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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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Tesla Optimus is learning martial arts in new video teasing capabilities

For the past few months, Tesla has been refining its capabilities and making some serious progress on what Optimus is capable of. This morning, Musk released a new video showing Optimus learning Kung Fu, perhaps its most impressive feat yet.

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Credit: Elon Musk | X

Tesla Optimus is learning martial arts, a new video released by CEO Elon Musk shows, a crazy development and advancement in the robotics project the company has been working on for a few years.

Optimus has been a major focus of Tesla for the past several years, especially as Musk has said he believes it will be the biggest product of all time and could be the biggest contributor to the company’s valuation.

For the past few months, Tesla has been refining its capabilities and making some serious progress on what Optimus is capable of. This morning, Musk released a new video showing Optimus learning Kung Fu, perhaps its most impressive feat yet:

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The video shows Optimus working with a Kung Fu teacher, known as a Shifu, going through what appears to be some sort of routine of combinations. It’s quite impressive to see the fluidity of the movements and Optimus’s ability to keep up with Shifu.

Tesla has been “working hard” to scale Optimus production, Musk said last week, a project that has obviously confronted both AI and manufacturing teams with a variety of challenges.

The plan is to have an annual production run-rate of one million units by 2030, and there were plans to build 5,000 units this year.

Elon Musk gives update on Tesla Optimus progress

Musk still believes Optimus will make up roughly 80 percent of Tesla’s value. In January, he said it would be “overwhelmingly the value of the company.”

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Tesla plans to launch the Gen 3 version of Optimus soon, and although a video of a new-look prototype was released by Marc Benioff, the CEO of Salesforce, the company’s frontman stated that this was not what the next-generation prototype would look like.

Elon Musk confirms Tesla has never shown Optimus V3 design yet

This video seems to show there is still significant progress being made on the Optimus project, and it will be perhaps one of the most impressive humanoid robots available to consumers in the coming years.

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Elon Musk

Tesla Full Self-Driving v14 gets new release date, Elon Musk details

“Last minute bug cropped up with V14. Released is pushed to Monday, but that gives us time to add a few more features.”

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Credit: Tesla

Tesla’s Full Self-Driving version 14 has gotten a new release date after new details from CEO Elon Musk opened up some new perspectives on the suite.

Originally slated for an “early wide release” of v14 this past week, then a launch of v14.1 and v14.2 this week and next week, respectively, delays arose after Tesla’s Autopilot team found some issues within the software.

Tesla FSD V14 set for early wide release next week: Elon Musk

Musk detailed on X this morning that a “last minute bug” appeared before release, which has now pushed FSD v14’s release back to this Monday:

Musk also said the delay would give Tesla the ability to “add a few more features,” which seems like an added advantage, although he did not provide any additional details on what these features could be.

In classic Musk fashion, he has teased the capabilities of this version of the FSD suite since it became public knowledge that Tesla was working on it. He said that it is the second most important update for the AI/Autopilot team since FSD v12.

V14 will have a parameter count that is ten times what previous iterations were, which should provide more accuracy and a more human-like operation.

Musk has said v14 “feels alive” and has used the word “sentient” to describe its performance. The goal with the new FSD rollouts is to eliminate as many interventions as possible, making it as close to human driving as possible.

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Investor's Corner

Tesla just got a weird price target boost from a notable bear

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Credit: Tesla Manufacturing

Tesla stock (NASDAQ: TSLA) just got a weird price target boost from a notable bear just a day after it announced its strongest quarter in terms of vehicle deliveries and energy deployments.

JPMorgan raised its price target on Tesla shares from $115 to $150. It maintained its ‘Underweight’ rating on the stock.

Despite Tesla reporting 497,099 deliveries, about 12 percent above the 443,000 anticipated from the consensus, JPMorgan is still skeptical that the company can keep up its momentum, stating most of its Q3 strength came from leaning on the removal of the $7,500 EV tax credit, which expired on September 30.

Tesla hits record vehicle deliveries and energy deployments in Q3 2025

The firm said Tesla benefited from a “temporary stronger-than-expected industry-wide pull-forward” as the tax credit expired. It is no secret that consumers flocked to the company this past quarter to take advantage of the credit.

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The bump will need to be solidified as the start of a continuing trend of strong vehicle deliveries, the firm said in a note to investors. Analysts said that one quarter of strength was “too soon to declare Tesla as having sustainably returned to growth in its core business.”

JPMorgan does not anticipate Tesla having strong showings with vehicle deliveries after Q4.

There are two distinct things that stick out with this note: the first is the lack of recognition of other parts of Tesla’s business, and the confusion that surrounds future quarters.

JPMorgan did not identify Tesla’s strength in autonomy, energy storage, or robotics, with autonomy and robotics being the main focuses of the company’s future. Tesla’s Full Self-Driving and Robotaxi efforts are incredibly relevant and drive more impact moving forward than vehicle deliveries.

Additionally, the confusion surrounding future delivery numbers in quarters past Q3 is evident.

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Will Tesla thrive without the EV tax credit? Five reasons why they might

Tesla will receive some assistance from deliveries of vehicles that will reach customers in Q4, but will still qualify for the credit under the IRS’s revised rules. It will also likely introduce an affordable model this quarter, which should have a drastic impact on deliveries depending on pricing.

Tesla shares are trading at $422.40 at 2:35 p.m. on the East Coast.

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