Why Rivian Spun Off a Unit Nobody Knew Existed
It's not at all unusual for a company to spin off a segment of its business: Such events happen all the time. But what's much more rare is when a company spins off a segment of its business that investors didn't know existed in the first place. That's exactly what happened when Rivian Automotive (NASDAQ: RIVN) announced it would spin off its micromobility unit into a new company: Also Inc.To say Rivian's spinoff announcement on March 26 surprised a few people would be an understatement. Investors across the globe took a second look at the press release, likely unsure if what they'd read was true. But it is true. Rivian started a stealth program focused on micromobility several years ago due to what it viewed as a rising need for small electric transportation."For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed," said founder and CEO RJ Scaringe in the press release. "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." Continue reading
It's not at all unusual for a company to spin off a segment of its business: Such events happen all the time. But what's much more rare is when a company spins off a segment of its business that investors didn't know existed in the first place. That's exactly what happened when Rivian Automotive (NASDAQ: RIVN) announced it would spin off its micromobility unit into a new company: Also Inc.
To say Rivian's spinoff announcement on March 26 surprised a few people would be an understatement. Investors across the globe took a second look at the press release, likely unsure if what they'd read was true. But it is true. Rivian started a stealth program focused on micromobility several years ago due to what it viewed as a rising need for small electric transportation.
"For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed," said founder and CEO RJ Scaringe in the press release. "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."
