Rivian spinoff Also wants to reinvent the wheel — but first, it has to ship
Rivian's e-bike spinoff, Also, is finally shipping its modular TM-B e-bike after facing significant supply chain challenges, particularly competing with AI server demands for components.
Intelligence analysis by Gemini 2.5 Flash Lite
Also, a spinoff from Rivian, is overcoming major supply chain hurdles, including competition for components with AI server manufacturers, to ramp up production of its modular TM-B e-bike and prepare for other models.
Imagine building a super cool electric bike, but all the special computer chips and parts you need are also wanted by people building super-fast computers for AI. Also had to wait and find new ways to get these parts, like finding a different kind of building block when the one they wanted was all gone, to finally get their bikes to customers.
Analysis
Also's Production Ramp
Also, the micromobility spinoff from Rivian, is navigating the intricate process of scaling production for its TM-B electric bike. President Chris Yu emphasizes that the company's approach involves designing and building components down to the integrated circuits (ICs), a stark contrast to traditional original equipment manufacturing (OEM) models. This vertical integration, while offering greater control, has exposed Also to the full spectrum of supply chain complexities over the past year. The company found itself in direct competition for critical components like ICs, memory, and printed circuit board assembly (PCBA) materials with the burgeoning demand from AI server farms. This unexpected overlap created global shortages, particularly for sophisticated board materials needed for Also's in-house designed inverter board, which shares similar thermal requirements with AI hardware. Consequently, Also had to undertake significant efforts to requalify and re-source these essential parts.
AI Server Component Crunch
The intense demand for AI server hardware has had a ripple effect across various technology sectors, including light electric vehicles. Yu specifically points to the competition for ICs, compute, and memory as a major bottleneck. The thermal management requirements for Also's high-performance inverter board, designed entirely in-house, mirrored those of AI servers, leading to a global shortage of suitable board materials. This forced Also to adapt by requalifying and finding alternative suppliers for these critical components. The company's experience underscores a broader trend where the rapid expansion of AI infrastructure is straining global supply chains, impacting even seemingly unrelated industries like e-bike manufacturing. Overcoming these challenges required significant engineering effort and strategic sourcing.
Rivian's Shared Challenges
Chris Yu draws parallels between Also's struggles and those faced by its parent company, Rivian. He describes a three-way Venn diagram illustrating the overlap in supply chains between Also (vertically integrated small EVs), Rivian (full-size automotive EVs), and broader AI hardware. While the direct overlap with Rivian offers some benefits, it also means sharing similar supply chain constraints. Yu and Rivian CEO RJ Scaringe frequently discuss strategies for managing specific parts or supply chain limitations. The common approaches involve either pressuring suppliers, finding identical alternative components, or, as both companies have had to do, completely redesigning and requalifying systems around replacement parts. This shared experience highlights the systemic nature of current supply chain vulnerabilities, affecting even well-established automotive manufacturers.
Key points
- Also, a Rivian spinoff, is ramping up production of its modular TM-B e-bike after facing supply chain delays.
- The company competed with AI server manufacturers for critical components like ICs and specialized board materials.
- Also's vertical integration required significant redesign and requalification of components due to shortages.
- The challenges faced by Also mirror those experienced by its parent company, Rivian, in securing parts.
- Also is also preparing to launch standard and performance versions of the e-bike and its TM-Q electric four-wheeler.
If Also successfully navigates its production ramp and overcomes initial software glitches, it could establish itself as a significant player in the modular e-bike market, potentially paving the way for its electric four-wheeler delivery vehicles. The company's vertical integration and proprietary software could offer a competitive edge in a growing market.
Continued supply chain disruptions or persistent software issues could further delay deliveries and damage customer trust, potentially hindering Also's ability to scale and compete effectively. The complexity of its modular design and reliance on specialized components also present ongoing risks.
