Rivian 'copies' rival Tesla with $4.6 billion move

The NFL is considered a copycat league due to the fact that if 1 squad figures retired a mode to halt your discourtesy 1 week, you tin warrant that the adjacent squad you play volition effort the aforesaid maneuver the pursuing week.

Using tactics that person been proven to enactment is simply a logical strategy successful sports, and electrical conveyance shaper Rivian is taking that doctrine and applying it to its ain business.

Last week, implicit the objections of proxy advisory firms, Tesla shareholders awarded CEO Elon Musk a wage bundle that could perchance wage him $1 trillion implicit the beingness of the deal.

According to the wage package, Musk fundamentally has 10 years to summation Tesla’s valuation from astir $1 trillion to $8.5 trillion.

• 20 million Tesla vehicles delivered

• 10 million active FSD subscriptions

• 1 million bots delivered

• 1 million Robotaxis successful commercialized operation

• $400 billion of Adjusted EBITDA implicit 4 abstracted quarters (current $4.2 billion)

Proxy advisor steadfast Institutional Shareholder Services said determination were "unmitigated concerns" astir the award's size and design. Fellow advisory steadfast Glass Lewis said the wage program warrants “significant concern” owed to the imaginable dilution of shareholder power.

Nevertheless, much than 75% of Tesla shareholder votes were formed successful favour of the measure.

On Nov. 7, Rivian "copied" Tesla's attack with its ain CEO.

On Nov. 7, Rivian's SEC filing indicated that it was canceling the performance-based grant antecedently approved for CEO RJ Scaringe successful 2021 successful favour of a caller wage program worthy arsenic overmuch arsenic $4.6 cardinal implicit the adjacent 10 years.

The caller outgo program is "entirely astatine risk," and the 36.5 cardinal shares underlying the banal options lone go exercisable "upon the accomplishment of what the committee determined to beryllium rigorous, challenging, pre-established show goals implicit a multi-year period."

Related: Rivian sends harsh connection to workers with latest decision

Scaringe volition person the accidental to acquisition the shares astatine an workout terms of $15.22 per stock if Rivian achieves banal terms milestones ranging from $40 to $140 per stock implicit a 10-year period, successful summation to gathering operating income and currency travel targets.

The 2021 deal, which had 16 cardinal less shares, was scrapped due to the fact that the institution stated that the stock terms targets, ranging from $110 to $295, weren't feasible.

Rivian shares closed the Nov. 7 league astatine $15.23 per share. The banal is up 15% twelvemonth to date.

Scaringe would beryllium awarded astir 3% of Rivian's shares should helium conscionable each of his targets. He presently owns astir 2% of the firm. Musk would ain 25% of Tesla if helium meets each the presumption of his deal.