After a highly volatile 2024, the electric vehicle (EV) market has not stabilized so far in 2025. The current U.S. presidential administration’s lack of focus on clean energy has led to a questionable outlook for the industry.
Once the sector’s most promising startup, Rivian (RIVN) is caught in the throes of a complicated economy and faces consistent challenges as it struggles to compete with Tesla (TSLA) . Its electric trucks and SUVs remain popular among the company’s fanbase, but that hasn’t been enough to drive healthy share growth.
As TheStreet’s James Ochoa reports, Rivian CEO RJ Scaringe recently tried to copy Musk’s tactics as a means of stoking enthusiasm for its new EV models among fans, but it may be too little too late. However, the company has made it clear that it isn’t only focused on cars.
Rivian is exploring a new area of transportation, one that most people likely didn’t see coming.
Rivian is venturing down a new path as it spins off a startup that doesn’t build large-scale EVs.
Rivian’s new avenue is lined with bankruptcies and delistings
In an industry dominated by Tesla, consistent adoption is a key to success for any startup. Remaining competitive with a company whose resources and reach surpass everyone else is daunting.
Rivian appears to be rising to the occasion, though, or at least making a notable effort. The EV startup has announced that it will spin off a startup called Also, which operates in the micro-mobility space and will produce a variety of small, lightweight electric vehicles.
Related: Analysts agree to disagree on Rivian’s “empty” 2025
The most shocking aspect of this news is likely that Rivian is focused on a market like micromobility, an industry truly synonymous with failure. Only a few years ago, American cities were filled with electric scooters from companies like Bird and Lime that could be accessed with just a few mobile phone clicks.
However, this fad would prove extremely short-lived, as this new means of transportation proved unsustainable as a business model. Years later, most of the industry has crumbled, including Bird, once the country’s largest e-scooter provider with a valuation of $2.5 billion, which filed for bankruptcy in December 2023.
The industry’s decline is well represented by the fact that the company called micromobility.com, formerly Helbiz, delisted from the Nasdaq in 2023 after failing to trade above the $1 per share threshold.
However, Rivian appears confident in Also’s prospects, even in a market with a highly questionable history. Eclipse Ventures seems to share this view: it just invested $105 million in the startup.
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Also began as a stealth program within the Rivian ecosystem several years ago to help determine if the company’s technology could be condensed into smaller vehicles. Rivian has confirmed that the answer is yes, and while Also will act as a standalone company, the two will remain connected.
“Rivian holds a minority stake, Scaringe will serve on its board, and Also will leverage the automaker’s tech, retail presence, and economies of scale. Chris Yu, Rivian’s VP of future programs, will be its president,” reports TechCrunch.
Rivian isn’t revealing too much about its startup
The success or failure of Also will do much to determine the future of the micromobility field. Few details have been provided on the exact vehicles the startup will be producing, but according to reports, it is staffed by former Tesla, Uber UBER, and Google GOOGL employees.
Related: Elon Musk leaves out key question at Tesla all-hands meeting
What we do know is that Also’s flagship product is scheduled to enter production next year, ultimately making it available to customers in the U.S. and Europe. However, the company plans to introduce both commercial and consumer vehicles in markets such as Asia and Africa.
“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” Scaringe states. “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.”
In addition, the Rivian CEO has revealed that Also will display its first vehicle designs at an event in 2025. Given the ambiguity around the company’s plans and products, many people will likely be tuning in when the designs are unveiled.
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