Rivian launches new startup, Also Inc., for small electric vehicles

From Yahoo Finance: 2025-03-26 16:00:00

Rivian Automotive Inc., known for its electric trucks, is branching out into small vehicles, spinning off its micromobility business into a new startup called Also Inc. The move aligns with the company’s goal of transitioning to electrified transportation and expanding its offerings beyond large vehicles. Rivian’s CEO, RJ Scaringe, sees a need for a variety of vehicle types for a successful transition to electric transportation.

As Rivian faces challenges like supply chain disruptions and economic uncertainty, the company is venturing into micromobility to diversify its product lineup. With plans to release smaller electric vehicles, Rivian aims to capture a broader market segment while addressing the growing demand for sustainable transportation options. Venture capital fund Eclipse Ventures is investing $105 million in Rivian’s micromobility startup, Also Inc.

Rivian’s foray into micromobility comes as the company continues to expand its electric vehicle offerings, with a midsize SUV called the R2 set to launch in the first half of 2026. Despite reporting a net loss of $1.2 billion in 2024, Rivian’s financial performance has been improving, with a gross profit of $170 million in the fourth quarter. The company expects to deliver 46,000 to 51,000 vehicles in 2025, showcasing its commitment to sustainable transportation solutions.

Read more: Rivian spins out startup focused on small, lightweight electric vehicles