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Rivian creates another spinoff company called Mind Robotics

Read the full articleRivian creates another spinoff company called Mind Robotics on TechCrunch
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What Happened

It's the second time this year Rivian has spun out a new company, after it created micromobility startup Also in March.

Our Take

Rivian's spinning out companies at the same rate they're burning cash. Second spinoff in two months = trying way too hard to look innovative while the core business (EVs) is actively struggling. This is financial theater: create a shiny new company, get some buzz, distract from the fact that R1T sales are declining.

Mind Robotics will probably do okay (robotics is hot), but Rivian will still be underwater. Separating units doesn't fix a broken core business.

What To Do

If you're an investor in Rivian spinouts, good luck; the real problem isn't the spinouts, it's Rivian's core margins.

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