Rivian, known for its large electric trucks, is setting its sights on small and lightweight vehicles.
The Irvine-based automaker said Wednesday it’s spinning out its micromobility business into a new startup called Also Inc.
Micromobility encompasses a variety of vehicles, including electric bikes, scooters and skateboards.
Rivian said in a news release that it started working on micromobility several years ago and concluded that business should be its own company. Rivian didn’t specify what type of products the startup plans to release and when.
“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” RJ Scaringe, Rivian founder and chief executive, said in a statement.
The move comes as Rivian aims to grow its business while facing challenges such as supply chain woes, regulations and consumers wary about spending money amid economic uncertainty.
Scaringe previously hinted that Rivian was working on micromobility. He said at TechCrunch’s Disrupt conference in 2022 that the company planned to move to even smaller vehicles. In 2023, he told staff Rivian was developing an electric bike, Bloomberg reported.
Rivian said it has a “substantial minority ownership stake” in Also, which will be based in Palo Alto.
Scaringe will serve as the chairman of the startup’s board of directors. Venture capital fund Eclipse Ventures is investing $105 million in Also.
The company declined to provide further details about the venture.
Rivian also has been working on a midsize SUV with five seats that starts at $45,000, a lower price compared to its larger vehicles. Known as the R2, the SUV is expected to be delivered to customers in the first half of 2026.
In 2024, Rivian reported annual revenue of nearly $5 billion and a net loss of $1.2 billion, according to its quarterly financial results.
The company’s finances have been improving as losses have narrowed.
The company reported a gross profit of $170 million in the fourth quarter of 2024, compared to a loss of $606 million during the same period in 2023.
Rivian expects to deliver 46,000 to 51,000 vehicles in 2025.
The post Rivian spins out startup focused on small, lightweight electric vehicles appeared first on Los Angeles Times.
