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Rivian Awards CEO RJ Scaringe a $4.6 Billion Pay Package Modeled on Musk’s Tesla Deal

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Electric vehicle maker Rivian has unveiled a massive $4.6 billion compensation plan for CEO RJ Scaringe, mirroring the structure of Elon Musk’s Tesla pay package. The deal, announced Friday, is one of the largest executive awards in history, tying Scaringe’s payout to ambitious profit and share price milestones over the next decade.

The move signals Rivian’s determination to retain its founder and keep him focused on growth as the company prepares to launch its smaller, more affordable R2 SUV next year — a key model aimed at competing with Tesla’s Model Y.

Rivian said the new plan replaces an earlier one issued in 2021 that was unlikely to be met. The updated package includes options to purchase 36.5 million shares at $15.22 each, vesting if Rivian’s stock hits price targets ranging from $40 to $140 a share over the next ten years. The company’s previous plan required share prices between $110 and $295, thresholds now deemed unrealistic amid market pressures and the removal of EV tax credits that have slowed sales.

The award also introduces operating income and cash flow goals over seven years. Rivian shares closed at $15.22 on Thursday — exactly the strike price for Scaringe’s new options.

“This plan keeps RJ incentivized to scale Rivian efficiently while aligning his success with shareholder returns,” said a company statement.

The EV startup recently laid off 600 employees, or 4.5% of its workforce, as part of cost-cutting efforts. Still, the company insists it is on track to improve profitability and expand production.

Separately, Scaringe was granted 1 million common units in Mind Robotics, a new Rivian spinoff focused on industrial AI technology. He will serve as chairman of its board and could earn up to a 10% stake once the venture turns a profit.

Trump’s EV rollback rattles America’s Battery Belt economy

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The U.S. Battery Belt — a stretch of billion-dollar electric vehicle and battery factories from Georgia to Indiana — is feeling the shockwaves of President Donald Trump’s EV policy shift, as automakers delay projects and rural communities brace for economic fallout.

In Stanton, Tennessee, population 450, Ford’s vast EV truck and battery complex once promised 6,000 jobs and a revival of the local economy. But after repeated delays, initial production has been pushed back to 2027, two years later than planned. Former mayor Allan Sterbinsky said locals now worry Ford might abandon or repurpose the 3,600-acre site entirely.

The slowdown reflects waning U.S. demand for electric cars after Trump allowed a $7,500 EV tax credit to expire on Sept. 30, a move Ford’s CEO Jim Farley warned could halve electric car sales. Analysts say this and other anti-EV measures have jeopardized projects across the South and Midwest.

A Reuters review of U.S. battery-investment plans found that even if all planned plants go forward, the country could face a glut of capacity. By 2030, factories could produce batteries for 13–15 million EVs, while demand may cover only a quarter of that, or about 3 million units, according to Benchmark Mineral Intelligence.

Some excess output could be redirected to hybrids or energy storage, but experts warn many facilities may go underutilized. “Much of what was originally going to benefit from these credits now no longer can,” said Jennifer Stafeil of KPMG.

Still, some companies press ahead. Hyundai’s $12.6 billion EV and battery complex in Georgia remains on track despite a federal investigation delay, and will employ 8,500 workers by 2031, according to local officials.

For towns like Stanton, however, the optimism of the EV boom has faded into uncertainty. “That’s on everybody’s mind,” said Sterbinsky. “We built our future around this.”

Chinese battery stocks tumble after new export controls tighten grip on EV supply chain

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Chinese battery shares fell sharply on Friday after Beijing announced new export controls on lithium battery materials and technology, deepening its hold on a supply chain vital to global electric vehicle (EV) and energy storage industries.

The Ministry of Commerce said exporters of certain high-end lithium-ion batteries, cathode and graphite anode materials, and related technical know-how will now require permits starting November 8. The move follows China’s expanded restrictions on rare earths, escalating tensions with the United States ahead of a potential meeting between Presidents Donald Trump and Xi Jinping.

Shares of major producers sank: CATL dropped 6.82%, Tianqi Lithium fell 7.17%, EVE Energy plunged nearly 11%, and BYD lost 2.54% by market close. China’s New Energy Vehicles Index slid 6.02%.

“The new controls drastically expand how much of the lithium battery supply chain China is staking a claim to,” said Cory Combs of Trivium China, warning that Beijing could slow or limit export licenses to maintain leverage.

Analysts at Zaoshang Securities argued the impact should be limited, saying the measures stop short of a ban and that past controls, such as those on natural graphite, caused no major export decline. Still, investors remain uneasy as the curbs come alongside tighter EV tax exemption rules, which could hit domestic demand.

Chinese companies such as CATL and BYD, which supply automakers worldwide and operate joint ventures like the Ford-CATL plant in the U.S., could face ripple effects across global supply chains as Washington and Beijing compete for dominance in critical materials.