Tesla’s Lead at Risk as Rivian Expands Beyond Electric Cars

After a turbulent 2024, the electric vehicle (EV) market has struggled to stabilize in 2025. The lack of a strong focus on clean energy by the current U.S. administration has cast a shadow over the industry’s future, even as Rivian electric car expansion signals new opportunities in the sector.

Once hailed as one of the most promising startups, Rivian (RIVN) is now grappling with a challenging economic environment and facing increasing competition from industry giant Tesla (TSLA).

Despite the popularity of its electric trucks and SUVs among loyal fans. Rivian has not seen the level of share growth it anticipated. CEO RJ Scaringe has recently tried to emulate Elon Musk’s tactics in an attempt to generate excitement for new EV models, but it may be too little, too late.

However, Rivian is not solely focusing on cars. In a surprising turn, the company is branching out into a completely new area of transportation: micromobility.

This move into micromobility, which most people didn’t see coming, is marked by both risk and potential. The micromobility market has seen its fair share of bankruptcies and business failures, making Rivian’s decision an unexpected one.

Companies like Bird and Lime, which once flooded American cities with electric scooters, have largely disappeared, as their business models proved unsustainable.

Bird, once valued at $2.5 billion, filed for bankruptcy in December 2023. Helbiz, now known as micromobility.com, was delisted from the Nasdaq after failing to maintain a share price above $1.

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Yet, Rivian seems confident in this new direction. The company has announced the spin-off of a startup called “Also,” which will focus on producing lightweight electric vehicles in the micromobility space.

Rivian’s Confidence Grows as Eclipse Ventures Invests $105 Million

Despite the industry’s troubled history, Rivian believes there is still potential in this market. The confidence is evident, as Eclipse Ventures recently invested $105 million into the startup, signaling optimism for Also’s prospects.

In an industry dominated by Tesla, Rivian’s shift into micromobility could provide a fresh opportunity to diversify and potentially carve out a niche market.

While it remains to be seen whether this move will pay off. Rivian’s bold strategy highlights its willingness to innovate and adapt in the face of ongoing challenges in the EV sector.

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