Rivian spins off micromobility unit as it doubles down on core EVs

Rivian $RIVN ( ▲ 4.38% ) is separating out its micromobility business as the company zeros in on solidifying its long-term sustainability with vehicles like the R1S and the highly anticipated R2. 

The details: The micromobility business—now named Also—started as a stealth program several years ago, with a focus on developing “small electric form factors” for enabling the sustainable transition of global transportation.

• Also—which is anchored in Rivian’s strength in software, electronics and electric propulsion—will now focus on developing products like scooters, three-wheelers, and small EVs.

• Rivian will still retain a substantial minority ownership stake in the startup, with Rivian founder and CEO RJ Scaringe serving on Also’s board. 

• As part of the spin-off, Also secured a $105 million investment from the venture capital fund Eclipse Ventures to support its next phase of growth.  

Why it matters: Rivian will keep a minority stake in Also, and CEO RJ Scaringe will serve on its board—allowing the company to stay connected to the micromobility space without stretching its resources—especially as it pushes toward profitability.

Between the lines: The spin-off of Also—which plans to reveal some of its first vehicle designs later this year—enables Rivian to build its core business while focusing on other challenges that could impact the company’s core operations as it pushes toward profitability.

• Rivian has cautioned that “changes to government policies and regulations and a challenging demand environment” could significantly impact its business operations.

• The fate of a massive $6.6 billion federal loan for a nine-million-square-foot Rivian EV plant in Georgia still hangs in limbo amid President Donald Trump’s plans to cut federal expenditures. 

Bottom line: Rivian is signaling to investors that it's prioritizing core growth and operational discipline—while still keeping a toehold in emerging markets like micromobility through a lower-risk, VC-backed model.

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