Rivian (RIVN) Climbs to Record High as New CEO Package Fuels Growth Prospects

We recently published 10 Stocks on a Hot Streak. Rivian Automotive Inc. (NASDAQ:RIVN) is one of the best-performing stocks on Tuesday.

Rivian Automotive soared to a new 52-week high on Tuesday as investors placed bets on the company’s growth prospects following a new CEO compensation package that would only be awarded upon the achievement of certain milestones.

According to Rivian Automotive Inc. (NASDAQ:RIVN), the compensation committee of the Board of Directors replaced CEO RJ Scaringe’s 2021 compensation package with a new 2025 version which will only be awarded upon the achievement of a significant stock price and financial performance improvements under his leadership.

“Vesting of the options tied to stock price under the 2025 CEO Award would reflect nearly $153 billion in incremental stockholder value compared to the company’s current market capitalization, based on the exercise price and the stock price hurdles applicable to the 2025 CEO Award. The financial performance goals are tied to the company achieving various levels of positive adjusted operating income and positive cash flow from operations,” Rivian Automotive Inc. (NASDAQ:RIVN) said.

Rivian Automotive Inc. (NASDAQ:RIVN) added that the new award was designed to retain and motivate Scaringe to execute on the critical next phase as it progresses towards its technology roadmap and launch of the R2, which the committee believes supports the best interests of the company and its stockholders.

While we acknowledge the risk and potential of RIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIVN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.