Rivian Pivots to E-Bikes in Shocking $105 Million Diversification Play—What?!

So apparently, Rivian just spun off its secret e-bike lab into a standalone company called Also, because of course, naming things is hard. But alas, this move comes with $105 million in funding from Eclipse Ventures and a clear attempt to diversify beyond expensive off-road toys for Patagonia-wearing tech bros who think a weekend trip to Joshua Tree qualifies as an "adventure."

(Source: Giphy) 

In short, for years, CEO RJ Scaringe has been hinting at Rivian’s interest in micro mobility, and now the company is actually doing something about it. The premise is simple: cities are clogged, people are broke, and not everyone wants—or needs—a 7,000-pound electric truck. Which is why Also, aims to fill that gap with smaller, more affordable electric vehicles, likely starting with e-bikes and scooters.

Of course, Rivian isn’t fully cutting ties. It’s keeping a “substantial minority stake” in Also, which means it still wants a piece of the action without having to fully commit. Scaringe is staying on as board chair, and Rivian will likely showcase Also’s products in its retail locations, because what better way to convince someone to drop $80K on an R1S than by offering them a $3,000 e-bike as a consolation prize? Genius. 

(Source: The Verge) 

On the other hand though, automakers trying to sell e-bikes has been an absolute dumpster fire. Porsche, Mercedes, Jeep, GM, Hummer… all of them have tried, and none have managed to make it work. The e-bike industry itself is a mess, with VanMoof going bankrupt and Rad Power Bikes cycling through CEOs like it’s 2024 all over again. Which begs the question, why does Rivian think Also will be different? The argument is that Rivian’s engineering and supply chain expertise could bring down costs and improve quality in a market where an overpriced metal frame with a battery currently passes for “premium.” Scaringe has pointed out that good e-bikes are absurdly expensive, often running $6,000 to $10,000, and that’s largely due to a fragmented supply chain and lack of scale. Meaning, if Also can leverage Rivian’s manufacturing capabilities to make high-quality e-bikes at a reasonable price, it might actually stand a chance. 

Additionally, there’s also a commercial angle here. Also isn’t just targeting rich hobbyists who make Peloton their entire personality. In fact, it’s reportedly in "advanced discussions" with commercial partners for last-mile delivery solutions, especially in dense urban areas where cars and vans are becoming less viable. If that pans out, this could be more than just a vanity project. 

(Source: Giphy) 

Which is why the bigger picture that’s important to take from this is that Rivian is doing smart by diversifying (kinda). The EV market is becoming a bloodbath, and while Rivian is still rolling out new SUVs and trucks, it can’t afford to be a one-trick pony. Also gives it a foothold in a rapidly growing segment without forcing it to fully commit to the e-bike business itself.

Of course, whether this actually works or not is another story. Also could end up as another overhyped micro mobility startup that burns through VC cash before fading into irrelevance. Or it could be the rare example of an automaker successfully expanding into a new category. Either way, Rivian is making a bet that the future of mobility isn’t just about bigger, more expensive EVs—it’s also about smaller, cheaper alternatives that might actually make sense for the average person. For now, keep an eye on this story, and place your bets accordingly, friends. Until next time… 

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock—right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside last week's Stocks.News premium article—click here to check it out ASAP! 

Stocks.News does not hold positions in companies mentioned in the article.