Written by Cláudio Afonso | LinkedIn | X
Rivian Automotive revealed on Wednesday it is developing fully electric lightweight vehicles noting that the unit will now be spun off into a separate company called Also Inc., as the electric vehicle maker narrows its focus ahead of its R2 launch in the first half of 2026.
Rivian’s new arm will focus on developing “small, lightweight vehicles that are designed to meet the global mobility transportation challenges of today and tomorrow,” Rivian said Wednesday in a statement. ‘Also’ has secured $105 million in funding from Eclipse Ventures.
“We’ve been taking the Rivian technology stack and adapting it to much smaller form factors and then coming up with some incredibly exciting embodiments of that technology in these very small form factors,” Rivian CEO RJ Scaringe told Reuters.
In the company’s statement, Scaringe said he is “extremely excited about the innovations developed by the Also team that will underpin a range of highly compelling micromobility products.”
Scaringe will serve as chairman of Also’s board. Rivian retains a substantial minority stake in the new company and said future collaboration is likely, potentially involving its retail footprint.
The micromobility effort began as a stealth project several years ago. “It became clear that Rivian’s approach had the potential to unlock a large opportunity that deserved to be its own company,” the Irvine-based carmaker said.
“The goal of this initial effort was to examine how Rivian’s strength in software, electronics and electric propulsion could be applied to create an advantaged cost structure and greatly enhanced product relative to currently available offerings,” the company stated.
“As these efforts advanced, it became clear that Rivian’s approach had the potential to unlock a large opportunity that deserved to be its own company, optimized around different products, brand positioning and markets,” it added.
Commenting on the R2 preparation, Rivian said it’s making progress toward the rollout of its R2 midsize SUV in Normal, Illinois, with customer deliveries expected in the first half of 2026.
Piper Sandler recently downgraded Rivian shares to Neutral, citing a lack of near-term catalysts. Analyst Alexander Potter said the firm still considers the stock its “favorite Neutral,” with investor attention now firmly on the R2 model.
As of the time of writing, Rivian shares are trading 0.8% higher at $12.46.
