Rivian spinoff Also is set to introduce a line of small electric vehicles, a move that could shift consumer focus away from the increasingly larger trucks and SUVs that dominate U.S. roads.
New venture backed by venture capital
The Palo Alto startup, named Also, announced a $105 million investment from Eclipse Ventures. Rivian retained a “substantial minority stake” and will keep a seat at the board, with CEO RJ Scaringe serving as chairman. The funding round was disclosed in a press release that Rivian had kept under wraps until now.
Product strategy and timeline
Also plans to roll out its first model in early 2026, initially targeting the United States and Europe before expanding worldwide. The company describes the upcoming vehicle as part of a broader “range of exciting, small EVs” built on a vertically integrated platform that includes in‑house motors, batteries, electronics and software.
According to its website, the flagship will offer a “user experience that is unlike anything seen in these segments before.”
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Efficiency claims and market context
Also argues that short journeys could be served by smaller, lighter electric vehicles that consume less energy per mile. If the efficiency claims hold, the vehicles could indeed use far less electricity than current midsize models.
Industry observers note that the market for compact EVs remains fragmented. While many manufacturers are developing sub‑compact models, few have launched a dedicated platform that handles all core components internally. “Vertical integration can lower costs, but it also requires significant upfront investment,” said a analyst at an automotive research firm who asked not to be named. “It will be interesting to see whether the spinoff can achieve the economies of scale needed to keep prices low.”
Rivian’s broader shift toward smaller vehicles
Rivian itself is moving beyond its flagship R1T pickup and R1S SUV. The company is working on smaller R3 and R3X rugged hatchbacks.
Some critics argue that Rivian’s diversification could dilute its brand identity, which was built around adventure‑ready trucks. Others view the expansion as a practical response to consumer trends that favor lower‑cost, city‑friendly vehicles.
Related: Hyundai Sonata Hybrid Offers Fuel Efficiency
Potential collaboration with Rivian’s retail network
The press release mentioned that Also may “selectively use some of Rivian’s retail footprint.” If that materializes, the spinoff could benefit from existing showrooms and service centers, reducing the need for a separate dealership network.
They also raise questions about how the two entities will coordinate inventory and service responsibilities.
Regulatory and consumer challenges
Launching a new class of EVs involves dealing with a complex web of regulations, from safety standards to emissions credits. Additionally, consumer habits in the United States still favor larger vehicles, especially in suburban and rural areas. The shift to smaller EVs will likely require both policy incentives and changes in public perception.
“We’re not just selling a car; we’re trying to change a mindset,” a spokesperson for Also said. “People need to see that a compact electric vehicle can be just as practical for daily life.”
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Looking ahead
Also’s early‑2026 launch will be the first real test of its claims. If the vehicles deliver on efficiency and affordability, they could carve out a niche among commuters who travel short distances.
They aim for city commuters.
Conversely, if the price point remains high or the range falls short of expectations, the market may stay focused on larger, more established EV models. For now, the industry will watch closely as Rivian’s spinoff attempts to offer an alternative to the “bigger is better” mentality that has shaped recent vehicle trends. Whether it succeeds may depend as much on consumer willingness to rethink mobility as on the technology itself.
