Following a tumultuous year in 2024, the electric vehicle (EV) market remains unstable as we progress through 2025. The uncertainty continues due to the present U.S. presidential administration’s minimal emphasis on clean energy, casting doubts on the sector’s future prospects.
Initially considered the sector’s most promising startup, Rivian
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finds itself grappling with a complex economic landscape and continually encounters difficulties as it aims to rival Tesla.
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Its electric trucks and SUVs continue to be well-liked by the company’s supporters, yet this has not been sufficient to boost substantial share growth.
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As reported by James Ochoa, Rivian CEO RJ Scaringe attempted to emulate Elon Musk’s strategies to generate excitement among enthusiasts for their latest electric vehicle models. Nevertheless, this might not be sufficient at this stage. The firm has emphasized, however, that they are not solely concentrating on automobiles.
Rivian is venturing into a fresh realm of transport, which probably came as a surprise to many.
Rivian’s new path is fraught with bankruptcy and delisting occurrences.
In an industry largely controlled by Tesla, steady acceptance is crucial for the prosperity of any new business. Competing with a firm that has unmatched resources and global presence can be intimidating.
It seems Rivian is stepping up to meet the challenge or at least putting significant effort into it. The electric vehicle company has declared that it plans to launch a new venture named Also, focusing on the micro-mobility sector with the aim of developing various compact and light electric transportation solutions.
Related: Analysts have differing opinions on Rivian’s “empty” 2025 forecast
Perhaps the most startling part of this news is that Rivian has turned its attention towards micromobility—a sector often seen as a graveyard for businesses. Just a short time back, U.S. urban areas buzzed with shared electric scooters from firms such as Bird and Lime, easily unlocked via smartphone apps.
Nevertheless, this trend was remarkably brief, since this novel mode of transport failed to be viable economically. A few years down the line, much of the sector had collapsed, including Bird, formerly the nation’s leading electric scooter service with an estimated worth of $2.5 billion, which declared bankruptcy in December 2023.
The downturn in the sector is clearly illustrated by the case of Micromobility.com—previously known as Helbiz—which was removed from the Nasdaq in 2023 following its inability to maintain a stock price above $1 per share for an extended period.
Nevertheless, Rivian remains optimistic about Also’s potential, despite the dubious track record of the market. Eclipse Ventures concurs with this sentiment; they have recently injected $105 million into the startup.
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It also started as a secretive project within the Rivian system a few years back to assess whether the firm’s tech could be adapted for use in more compact vehicles. Rivian has verified that this is indeed feasible. Although Also will operate independently, the organizations will maintain their connection.
“Rivian has taken a minority stake, Scaringe will join its board, and Additionally will utilize the automaker’s technology, retail network, and production efficiencies. Chris Yu, who serves as Rivian’s Vice President of Future Programs, will assume the role of president,” according to the report.
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Rivian isn’t sharing extensive details about its launch.
The outcome for Also will significantly shape the direction of the micromobility industry. While specific information about the electric scooters or bikes they plan to manufacture remains scarce, sources indicate that the company boasts ex-employees from Tesla, Uber, and Google.
Related: Elon Musk omits crucial query during Tesla all-staff meeting
We do know that Also’s main offering is set to commence production next year, which will make it accessible to customers in the U.S. and Europe. Nonetheless, the firm intends to launch both business-oriented and personal vehicles in regions like Asia and Africa.
“For the global shift towards electric vehicles to be complete, various kinds of vehicles with different designs and sizes will be necessary,” said Scaringe.
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I am incredibly enthusiastic about the advancements created by the Also team, which will support a variety of highly attractive micromobility solutions designed to shape new market segments.
Furthermore, the Rivian CEO disclosed that Also will showcase its initial vehicle designs during an event scheduled for 2025. Due to the uncertainty surrounding the company’s strategies and offerings, numerous individuals are expected to watch closely as these design concepts are presented.
Related: Seasoned fund manager presents bold prediction for the S&P 500
