Rivian Automotive, Inc. RIVN has officially spun off its micromobility business into a new EV startup called Also, Inc., marking its entry into the lightweight EV market. The new brand will focus on electric scooters, bikes and other lightweight vehicles.

Rivian, best known for its R1S electric SUV and R1T pickup, began a “stealth program” years ago to explore micromobility, recognizing a growing demand for smaller, sustainable transport options. In 2022, the company filed trademarks for electric bicycles, scooters, and related components, aiming to leverage its advanced EV powertrain and software to develop more efficient and cost-effective products.

As Rivian refined its technology and reduced costs, it saw a major opportunity in the micromobility space and the company decided to launch a separate company. Also has secured $105 million in funding from Eclipse Ventures to drive its growth. Rivian CEO RJ Scaringe will serve as Chairman of the board in Also, while Chris Yu, vice president of RIVN’s future programs, will serve as president.

Per Scaringe, a full transition to electrified transportation requires diverse vehicle types and form factors. Also aims to introduce innovative micromobility products that could define new categories. The startup, now comprising about 70 former Apple, Google, Tesla and Uber employees, plans to unveil its first product later this year. While details remain scarce, per Scaringe, it will have a seat, two wheels, a screen, a few computers, and a battery.

Rivian retains a substantial minority stake in Also and anticipates future collaboration, though the new company will operate independently. Meanwhile, RIVN continues preparations for the launch of its midsize R2 and the production expansion at its Normal, IL plant is progressing as planned. Deliveries are expected to begin in the first half of 2026.

RIVN’s Zacks Rank & Key Picks

Rivian carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 30 days. 

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 30 cents and 50 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dana Incorporated (DAN) : Free Stock Analysis Report

Strattec Security Corporation (STRT) : Free Stock Analysis Report

China Yuchai International Limited (CYD) : Free Stock Analysis Report

Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research