RJ buys the dip and picks up $1M of Rivian stock

[E Parx]

https://techcrunch.com/2022/05/16/rivian-founder-rj-scaringe-snaps-up-1m-worth-of-ev-makers-stock/

Interesting tidbit in there I wasn't aware of. Ford sold enough Rivian stock to get under 10% so they don't have to file a Form D with the SEC.

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[moosehead]

Or say, tries to catch the knife.

 

[R1Sky Business]

Looks like an inside job.

 

[mini2nut]

RJ is no dummy. Being the CEO he has insights as to what will be happening at Rivian in the next 5-10 years. I think this was a smart move on his part.

 

[LaunchGreen]

What is that, 1 thousandth of his net worth? Bold bet.

 

[swhme]

To be fair, he owns nearly 25m shares and added 41k or roughly 0.2%— this is immaterial to him, but he’s trying to reassure and positively signal the market…

 

[kurtlikevonnegut]

What is that, 1 thousandth of his net worth? Bold bet.

I'm not aware of how RJ's net worth is allocated but I'd expect the vast majority of it, probably greater than 90%, is held in RIVN. The fact that he would be willing to allocate a portion, possibly a very large portion, of his liquid wealth to RIVN is at the least encouraging.

 

[Dark-Fx]

After things like earnings is one of the only times he's able to buy or sell the stock. It's down right now, so it makes sense to buy some of it.

 

[nfrank]

I am a bit surprised he has $1M in cash. His salary must have been fairly substantial for awhile. I figure these startup CEOs have nearly their entire net worth in stocks.

 

[kurtlikevonnegut]

I am a bit surprised he has $1M in cash. His salary must have been fairly substantial for awhile. I figure these startup CEOs have nearly their entire net worth in stocks.

His salary was included in the IPO filing if I remember correctly and it was in the $1.5m range I think. I doubt he has more than $5m in liquid assets and would actually be pretty surprised if he did.

 

[Craigins]

however since the 2021 production target was missed, they did not receive the bonus.

 

[LaunchGreen]

Guaranteed that a portion of prior funding was secondary. That and dilution are why he owned so little at IPO time.

He likely received 9 figures in cash during pre IPO funding - that’s how it works. I personally know many founders that IPOd and not a single one didn’t take substantial money off the table prior.

 

[guernsej]

Or say, tries to catch the knife.

I don't think that saying applies to the founder and CEO of a company who's already inextricably linked to their financial well being.

 

[fromSf]

Its very common on every big round founder+key executives cashing out a little bit and also its very common for CEO's to buy at dip to show they are committed. Personally never take CEO's/executive's buy in-dip seriously and look at it as marketing gimmicks.

 

[moosehead]

I don't think that saying applies to the founder and CEO of a company who's already inextricably linked to their financial well being.

Understand your sentiment, but as others note it is a token vote of confidence in a small attempt to stop the bleeding.

It is also after more than $100B+ in lost enterprise value.

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