Rivian Shares Are Surging. Here’s Why.

Shares of Rivian rose 9.6% to $17.99 on Tuesday, marking an 18.1% increase since shares closed last week at $15.23, and a 45% rally since the stock hit a 52-week low of $12.39 on Nov. 4.

Rivian’s shares surged more than 23% on Nov. 5 after the automaker reported third-quarter revenues of $1.56 billion and earnings loss per share of 65 cents, beating analysts’ estimates of $1.49 billion and a loss of 72 cents, according to FactSet.

The company cited a $167 million boost to gross profit for software and services from Rivian’s joint venture with Volkswagen, which announced last year it would invest more than $5.8 billion in the electric vehicle startup to provide the German automaker with next-gen software for EVs.

Rivian on Friday disclosed a pay package for Scaringe that doubles his base salary to $2 million, along with a grant piece that grants Scaringe—who holds nearly 4 million Rivian shares—the option to purchase up to 36.5 million additional shares.

About 22 million of those shares will be locked behind 11 stock price milestones Rivian must achieve, including rising to $140, while Rivian said shareholders could gain $153 billion in value.

Barclays analyst Dan Levy wrote Monday the pay package was a “positive development” for Rivian, whose earlier deal for Scaringer required the company to achieve a stock price as high as $295, while Vitaly Golomb, a managing partner at Mavka Capital, told Reuters the compensation plan was “much more reasonable” than a $1 trillion deal approved by Tesla for CEO Elon Musk.