Rivian Spins Off Micromobility Business Into New Company ‘Also’: Retail’s Elated

California-based EV startup Rivian (RIVN) said on Wednesday that it has spun out its micromobility business into a new company named Also, Inc., which will focus on small, lightweight vehicles.

Rivian will retain a substantial minority ownership stake in Also, it said, adding that CEO RJ Scaringe will also serve as chairman of the startup’s Board of Directors.

Meanwhile, Scaringe observed that a “range of vehicle types and form factors” will be needed for a complete transition to electric transport.

“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,” he said.

Rivian said the startup secured a $105 million investment from the venture capital firm Eclipse as part of the spin-off.

Also will announce more about its products soon, the company said, without providing more details.

Rivian started the micromobility business as a stealth program several years ago to identify if it could create vehicles with a small form factor and an advantaged cost structure with its abilities, it said.

However, the company has decided to focus on its core business and launch its R2 midsize SUV in the first half of 2026 from its plant in Normal, Illinois.

The R2 is expected to be priced around $45,000, which is in the range of Tesla’s best-selling Model Y SUV.

Rivian said earlier this year that it is planning to shut down its production line at its factory in Illinois for about a month in the second half of the year to prepare for the start of production of the R2.

Rivian is also looking to start production of its R3 crossover afterward.

On Stocktwits, retail sentiment about Rivian rose from ‘neutral’ to ‘bullish’ territory (56/100), while message volume jumped from ‘low’ to ‘normal’ over the last 24 hours.

RIVN's Sentiment Meter and Message Volume as of 11:20 a.m. ET on March 26, 2025 | Source: Stocktwits

A Stocktwits user expressed optimism about the spinoff, believing it might be a good thing from a profitability standpoint.

Another user, however, highlighted the company’s high cash burn.

Rivian shares have lost over 7% this year but are up by over 15% over the past 12 months.

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