On March 26, 2025, Rivian, an American electric vehicle manufacturer known for its innovative approach to sustainable transportation, announced a major strategic move to spin off its micromobility business into a new independent entity called Also. This decision marks a critical moment for Rivian as it seeks to diversify its portfolio and enter the booming light electric vehicle market. The newly formed company, Also, has successfully obtained $105 million in Series B financing from venture capital firm Eclipse, which will enable it to focus on developing a series of small, light electric models to meet the different needs of customers at different price points and geographic areas.
Rivian CEO RJ Scaringe emphasized that Also will operate independently, while Rivian will still hold a minority stake in the new joint venture. Scaringe will also serve as Chairman of Also’s Board of Directors, ensuring continued connection between the two companies. The strategic separation is expected to enable Also to focus on its core mission of creating innovative micro-mobility solutions, with plans to launch its first flagship product in the US and European markets by 2026. After the initial launch, Also plans to expand its product range to custom electric vehicles designed for the Asian and South American markets, reflecting Rivian’s commitment to global expansion in the micro-mobility sector.
INVESTOR SENTIMENT AND MARKET DYNAMICS
Investor sentiment toward Rivian changed significantly following the announcement of the spinoff. Discussion about the company on the Stocktwits platform surged, with retail investors shifting from a neutral stance to a more bullish outlook. Many investors believe that Rivian’s decision to spin off its micromobility business could have a positive impact on profitability, suggesting that the spinoff could allow Rivian and Also to focus more effectively on their respective markets. However, some investors expressed concerns about Rivian’s ongoing challenges, particularly its high cash burn, which has been a long-standing issue for the company.
Although Rivian’s stock price has experienced a decline of more than 7% in 2023, it is worth noting that the company’s cumulative gain over the past 12 months is still more than 15%. This resilience in the stock performance can be attributed to the growing demand for sustainable transportation solutions and the increasing interest in electric vehicles. As the micro-mobility market continues to develop, Rivian’s strategic decisions, including the spin-off of Also, may play a key role in shaping the company’s future trajectory and its ability to capitalize on emerging opportunities.
Micromobility challenges
While the micromobility industry has huge growth potential, it is not without its challenges. The industry has faced a series of financial difficulties and bankruptcies in recent years, and several high-profile companies such as Van Moof, Bird, and Lime are struggling to translate venture capital enthusiasm into sustainable urban transportation solutions. High operating costs, regulatory barriers, and the need for innovative business models have created significant obstacles for many startups in the field.
As it prepares to enter the market, Also will need to address these challenges while leveraging Rivian’s technological strengths to create a compact and cost-effective vehicle. The demand for sustainable transportation is rising due to concerns about traffic congestion, rising costs, and increased emissions. However, Also’s success will depend on whether it can differentiate itself from its competitors and build a viable business model that meets the unique needs of urban commuters.
In summary, Rivian’s spin-off of its micromobility business into Also represents a strategic move to capitalize on the growing demand for light electric vehicles. With significant funding and a clear product development vision, Also is poised to make a breakthrough in the micromobility space. However, the challenges facing the industry require innovative solutions and a commitment to sustainability. As investor sentiment changes and the market evolves, the future of both Rivian and Also will depend on their ability to adapt and thrive in an increasingly competitive environment.
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Post time: Mar-29-2025