Rivian Automotive Inc (NASDAQ:RIVN) announced the spin-out of its micromobility division into a new company called Also, which will focus on developing lightweight electric vehicles tailored for short trips.
Rivian will retain a minority ownership stake in Also, the electric vehicle-maker said on Wednesday.
Additionally, Also has secured $105 million in Series B funding from Eclipse Ventures.
Rivian CEO RJ Scaringe will serve as chairman of Also's board of directors.
“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” Scaringe said in a statement.
“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.”
Shares of Rivian traded modestly higher following the announcement, up 0.4% at about $12.