Rivian stock falls sharply as losses continue and CEO pay faces criticism

Rivian faces deep Q3 loss, stock slide

Rivian, the electric vehicle manufacturer, continues to face significant financial challenges as it scales up its business. The company’s financial report for the third quarter of 2025, released on Nov. 4, 2025, revealed a net loss of $1.17 billion.

This loss represented a 6.64% improvement compared to the same quarter of the previous year. Rivian’s total revenue for the third quarter reached $1.56 billion, which was a 78% increase year-over-year. Despite the rise in revenue from vehicle deliveries, the significant net loss indicates that the company is still spending more money than it is generating.

Stock price is volatile, insiders are selling

Rivian’s stock, traded under the symbol RIVN on the Nasdaq, has been volatile. On November 21, 2025, the stock closed at $14.86. The stock’s 52-week high, at $18.13, was recorded during the same period, indicating extreme volatility following the earnings and compensation news.

In a move that can worry investors, the Soros Fund Management had previously disclosed a sale of its Rivian stock. The company’s CEO, RJ Scaringe, has also previously sold shares. These sales by key figures and large investors raise questions about the company’s future cash flow and potential.

CEO pay package reaches $4.6B

A significant point of controversy for investors is the massive new pay package approved for CEO RJ Scaringe. Announced in a regulatory filing on Nov. 7, 2025, the new compensation plan could be worth as much as $4.6 billion over the next decade.

The company’s board canceled the previous plan from 2021 because its stock price goals, which ranged from $110 to $295 per share, were considered unrealistic. The new plan has reduced stock targets, ranging from $40 to $140 per share, and also requires the CEO to meet specific operating income and cash flow targets.

Scaringe pay plan draws criticism

The new $4.6 billion pay package for the CEO has drawn criticism for linking large rewards to goals that some financial analysts argue are less demanding than those of the previous package. Rivian’s board also approved doubling CEO Scaringe’s annual base salary to $2 million.

If the CEO meets all milestones, he will receive options to purchase up to 36.5 million shares of Class A stock. The package vests only if Rivian achieves a series of stock-price targets between $40 and $140, as well as specified operating and cash-flow milestones, through 2032.

Q3 vehicle production, deliveries up

Despite the company’s financial losses, Rivian’s production and delivery figures for the third quarter, ending September 30, 2025, showed positive growth in vehicle sales. The company reported on Oct. 2, 2025, that it produced 10,720 vehicles at its factory in Normal, Illinois.

During the same period, Rivian delivered 13,201 vehicles to customers. The company’s deliveries reached a record high, exceeding the number produced, indicating that Rivian was successfully selling down its inventory. Following these results, the company narrowed its full-year delivery goal for 2025 to a range of between 41,500 and 43,500 vehicles.

Next-generation R2, R3 models coming

Rivian’s future growth relies heavily on its new, more affordable electric vehicles. The company is preparing to launch the R2 sport utility vehicle, which is expected to have an estimated starting price of around $45,000.

Deliveries for the R2 are scheduled to begin in the first half of 2026. Following the R2, Rivian plans to release the smaller R3 crossover and the high-performance R3X. The R3 is expected to have an estimated starting price of around $37,000, and its largest battery option is expected to provide a driving range of over 300 miles.

Supply chain costs $400M in 2025

Rivian continues to face challenges with its supply chain, the network of companies that provide parts for its vehicles. For the full year of 2025, the company estimated that these issues would cost approximately $400 million. This high figure highlights the challenges of obtaining parts during the production ramp-up.

Rivian states that simplified manufacturing and supplier changes are aimed at achieving major cost reductions; management has cited approximately 35% material-cost savings on its van line and similar savings across other lines. This considerable cost reduction is essential for the company’s future profitability.

Normal factory expanding capacity

To meet future demand, Rivian is investing heavily in expanding its only manufacturing plant in Normal, Illinois. The company aims to increase the factory’s total annual production capacity to 215,000 units upon completion of the expansion.

This expansion is essential for manufacturing the new R2 and R3 models, with R2 deliveries scheduled to begin in 2026. Illinois approved incentives for a 1.2 million-square-foot supplier park adjacent to Rivian’s Normal plant, targeted for completion in 2026 to support R2 parts flow. This increased capacity is a key part of Rivian’s strategy to become a mass-market EV maker.

Amazon EDV fleet expansion continues

Rivian has a significant commercial partnership with Amazon, which has ordered 100,000 Electric Delivery Vans (EDVs). The vans are being rolled out across the United States as part of Amazon’s goal to have all 100,000 EDVs on the road by 2030.

The vehicles are a key part of Amazon’s Climate Pledge, a company commitment to reach net-zero carbon by 2040. This commercial partnership provides Rivian with a significant and reliable source of revenue and production volume, which is crucial for its overall financial stability and growth in the competitive EV market.

Driver+ autonomy uses 11 cameras

Rivian has developed its own advanced driver-assistance system, called Driver+, which comes standard on all its vehicles. The system utilizes sophisticated hardware, including 11 high-resolution cameras and five radars, to provide 360-degree visibility around the car.

Additionally, the system operates 12 ultrasonic sensors for close-range coverage and parking assistance. This in-house technology development gives Rivian greater control over its software, providing features such as Highway Assist, which automatically handles steering and speed on select roads.

Battery Max pack offers 420-mile range

Rivian’s vehicles are known for their custom-built battery packs and extended driving range. The R1T pickup truck, when equipped with the largest battery option, the Max Pack, has an Environmental Protection Agency-estimated range of up to 420 miles.

The R1S sport utility vehicle with the Max pack has an EPA-estimated range of up to 410 miles. Rivian also offers a Large pack and a Standard pack. The Max pack is also designed for fast charging, capable of receiving a maximum charge rate of 220 kW at a high-speed DC rapid charger.

Want to see how Rivian is boosting output while trimming its service team? Read more in Rivian expands production while cutting service staff.

International expansion starts in 2026

To achieve long-term profitability, Rivian will need to expand beyond the North American market. The company has stated its intention to introduce the new, smaller R2 model to Europe in 2026. The R2 will be the first model sold by Rivian outside of the United States and Canada.

This global expansion will initially focus on left-hand drive markets. Rivian’s ability to successfully expand into international markets is a key step in growing its customer base and increasing sales volume beyond North America.

Curious whether Rivian’s electric truck can beat Ford’s best seller? Find out in can Rivian’s R1T outshine Ford’s F 150 Lightning.

Are these setbacks a warning sign for Rivian’s future? Share your thoughts below.

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This slideshow was made with AI assistance and human editing.