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Home»News»Rivian spinoff focuses on small EVs, “ways to move beyond cars”
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Rivian spinoff focuses on small EVs, “ways to move beyond cars”

adminBy adminMarch 27, 2025No Comments3 Mins Read
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  • Spinoff starts with $105 million VC investment, Rivian maintains “substantial minority stake”
  • Products to be affordable, vastly more efficient than today’s cars or SUVs
  • In-house-built for core components, may share sales space with Rivian
  • Flagship product coming in early 2026

Do we really need a new generation of EVs that are bigger and heavier than equivalent gasoline trucks and SUVs, and the so-called segment creep that continues to make each successive U.S.-market vehicle larger than predecessors? 

These are tough, societal questions without easy answers, and it involves a tangle of regulations, consumer habits, and the limits of affordable technology. But a Palo Alto, California–based micromobility startup being spun off by Rivian, called Also, looks like it aims to tackle them—and, from the sound of it, give American consumers a way to just say no to those super-size products. 

In a press release announcing the venture, which Rivian had previously kept under wraps, Rivian clarified that it maintains a “substantial minority stake” in Also and “expects opportunities for future collaboration, which may include selectively using some of Rivian’s retail footprint.”

With the spinoff of the company Also secures a $105 million investment from the VC fund Eclipse Ventures, and Rivian CEO RJ Scaringe will serve as its chairman and on its board of directors. 

Also, in a page about the company, says that it will launch its flagship product in early 2026 and will initially focus on the U.S. and Europe prior to global expansion. 

Rivian R3

That product will be part of an entire range of “exciting, small EVs,” according to Also, that will be built on a vertically integrated technology platform. With everything built for the platform in-house, including motors, batteries, electronics, and software, Also claims “a user experience that is unlike anything seen in these segments before.”

See also  Car and Driver’s 10Best Cars through the Decades

“Also is building an exciting range of electric vehicles that are efficient, sustainable, and delightful to use,” the company sums. 

In job postings, Also quantifies its product targets a little bit. “Our mission is to inspire everyone to ride also—replacing many local car, truck and SUV miles with ones on vehicles that are more affordable, more enjoyable and 10-50x more efficient.”

Road transportation is the leading contributor to global CO2 emissions, Also says, while 80% of car trips are 15 miles or less and half are under 6 miles. 

Rivian continues to also set its sights toward significantly smaller vehicles than its own flagship R1T electric pickup and R1S electric SUV. Its upcoming $45,000 R2 electric SUV is on the way in 2026, while it’s also working on smaller Rivian R3 and R3X rugged hatchbacks that are set to follow. All of this comes in addition to the $5.8 million VW-Rivian joint venture that will result in a new Rivian-based zonal architecture for future VW Group EVs.

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