Rivian has debuted its latest generation of the R1T pickup and R1S SUV, and CEO RJ Scaringe recently told one publication about the company’s massive cost-savings efforts in recent months, following the retooling of its Illinois factory.
During a media tour of Rivian’s Illinois factory this month, CEO RJ Scaringe told Reuters that the automaker’s retooling of the plant has resulted in a 35 percent drop in the cost of materials for its Amazon delivery vans, alongside savings of a “similar magnitude” for its other production lines.
Rivian shut down the Illinois factory to re-tool its production lines in April, keeping the factory closed for about 25 days.
According to Scaringe, the electric vehicle (EV) maker has removed more than 100 steps in battery production, along with the removal of 52 pieces of equipment from its body shop, and over 500 from the updated R1T and R1S design. Scaringe and others are hoping the culmination of these cost-cutting measures and design simplifications can lead Rivian to profitability, with the CEO adding that the costs to build its EVs have now “improved dramatically.”
“We did a similar process of really going through and redesigning a number of components for cost, so we took over 35% of the material cost out of the vans,” Scaringe said.
Meet the new R1. Reengineered and redesigned for more efficiency and higher performance. What’s our favorite thing about the new R1T and R1S? Hard to choose!
Read more about our second generation vehicles: https://t.co/cgYpeq9p1c pic.twitter.com/EtOzZAFZvr
— Rivian (@Rivian) June 6, 2024
Rivian has since updated the software, drive units, and battery packs used to build its R1 vehicles, with the battery modules now coming in one piece rather than in separate parts that would require assembly. Additionally, the new R1 units have become lighter, partially due to the use of substantially fewer wires.
“The design of the parts and the design of the plant facilitate making the vehicle easier to build,” Scaringe noted.
Ultimately, these changes have also decreased necessary labor time, and improved the time assembly takes by around 30 percent. Rivian VP of Manufacturing Tim Fallon highlights the company’s hopes that the changes can result in turning a profit on its EVs.
“All of that together leads to us being able to get to our path to profitability and be gross-margin positive,” Fallon said.
Rivian reported a loss of $38,784 per vehicle delivered in the first quarter, down from the previous quarter, in which that figure landed at $43,372.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
News
Tesla sees explosive sales growth in UK, Spain, and Netherlands in June
In countries like the UK, Spain, and the Netherlands, Tesla’s June sales surged significantly compared to May.

After months of declining deliveries and market pressure, Tesla appears to be regaining its footing in Europe. Tesla saw a significant spike in electric vehicle registrations across several key markets in June, signaling renewed momentum for the EV maker.
In countries like the UK, Spain, and the Netherlands, Tesla’s June sales surged significantly compared to May.
Explosive growth in the UK, Spain, and the Netherlands
Tesla’s most notable performance came in the United Kingdom, where June registrations jumped 224% month-over-month, and Spain, where registrations more than tripled. This made Tesla the top-selling electric car brand for the month in both countries, as per a CarUp report.
The Netherlands saw Tesla become the best-selling car brand in June across all vehicle segments. Tesla’s continued success in Norway also appears to be holding steady, though full figures for the market have not yet been finalized.
These numbers suggest Tesla’s European sales slump may have been temporary, with strong demand returning amid the ramp of the new Model Y, which was largely unavailable in the first quarter.
Mixed results in Sweden but signs of progress
In Sweden, Tesla’s performance remained mixed in June. While year-over-year registrations dropped over 70% in June, the company’s market share jumped 72% compared to May. Tesla now holds an 8.6% market share in the Swedish EV market, which means that one in every twelve new electric vehicles registered in the country last month was a Tesla, as per data compiled by eu-evs.com.
So far in 2025, Tesla ranks as the fourth-largest EV brand in Sweden, with 3,461 vehicles registered, trailing Volkswagen, Volvo, and Kia. The Tesla Model Y has remained a strong seller, ranking as the third most registered electric vehicle this year, behind the Volkswagen ID.7 and Volvo XC40, despite being largely absent in Q1 2025.
News
Xiaomi CEO congratulates Tesla on first FSD delivery: “We have to continue learning!”
Xiaomi has become one of Tesla’s strongest rivals in China.

Just days after unveiling the Xiaomi YU7, a vehicle that is considered as the Model Y’s strongest competitor yet, Xiaomi CEO Lei Jun gave a nod of respect to Tesla and its Full Self-Driving (FSD) program.
In a post on Weibo, Lei Jun highlighted the remarkable nature of Tesla’s first autonomous delivery. He also acknowledged that Xiaomi still has much to learn in the electric vehicle industry.
Xiaomi CEO’s Nod of Respect
Lei Jun’s comments about Tesla’s FSD delivery were shared as a response to Tesla VP Grace Tao’s post about the recent feat. The Tesla VP shared several key aspects of the delivery, from the fact that there was no driver in the Model Y to the vehicle reaching over 70 mph as it drove to its owner.
“For the first time in history, the vehicle was delivered to the owner by itself. There was no driver or remote control throughout the journey, and the maximum speed reached 115 kilometers per hour, and it arrived safely at the customer’s door. This is a brand new Model Y. Tesla always surpasses imagination with disruptive innovation. A new era, exciting!” Tao wrote in her post.
In his response, the Xiaomi CEO acknowledged Tesla’s incredible feat. “Tesla is indeed amazing, leading the industry trends in many areas, especially FSD. We still have to continue learning!” he wrote.


Xiaomi’s Recent Tesla Competitor
The Xiaomi CEO’s comments show that Tesla’s projects and leadership garner a lot of respect in the global electric vehicle sector. While Tesla and Elon Musk tend to be media punching bags in the United States and Europe, the company and its CEO seem to be taken very seriously in China. This was despite China being the world’s most competitive electric vehicle market.
Xiaomi itself has become one of Tesla’s strongest rivals in China, with its first car, the SU7, bringing the fight to the Tesla Model 3. Its most recent vehicle, the YU7, could very well be the Model Y’s most legitimate rival yet, as it is more affordable, bigger, and more feature-laden than Tesla’s best-selling crossover. The YU7 has garnered quite a lot of attention, with Xiaomi receiving 200,000 firm orders for the vehicle within the first three minutes of its launch.
News
Tesla silences FSD critics by posting full video of Model Y delivering itself to customer
When Elon Musk posted that the first Tesla had delivered itself to its owner, critics were quick to question his statement.

It is no secret that Tesla still has ardent critics today, many of whom remain convinced that the company and its leadership are lying about Full Self-Driving (FSD) and its capabilities. It was then no surprise that when Elon Musk announced that the first Tesla had successfully delivered itself to its owner, critics were quick to question the CEO’s statement.
Videos of the all-electric crossover’s solo drive to its owner soon silenced Tesla critics and their claims.
Tesla Posts FSD Video Proof—Twice
While Musk’s post on X about a Tesla delivering itself to a consumer was a notable update, his claims were not accompanied by any video. This was taken by some Tesla critics as a hint that the CEO’s claims were false, and that the feat probably did not happen. Musk, for his part, noted that Tesla would soon be posting a video of the self-driving car’s drive to its owner.
The electric vehicle community did not have to wait very long. Tesla later posted a video of its first autonomous vehicle delivery ever on X, much to the shock of social media users. As could be seen in the video, a Tesla Model Y was able to travel about 30 minutes on its own, from the end of Giga Texas’ production line to the home of its owner, several miles away. Tesla even posted the vehicle’s full 30-minute drive on its official X account later on.
Critics Are Still Skeptical, But It’s Cope at this Point
Of course, Tesla skeptics remained unconvinced that the feat was legitimate, with some pointing out that the Model Y customer seems to have had an X account for years but never posted, at least until his car was delivered. Others also claimed that the whole setup seemed suspicious since the Model Y looked like it had manufacturer plates as it navigated Austin’s streets.
These concerns, however, do not seem like very strong arguments, especially at this point. Based on the evidence, it seems like Tesla really has figured out autonomous driving, and its cars are now able to operate safely on real-world roads on their own. Many have also become silent in their criticisms of Tesla’s FSD feat, especially after the company posted the full video of the Model Y’s autonomous drive. Overall, Tesla critics may remain doubtful about the company and Musk’s claims, but these concerns seem to have become forced at best.
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