Al Root

On Wednesday, electric-vehicle start-up Rivian Automotive announced the spin-off its "micromobility" business.

That's great, and the stock is higher, but no one really knew Rivian had a micromobility business, which can refer to electric scooters, bikes, and other things with batteries and electric motors that people use to get places.

The new company will be called Also, and has secured a $105 million investment from Eclipse Ventures, a venture-capital fund. Rivian CEO R.J. Scaringe will serve as Also's board chairman.

"For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed," said Scaringe in a news release. "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."

Rivian will have a minority stake in Also, which values the company at a minimum of about $211 million. Rivian didn't immediately respond to a request for comment about the valuation, or what the micromobility business focuses on.

The move might come as a surprise to investors. "Micromobility" doesn't appear in Rivian's annual report, and it hasn't come up in recent conference calls.

Rivian stock was up 2.3% in early trading at $12.65 a share, while the S&P 500 was down 0.3% and Dow Jones Industrial Average was up 0.3%.

Also probably isn't a major factor in the stock's rise. The 2%-plus move adds about $300 million to Rivian's market value. That would be multiples of Rivian's stake in Also.

R2 is probably the main reason. Rivian added in its news release that it was on track to start production of its lower-price vehicle platform called R2 in 2026. Investors expect those vehicles to drive significant growth for the company.

Write to Al Root at allen.root@dowjones.com

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March 26, 2025 10:58 ET (14:58 GMT)

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