Rivian's CEO RJ Scaringe just picked up 41,000 shares of the company's stock. Basically, the CEO bought the dip, and the dip has been pretty drastic of late.
Rivian's stock has ranked since the company's IPO, which doesn't come as a huge surprise. It's not uncommon for startups to struggle for years – especially in the automotive industry, However, the global situation right now is a disaster across the board, which is impacting the market negatively, and it seems most stocks are suffering in a big way.
We just recently announced that Ford sold a large chunk of Rivian stock after it dropped significantly. Just days later, Ford unloaded even more. Ford's two Rivian stock sales accounted for about 15 million shares with a current value of about $400 million. These actions caused the electric automaker's stock to suffer even more, and Scaringe took notice and took action.
According to a report by Teslarati, the Rivian CEO added company stock worth $1.05 million to his portfolio. He grabbed the Common A stocks when the price was at an average of less than $26 per share. Based on details provided by Street Insider, Scaringe now personally owns 169,175 shares of Rivian stock. He also owns 4,337,997 shares as part of a trust, and another 4,596 by LLC.
If you follow the space, you're likely well aware that Tesla CEO Elon Musk is heavily invested in Tesla's stock. When Musk sells, the stock drops. The outspoken CEO has often said over the years that he won't sell his Tesla shares and that he was one of the first people in and will be the last one out.
Nonetheless, Musk has been selling more of late. It started when he took advantage of options and sold shares to pay taxes. Now, amid his potential Twitter acquisition, Musk is selling more, and he may have to work some magic or sell even more if and when the Twitter deal closes.
When CEOs hold plenty of their company's stock, it can work to instill confidence in investors. If RJ Scaringe is confident enough in Rivian's future to begin buying more shares in large numbers, it may make Rivian supporters comfortable buying shares as well, not to mention raising the share price. At the time of writing, Rivian's stock is currently up over 10 percent in pre-market trading.
While Rivian and CEO Scaringe are confident the automaker will have a successful future, it's going to take time. Investors shouldn't expect earth-shattering results or a massive stock spike in the near future, especially considering supply chain shortages, the Russian invasion of Ukraine, massive inflation, and many other issues plaguing the economy.