Rivian spins off micromobility unit with $105M venture funding

IRVINE, Calif. - Rivian (NASDAQ: RIVN), the American electric vehicle manufacturer currently valued at approximately $14 billion, has announced the creation of a new company, Also, Inc., which will focus on developing micromobility solutions. According to InvestingPro data, Rivian’s financial health score stands at "FAIR," with the company holding more cash than debt on its balance sheet. Rivian will maintain a substantial minority ownership in the new venture, signaling a strategic shift to address the growing demand for small, electric transportation options.

Also, Inc. has emerged from a stealth program initiated by Rivian to leverage its expertise in software, electronics, and electric propulsion. This initiative aimed to explore cost-effective and enhanced product offerings in the micromobility sector, which has now culminated in the formation of a separate entity. While Rivian’s current ratio of 4.7 indicates strong short-term liquidity, InvestingPro analysis shows the company is quickly burning through cash. The spin-off has attracted a significant investment of $105 million from Eclipse Ventures to propel Also’s growth.

Rivian’s Founder and CEO, RJ Scaringe, expressed enthusiasm about the potential for Also’s innovative micromobility products to define new categories in the transportation landscape. Scaringe will also serve as Chairman of the Board for Also, indicating a close strategic alignment between the two companies.

While Rivian continues to focus on its core automotive business, with plans to launch the R2 midsize SUV from its Normal, Illinois facility in the first half of 2026, the company expects that the micromobility market will play a crucial role in the broader transition to electrified transportation. The company looks forward to potential future collaborations with Also, which may extend to utilizing parts of Rivian’s retail network.

Also is expected to reveal more information about its activities and product lineup in the near future. Rivian remains committed to its mission of advancing zero-emission transportation and energy solutions, with a focus on delivering vehicles that cater to both consumer and commercial markets.

This development is based on a press release statement and comes amid a broader industry trend towards diversifying transportation options to include smaller, more sustainable electric vehicles alongside traditional electric cars and trucks. With revenue growth of 12% in the last twelve months and analysts projecting 7% growth for the upcoming fiscal year, Rivian continues to expand its market presence. For deeper insights into Rivian’s financial health and growth prospects, including 12 additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Rivian Automotive Inc. has been at the center of several notable developments. Piper Sandler recently downgraded Rivian’s stock rating from Overweight to Neutral, adjusting the price target to $13, citing challenges in identifying growth catalysts for 2025. Meanwhile, Benchmark maintained a Buy rating with an $18 price target, adjusting first-quarter vehicle delivery forecasts to 8,000 units due to seasonal effects and demand constraints. Bernstein reiterated an Underperform rating with a $6.10 target, expressing concerns over Rivian’s long-term scale and financial targets.

Rivian’s strategic moves include a joint venture with Volkswagen, aimed at de-risking its balance sheet, and a planned shutdown of its Illinois manufacturing facility to prepare for the R2 platform launch in 2026. The company also appointed Sreela Venkataratnam, a former Tesla executive, as its new Chief Accounting Officer. Despite these strategic efforts, Rivian faces demand challenges, with retail sales down 9% year-over-year in February. Investors remain attentive to Rivian’s ability to navigate these developments and meet its future delivery and financial goals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.