A Rivian Investment Gets a Big Boost. Why the Stock Didn’t Take Off.

Rivian expects to deliver fewer electric vehicles this year than in 2024. (Mario Tama/Getty Images)

The electric-vehicle start-up Rivian got a valuation boost, sort of, as a business it spun out in March received an investment, indicating it is worth much more than at the time of the deal.

That is good news, though investors appear to have other things on their minds.

Rivian spun out its micromobility business in March, saying it had kept a minority stake. Now, that business, called Also, has received a new investment from the venture-capital company Greenoaks Capital, according to Bloomberg.

The investment values Also at $1 billion, up from closer to $200 million at the time of the spin.

Rivian declined to comment on valuation in March. It and Greenoaks didn’t immediately respond to requests for comment on Wednesday.

While it isn’t clear what percentage of Also is owned by Rivian, the boost could be worth hundreds of millions to the EV maker. It is a nice bump considering the company’s market value is about $16 billion.

Still, shares were up only 0.5% on Wednesday, closing at $13.20. That is a small move, considering the S&P 500 and Dow Jones Industrial Average were up 0.6% and 0.5%, respectively.

Investors are probably more focused on how policy changes under the Trump administration will affect electric cars than on micromobility, which includes electric bikes and other small electric vehicles. President Donald Trump’s tax and spending bill eliminates the $7,500 purchase tax credit for qualifying EVs on Sept. 30, a hefty price increase for anyone looking to go green.

The legislation also gives tax deductions for car-loan interest for vehicles that are assembled in the U.S. Rivian vehicles qualify for that benefit, which might equate to $1,000 or $2,000 off the sticker price, but there are a lot of caveats. Taxpayers have to itemize their filings to get that benefit, and there are income tests. If buyers make too much money, the amount deducted is ratcheted down.

Rivian expects to deliver about 43,000 cars in 2025, down from about 52,000 in 2024. Selling luxury EVs has been harder lately. Rivian is looking to boost sales in 2026 by introducing lower-priced models.

Coming into Wednesday trading, Rivian stock was down about 6% over the past month.

Write to Al Root at allen.root@dowjones.com