EV Leadership: How Much Are Rivian & Tesla CEOs Being Paid?

Debate over Elon Musk’s compensation has persisted since Tesla proposed a staggering US$1tn pay package for the CEO in September. After Norway’s sovereign wealth fund opposed the plan and the Pope voiced his concerns, the long-running will-they-won’t-they was finally resolved. At a Tesla shareholder meeting on 6 November, the deal gained approval, winning 75% of votes.

Celebrating the outcome, Elon told attendees: “Other shareholder meetings are snoozefests but ours are bangers. Look at this. This is sick.”

Following Tesla’s decision, fellow EV maker Rivian made its own announcement on 7 November, revealing a revised compensation deal for CEO RJ Scaringe valued at up to US$4.6bn over the next decade.

Filed with the SEC on the same day, the Board confirmed it had cancelled RJ’s 2021 package to “retain and incentivise” the CEO as he steers the company through its “critical next phase.” The new package totals US$4.6bn if Rivian’s stock reaches US$140 per share by 2035.

For RJ to unlock the full payout, Rivian must achieve an 800% stock increase from US$15, plus meet undisclosed operating income and cash flow goals, according to TechCrunch. After the price hits US$40, he will earn two million shares for every additional US$10 per share increase. TechCrunch reports that the stock must maintain US$140 for 120 consecutive days to trigger full payment. RJ could also gain an extra 14.5 million shares if he achieves annual targets for adjusted operating income and cash flow by 31 December 2032.

Marina Hoffman, a Rivian spokesperson, said in a statement to Business Insider: “Rivian shareholders will see an approximate US$32bn of return before RJ sees US$1 from this award.

“If the entire award is earned by RJ, Rivian shareholders will see around US$153bn of value creation.”

Rivian faces a pivotal year as it prepares to launch the R2, a US$45,000 electric SUV aimed at making the brand’s premium range accessible to more buyers.

RJ previously told Business Insider: “For us to become a company of the scale we aspire to be, which is producing many millions of cars a year, we’re not going to get there with a US$90,000 single flagship product.”

Inside Elon Musk’s pay package

For Elon Musk to secure the US$1tn package by the end of its 10-year term, he must meet several performance milestones aligned with Tesla’s long-term goal of achieving “Sustainable Abundance” for all. Targets include:

• Delivering 20 million Tesla vehicles and one million robots

• Securing 10 million Full Self-Driving subscriptions

• Deploying one million commercial Robotaxi vehicles

• Reaching up to US$400bn in core profit

• Raising Tesla’s market value to US$8.5tn, up from the current US$1.4tn

Challenges facing the CEOs

Tesla’s Q3 2025 revenue reached US$28.1bn, according to Reuters, surpassing London Stock Exchange Group estimates by US$1.7bn. However, its October financial report revealed a 4% drop in share value. Rivian’s third-quarter revenue jumped 78% to US$1.56bn, though it maintained lower 2025 guidance - expecting an adjusted US$2.2bn loss while producing 42,500 vehicles, CNBC reported.

Both automakers face mounting EV sector challenges, including the loss of an EV tax credit, increased market competition from hybrids, and new tariffs on imported parts. In a letter to shareholders on 4 November, RJ affirmed that despite policy and economic headwinds, “we remain focused on long-term growth and value creation.”