don't like it then, one ought to do something about that instead of status quo. Save, invest and/or start a business to change the situation.

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