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Mysterious electric vehicle startup, Rivian Automotive closes deal on massive manufacturing facility in Illinois

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Michigan-based electric vehicle startup, Rivian Automotive, just closed its purchase of the Mitsubishi Motors North America facility in Normal, Illinois. Records show that the factory was first purchased by liquidation firm, Maynards Industries, in June of 2016 for $2.5M, not including machinery, before Rivian’s recent acquisition for an undisclosed amount. The electric car upstart plans to invest $40.5 million into the factory over the next five years and begin vehicle production in 2019.

Rivian Automotive first began discussions with the town and factory owner in mid-September, before announcing on December 9 that they had entered into an agreement to purchase the facility. The Town of Normal gave the company an incentive package, including a five-year tax abatement and a $1 million grant contingent upon the hiring of approximately 1,000 workers and a $175 million investment into the site through 2024.

(Photo: Rivian)

“We had all but given up hope on a buyer for the Mitsubishi Plant,” Mark Peterson, Town of Normal City Manager, said in a report to the Mayor and the Town Council. Based on records received from the Town of Normal, it is evident that city officials spent countless hours working on the deal.

“As a community, we are thrilled that Rivian has chosen us. It is incredibly rare that a major manufacturing facility in Midwest shutters and then finds new life,” said Town of Normal Mayor Chris Koos in a comment to Teslarati.

The company was founded in 2009 as Mainstream Motors in Florida and later changed its name to Avera Automotive, before becoming Rivian Automotive in 2011. They relocated their operations to Detroit Michigan in Fall 2015 after receiving financial backing from an undisclosed investor. Until today, Rivian Automotive has been operating in stealth mode. The company has launched a newly refreshed website announcing their presence within the electric car space.

The Mitsubishi Factory that Rivian Automotive purchased (Photo: Rivian)

Rivian’s new website claims, “Rivian is developing a flexible electric platform that will underpin our launch portfolio. Our vehicles are being optimized around the electric architecture to deliver outstanding performance, efficiency, packaging, durability and safety.”

Mitsubishi Motors built the facility in 1988 in a joint partnership with Chrysler Corporation and then became the sole operator of the plant in 1991. The 2.4 million square-foot plant is capable of producing over 240,000 vehicles per year and sits on over 500 acres of land. In 2012, Mitsubishi invest over $100 million into the plant to produce the new Mitsubishi Outlander Sport. Due to disappointing sales, Mitsubishi announced the closure in August 2015 and ceased operations in May 2016.

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Mitsubishi Motors Factory in August 2015 (Photo: Christian Prenzler)

The chances of success are slim in the automotive sector, but Rivian’s acquisition of the plant gives them a competitive advantage over others. While would-be competitor Faraday Future struggles to finance construction on their North Las Vegas factory, Rivian already has a manufacturing facility that requires relatively little capital to bring back to a production-ready state.

https://www.youtube.com/watch?v=TloizFWADNw

Rivian Automotive was unable to be reached for comment.

The Bloomington-Normal Economic Development Council did not return our request for comment.

Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Elon Musk’s warning to legacy automakers: Tesla FSD licensing snub echoes EV dismissal

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tesla interior operating on full self driving
Credit: TESLARATI

Elon Musk said in late November that he’s “tried to warn” legacy automakers and “even offered to license Tesla Full Self-Driving, but they don’t want it,” expressing frustration with companies that refuse to adopt the company’s suite, which will eventually be autonomous.

Tesla has long established itself as the leader in self-driving technology, especially in the United States. Although there are formidable competitors, Tesla’s FSD suite is the most robust and is not limited to certain areas or roadways. It operates anywhere and everywhere.

The company’s current position as the leader in self-driving tech is being ignored by legacy automakers, a parallel to what Tesla’s position was with EV development over a decade ago, which was also ignored by competitors.

The reluctance mirrors how legacy automakers initially dismissed EVs, only to scramble in catch-up mode years later–a pattern that highlights their historical underestimation of disruptive innovations from Tesla.

Elon Musk’s Self-Driving Licensing Attempts

Musk and Tesla have tried to push Full Self-Driving to other car companies, with no true suitors, despite ongoing conversations for years. Tesla’s FSD is aiming to become more robust through comprehensive data collection and a larger fleet, something the company has tried to establish through a subscription program, free trials, and other strategies.

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Tesla CEO Elon Musk sends rivals dire warning about Full Self-Driving

However, competing companies have not wanted to license FSD for a handful of speculative reasons: competitive pride, regulatory concerns, high costs, or preference for in-house development.

Déjà vu All Over Again

Tesla tried to portray the importance of EVs long ago, as in the 2010s, executives from companies like Ford and GM downplayed the importance of sustainable powertrains as niche or unprofitable.

Musk once said in a 2014 interview that rivals woke up to electric powertrains when the Model S started to disrupt things and gained some market share. Things got really serious upon the launch of the Model 3 in 2017, as a mass-market vehicle was what Tesla was missing from its lineup.

This caused legacy companies to truly wake up; they were losing market share to Tesla’s new and exciting tech that offered less maintenance, a fresh take on passenger auto, and other advantages. They were late to the party, and although they have all launched vehicles of their own, they still lag in two major areas: sales and infrastructure, leaning on Tesla for the latter.

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Musk’s past warnings have been plentiful. In 2017, he responded to critics who stated Tesla was chasing subsidies. He responded, “Few people know that we started Tesla when GM forcibly recalled all electric cars from customers in 2003 and then crushed them in a junkyard,” adding that “they would be doing nothing” on EVs without Tesla’s efforts.

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Companies laughed off Tesla’s prowess with EVs, only to realize they had made a grave mistake later on.

It looks to be happening once again.

A Pattern of Underestimation

Both EVs and self-driving tech represent major paradigm shifts that legacy players view as threats to their established business models; it’s hard to change. However, these early push-aways from new tech only result in reactive strategies later on, usually resulting in what pains they are facing now.

Ford is scaling back its EV efforts, and GM’s projects are hurting. Although they both have in-house self-driving projects, they are falling well behind the progress of Tesla and even other competitors.

It is getting to a point where short-term risk will become a long-term setback, and they may have to rely on a company to pull them out of a tough situation later on, just as it did with Tesla and EV charging infrastructure.

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Tesla has continued to innovate, while legacy automakers have lagged behind, and it has cost them dearly.

Implications and Future Outlook

Moving forward, Tesla’s progress will continue to accelerate, while a dismissive attitude by other companies will continue to penalize them, especially as time goes on. Falling further behind in self-driving could eventually lead to market share erosion, as autonomy could be a crucial part of vehicle marketing within the next few years.

Eventually, companies could be forced into joint partnerships as economic pressures mount. Some companies did this with EVs, but it has not resulted in very much.

Self-driving efforts are not only a strength for companies themselves, but they also contribute to other things, like affordability and safety.

Tesla has exhibited data that specifically shows its self-driving tech is safer than human drivers, most recently by a considerable margin. This would help with eliminating accidents and making roads safer.

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Tesla’s new Safety Report shows Autopilot is nine times safer than humans

Additionally, competition in the market is a good thing, as it drives costs down and helps innovation continue on an upward trend.

Conclusion

The parallels are unmistakable: a decade ago, legacy automakers laughed off electric vehicles as toys for tree-huggers, crushed their own EV programs, and bet everything on the internal-combustion status quo–only to watch Tesla redefine the industry while they scrambled for billions in catch-up capital.

Today, the same companies are turning down repeated offers to license Tesla’s Full Self-Driving technology, insisting they can build better autonomy in-house, even as their own programs stumble through recalls, layoffs, and missed milestones. History is not merely rhyming; it is repeating almost note-for-note.

Elon Musk has spent twenty years warning that the auto industry’s bureaucratic inertia and short-term thinking will leave it stranded on the wrong side of technological revolutions. The question is no longer whether Tesla is ahead–it is whether the giants of Detroit, Stuttgart, and Toyota will finally listen before the next wave leaves them watching another leader pull away in the rear-view mirror.

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This time, the stakes are not just market share; they are the very definition of what a car will be in the decades ahead.

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Waymo driverless taxi drives directly into active LAPD standoff

No injuries occurred, and the passengers inside the vehicle were safely transported to their destination, as per a Waymo representative.

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Credit: Alex Choi/Instagram

A video posted on social media has shown an occupied Waymo driverless taxi driving directly into the middle of an active LAPD standoff in downtown Los Angeles. 

As could be seen in the short video, which was initially posted on Instagram by user Alex Choi, a Waymo driverless taxi drove directly into the middle of an active LAPD standoff in downtown Los Angeles. 

The driverless taxi made an unprotected left turn despite what appeared to be a red light, briefly entering a police perimeter. At the time, officers seemed to be giving commands to a prone suspect on the ground, who looked quite surprised at the sudden presence of the driverless vehicle. 

People on the sidewalk, including the person who was filming the video, could be heard chuckling at the Waymo’s strange behavior. 

The Waymo reportedly cleared the area within seconds. No injuries occurred, and the passengers inside the vehicle were safely transported to their destination, as per a Waymo representative. Still, the video spread across social media, with numerous netizens poking fun at the gaffe. 

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Others also pointed out that such a gaffe would have resulted in widespread controversy had the vehicle involved been a Tesla on FSD. Tesla is constantly under scrutiny, with TSLA shorts and similar groups actively trying to put down the company’s FSD program.

A Tesla on FSD or Robotaxi accidentally driving into an active police standoff would likely cause lawsuits, nonstop media coverage, and calls for a worldwide ban, at the least.

This was one of the reasons why even minor traffic infractions committed by the company’s Robotaxis during their initial rollout in Austin received nationwide media attention. This particular Waymo incident, however, will likely not receive as much coverage.  

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Tesla Model Y demand in China is through the roof, new delivery dates show

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Credit: Tesla China

Tesla Model Y demand in China is through the roof, and new delivery dates show the company has already sold out its allocation of the all-electric crossover for 2025.

The Model Y has been the most popular vehicle in the world in both of the last two years, outpacing incredibly popular vehicles like the Toyota RAV 4. In China, the EV market is substantially more saturated, with more competitors than in any other market.

However, Tesla has been kind to the Chinese market, as it has launched trim levels for the Model Y in the country that are not available anywhere else. Demand has been strong for the Model Y in China; it ranks in the top 5 of all EVs in the country, trailing the BYD Seagull, Wuling Hongguang Mini EV, and the Geely Galaxy Xingyuan.

The other three models ahead of the Model Y are priced substantially lower.

Tesla is still dealing with strong demand for the Model Y, and the company is now pushing delivery dates to early 2026, meaning the vehicle is sold out for the year:

Tesla experienced a 9.9 percent year-over-year rise in its China-made EV sales for November, meaning there is some serious potential for the automaker moving into next year despite increased competition.

There have been a lot of questions surrounding how Tesla would perform globally with more competition, but it seems to have a good grasp of various markets because of its vehicles, its charging infrastructure, and its Full Self-Driving (FSD) suite, which has been expanding to more countries as of late.

Tesla Model Y is still China’s best-selling premium EV through October

Tesla holds a dominating lead in the United States with EV registrations, and performs incredibly well in several European countries.

With demand in China looking strong, it will be interesting to see how the company ends the year in terms of global deliveries.

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