Rivian Spins out Micromobility Business into New Startup—Also, Inc.

Rhea-AI Summary

Rivian (NASDAQ: RIVN) has announced the spin-off of its micromobility business into a new company called Also, Inc. The new venture, focused on small, lightweight electric vehicles, has secured a $105 million investment from Eclipse Ventures. Rivian will maintain a substantial minority ownership stake and may collaborate through its retail footprint.

The micromobility program, initially developed in stealth mode, aims to leverage Rivian's expertise in software, electronics, and electric propulsion to create cost-effective and enhanced products. Rivian's CEO RJ Scaringe will serve as Also's Board Chairman.

Meanwhile, Rivian continues to progress toward its R2 launch in Normal, Illinois, with customer deliveries of the new midsize SUV expected to begin in the first half of 2026.

Positive

• Secured $105 million investment from Eclipse Ventures for Also, Inc.
• Maintains substantial minority stake in the new micromobility venture
• Potential revenue stream through retail footprint collaboration with Also, Inc.
• Strategic expansion into growing micromobility market while maintaining focus on core business

Negative

• Divesting control of micromobility technology and potential future revenue stream
• R2 launch timeline extends to 2026, indicating lengthy development cycle

Insights

Corporate Strategy Analyst

Rivian's decision to spin out its micromobility division into Also, Inc. while maintaining a substantial minority stake represents a strategic refocusing on its core electric vehicle business. This move allows Rivian to concentrate resources on the upcoming R2 midsize SUV launch while still participating in the growth potential of the micromobility sector.

The $105 million investment from Eclipse Ventures validates the potential of the micromobility technology Rivian developed in stealth mode. This capital infusion values the spin-off at a significant level, suggesting the intellectual property and business potential have material value. RJ Scaringe maintaining the Chairman position on Also's board ensures Rivian's continued influence over the direction of this asset.

From a strategic perspective, this corporate restructuring accomplishes several objectives: it streamlines Rivian's operational focus during a critical product launch phase, reduces cash burn on non-core activities, creates a more specialized environment for the micromobility business to thrive, and maintains potential upside through minority ownership. The potential for future collaboration, including using Rivian's retail footprint for Also products, creates additional synergy opportunities.

This transaction represents thoughtful portfolio management as Rivian concentrates on scaling its primary business while ensuring shareholders maintain exposure to micromobility innovation. The emphasis on the R2 timeline (first half of 2026) reaffirms the company's commitment to its core product roadmap despite this organizational change.

As Rivian drives toward launch of R2 and R3, company to be minority shareholder in California-based venture

IRVINE, Calif.--(BUSINESS WIRE)-- Rivian (NASDAQ: RIVN) today announced it has spun out its micromobility business into a new company: Also, Inc. Also will focus on small, lightweight vehicles that are designed to meet the global mobility transportation challenges of today and tomorrow.

Recognizing the massive need for small electric form factors in enabling the sustainable transition of our global transportation system, Rivian started a stealth program focused on micromobility several years ago. The goal of this initial effort was to examine how Rivian’s strength in software, electronics and electric propulsion could be applied to create an advantaged cost structure and greatly enhanced product relative to currently available offerings. As these efforts advanced, it became clear that Rivian’s approach had the potential to unlock a large opportunity that deserved to be its own company, optimized around different products, brand positioning and markets.

Rivian retains a substantial minority ownership stake in Also and expects opportunities for future collaboration, which may include selectively using some of Rivian’s retail footprint. In connection with the spin-off, Also secured a $105 million investment from the venture capital fund, Eclipse Ventures, which will support Also’s next phase of growth. Rivian Founder and CEO RJ Scaringe will serve on Also’s Board of Directors as its Chairman.

“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” said Rivian Founder and CEO RJ Scaringe. “I am extremely excited about the innovations developed by the Also team that will underpin a range of highly compelling micromobility products that will help define new categories.”

As part of its intense focus on sustainably growing its core business, Rivian continues to make significant progress toward its R2 launch in Normal, Illinois and expects to begin customer deliveries of the all-new midsize SUV in the first half of 2026.

Also will have more to share on its activities and products soon.

Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles and accessories. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers. The company provides a full suite of services that address the entire lifecycle of the vehicle and stay true to its mission to keep the world adventurous forever. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal — preserving the natural world for generations to come.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the success of Also, Inc., potential future collaborations with Also, Inc., potential future Also, Inc. products and offerings, and the timing of the launch of R2 in Normal, Illinois. In some cases you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements use these words or expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed in Part I, Item 1A, “Risk Factors” in Rivian’s Annual Report on Form 10-K for the year ended December 31, 2024, and its other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250326599387/en/

Media contact:

Peebles Squire, media@rivian.com

Investors:

ir@rivian.com

Source: Rivian

FAQ

What is the value of Eclipse Ventures' investment in Rivian's Also, Inc. spin-off?

Eclipse Ventures invested $105 million in Also, Inc. to support its next phase of growth.

When will Rivian (RIVN) begin customer deliveries of the R2 midsize SUV?

Rivian plans to begin customer deliveries of the R2 midsize SUV in the first half of 2026.

What is Rivian's (RIVN) ownership stake in Also, Inc.?

Rivian retains a substantial minority ownership stake in Also, Inc.

What role will RJ Scaringe have in Also, Inc.'s management structure?

RJ Scaringe, Rivian's Founder and CEO, will serve as Chairman of Also, Inc.'s Board of Directors.

How will Rivian (RIVN) collaborate with Also, Inc. after the spin-off?

Rivian may collaborate with Also, Inc. by selectively offering access to its retail footprint.