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Inside Rivian’s plan to challenge Detroit and electrify the American truck & SUV
Nearly one year ago, McLaren’s top engineer departed the British supercar-maker for a relatively unknown EV startup, Rivian, located 3,000 miles away in Plymouth, Michigan. That engineer, Mark Vinnels, was a founding board member of McLaren and led its engineering team as executive program director for 14 years as they created an entire line of supercars from the ground up. While leaving ultra-high-performance supercars behind seemed crazy at the time, a whole band of McLaren engineers have now followed Vinnels to build world-class electric SUVs and pickups at Rivian.
When Rivian’s CEO, RJ Scaringe, hired Vinnels last November as Executive Director of Engineering and Programs, he tasked him with a familiar mission: build a world-class team and bring their first vehicles to production. Now, Scaringe and Vinnels have attracted engineers across the entire industry, including a whole host of fellow ex-McLaren engineers. From exterior lighting to software and electric propulsion, Rivian’s British talent runs deep.
“These are all truly world-class people, and we had a great team (at McLaren) and we were able to do great things,” Vinnels told Teslarati. “I think a lot of them were motivated in exactly the same way I was.”

Vinnels landed himself at Rivian after a mutual friend, and Rivian board member, Antony Sheriff, insisted that he meet with Scaringe and see what Rivian was working on. “I was super impressed with what I saw, with him (Scaringe) as an individual, and the vision for the company,” he recalled. “From a personal perspective, I had a really interesting opportunity to be involved in something pretty groundbreaking, again.”
While Vinnels had received a variety of job offers from startups over the years, he was particularly impressed by Rivian’s technical achievements and level of funding available. “The concepts were pretty advanced, in terms of the battery, package, detail of the module,” Vinnels said.
Rivian has raised $500M to date from a variety of equity and debt investors. The company has largely been quiet about specific funding deals, but its’ main backers include Sumitomo Corporation of Americas, a US branch of a Japanese conglomerate, and Abdul Latif Jameel, a Saudi Arabia-based family-owned business with close ties to Toyota.
Since Vinnels joined last year, three VPs and three directors have left McLaren to join Rivian, along with several other engineers. While some of these new hires have moved to Rivian’s hubs in the US, the company has recently opened up a development center in the UK.
“The type of people at McLaren are naturally attracted to companies like Rivian, because it’s all about innovation, breaking new ground, doing stuff that is new. How do you attract interesting, dynamic, well-educated engineers; give them great interesting, intellectual, challenging technical problems and a respectable amount of funding to achieve their goals,” Vinnels said. “I think that’s why these people are attracted to what we are doing here. It’s kind of flattering and nice that these guys are making the same decision that I did to come over and work on this great program.”

According to some within Rivian, the biggest recruiting weapon Rivian possesses is Scaringe himself. “People come into the company and they spend ten minutes with him (Scaringe) and they’re sold,” Michael McHale, Director of Corporate Communications at Rivian, said. Vinnels claimed a similar effect on recruiting and building supplier relationships.
“They all love the idea of what we are doing,” Scaringe stated in an interview with Teslarati in July. While building supercars seems like an engineer’s dream job, Scaringe found that many see, “the appeal of doing something that is larger volume and a different performance segment.”
With production of their first two cars looming around the corner, Rivian has ramped up hiring significantly, more than doubling their headcount since the start of the year to approximately 500. In addition to hires from McLaren, Rivian has a significant number of people from Tesla, Faraday Future, and the big three Detroit automakers.
Vinnels’ team is tasked with delivering Rivian’s newly developed “flexible electric platform” to market. The skateboard-like architecture, will not only underpin Rivian’s first two vehicles, an SUV and pick-up truck but another four vehicles in development. The overarching design of all-electric platforms is becoming quite standard in the industry, but the intricate engineering within the platform is where the real magic lies.
While Rivian’s battery management systems and module design were nearly complete when Vinnels joined last year, the suspension, motors, and gearbox have undergone a redesign to squeeze out better performance and efficiency. “We can have such a broad breadth of performance, without traditional compromises (compared to internal combustion engines) and a (higher) level of refinement,” Vinnels said.
Rather than spending hundreds of millions of dollars on building their own factory, Rivian has decided to acquire an existing automotive factory. Rivian purchased a former Mitsubishi factory and all of its contents in January 2017 for $16M. The purchase price represents just 1% of the $1.6B investment (in 2018 dollars) Mitsubishi and Chrysler made building the facility in 1988. The plant houses stamping presses, paint lines, body assembly, general assembly, and a few other sub-assemblies. Even in its heyday, the factory never reached its peak production capacity, which is thought to be above 300,000 vehicles per year.

The company’s plant in Normal, IL saw its last vehicle, a Mitsubishi Outlander Sport, roll off the production line in November 2015. But the plant hasn’t been entirely quiet since then. Rivian first occupied the plant in January 2017 and has 65 employees actively maintaining and preparing the facility for production.
This June, Vinnels was splitting his time between engineering meetings and preparing to start “virtual production” at their 2.6M ft² factory. The “virtual production” exercise allows the nearly 100 people from the engineering, manufacturing, and supply chain teams to walk through every part of the manufacturing process before equipment installation is finalized, spotting any potential issues before they arise in production. Rivian completes this on a monthly basis and often includes several suppliers.
“We’ve got enough detail now to discuss and explain with the manufacturing guys exactly how this vehicle will come together on a component level,” Vinnels explained. “So we start with pretty much the first component, for us its some of the components on the body-in-white and we build up exactly how it be built in the production line.” The process reviews each component on a detailed level from design, materials, and build sequence.
At the moment, Rivian is working on refreshing the facility’s stamping lines and plans to overhaul the body lines and paint lines throughout next year. Scaringe stated that the total renovation of the factory will cost roughly $150M.
In preparation for full production at their factory, Rivian has set up a pilot battery-module production line in their Irvine, CA development facility. Scaringe stated that Rivian plans to start production of their battery modules ahead of vehicle production. The company developed their battery modules from the ground up, including the microchips that run their proprietary battery management system. When production spools up, Rivian plans on producing the battery pack from the module level up in their facility in Normal, IL.

Rivian’s battery module is made up of the same sized battery cells that Tesla uses in the Model 3, commonly referred to as 2170, but the physical configuration of the cells differs quite a bit. Though the module is significantly thicker than Tesla’s, with two cells stacked on top of each other, it’s more energy dense by volume and weight. Separating the two levels of cells is Rivian’s cooling systems. Scaringe credits the module’s unique packaging and their custom battery management system for improving efficiency and performance.
The company has declined to give specific production targets, but stated production volume of their first two vehicles would be in the “tens of thousands.” With plenty of room to grow in their current facility, Rivian plans on steadily growing their production volume over the next decade into “hundreds of thousands.”

Just two years ago, when Lucid Motors and Faraday Future were the talk of the town, very few people in the industry had ever even heard of Rivian. Today, the company is considered far more likely to reach production than those same peers. Unlike other automotive startups, Rivian has a sizeable automotive production facility (Faraday Future’s facility was previously a tire factory and has been largely empty for 20 years) and claims to have a more stable source of financing.
From the get-go, Scaringe knew that he would need to find a unique funding strategy to turn his vision into a reality. Instinctively, he leaned on his alma mater, MIT (Massachusetts Institute of Technology), to find potential funding partners. After finding a few potential like-minded partners, Scaringe landed on a partnership with ALJ (Abdul Latif Jameel). ALJ’s owner and chairman, Mohammed Abdul Latif Jameel, is an MIT alumnus, major donor to the school, and a lifetime member of the MIT Corporation.
Rivian has picked up other investors along the way, but after gaining the backing from ALJ, Scaringe focused quite solely on developing the necessary technology and a go-to-market plan that would differentiate the company.
“They’re (Rivian’s investors) committed to allowing us to continue on the steady path of building the business and launching the product,” Scaringe stated. “It’s precisely what’s allowed us to be so quiet, and not have to be out publicly trying to strum up investor dollars; we can be more focused on what we are doing.”
With Rivian’s roots dating back nearly a decade, Scaringe has shown intense patience and an ability to focus on bringing his core vision to fruition. “I’ve dedicated every ounce of energy I have into building the company,” Scaringe said.
Unlike other EV startups, Faraday Future, Lucid, SF Motors, NIO included, Scaringe isn’t placing his bets on creating another Tesla competitor. He’s set Rivian’s sights on a market full of gas-guzzlers: large trucks and SUVs.
Rivian’s reason for focusing on large trucks and SUVs comes twofold, the lack of vehicle-electrification in the segment and the increasing interest from consumers. Scaringe believes that the segment is ripe for disruption and has lacked real innovation for decades.
“It’s an enormous space. It’s where the Detroit three make essentially all of their money; active vehicles, vehicles that have a high-level of function or utility,” he stated. “What we’re doing is we are bringing a level of technology and performance that resets expectations in this space.”
Scaringe is certainly right about one thing; the Detroit automakers derive an incredible amount of money from their trucks and SUVs. Morgan Stanley’s Adam Jonas estimates that 90% of Ford’s profits come from their truck division, which includes the F-150. In 2017, Ford sold nearly 900K F-150’s, each carrying an average selling price of $45,000. GMC’s Denali line, GM’s most luxurious trucks and SUVs, accounted for over 11% of GM’s US sales in 2017, with each car selling for more than $60,000 on average, according to the NYTimes.
Instead of simply electrifying an F-150 or GMC Yukon, Rivian has reimagined the concept of a large SUV or truck. Much like Tesla reinvented the idea of a sedan with the Model S, adding rear-facing seats, front trunk, and large touchscreen, Rivian is set to unveil an SUV and truck that offer unrivaled off-road performance, abundant storage, and supercar-like performance.
“I think we’re going to be showing something pretty special, in terms of its vehicle package,” Vinnels said. Rivian claims the vehicle will have upwards of 400 miles of range, speed to 60 mph in less than 3 seconds, and wade through 3.5ft of water. Scaringe boasts that Rivian’s vehicles are something you’d want to throw your surfboard, skis, or tent in and escape for the weekend.

Rivian’s largest battery pack holds a staggering 180kWh of energy and delivers 400+ miles of range. Additionally, Rivian will offer 105kWh and 135kWh configurations, with a starting price just over $60K. The top of the line battery pack will start just under $90K and will deliver close to 800hp, Scaringe stated on the LACoMotion podcast. More details around the configuration of the vehicle will be available next week at the reveal.
As Porsche, Mercedes, BMW, and Audi play catch up to Tesla’s premium EV lineup, Rivian is working to reinvent an entirely different market. The company is confident that their upcoming vehicles are built for the world of tomorrow and will shake up Detroit’s perspective on electric vehicles. “We aren’t here just build one vehicle; we’re here to build whatever the lifecycle volume is, 250,000 or 300,000 vehicles. We worry just as much about the last one as the first one,” Vinnels said.
After nearly a decade in the shadows, Rivian is preparing to unveil their first two vehicles in Los Angeles next week. “We’re confident that what we are showing is pretty much exactly what we will be delivering to the customer,” Vinnels said. The unveiling of Rivian’s truck, the R1T, will be live streamed from a private event on the 26th, while the SUV, carrying a similar name, R1S, will be unveiled on stage at the LA Auto Show the following day.
“It will be like nothing else,” Vinnels stated.
News
SpaceX and Google mull massive partnership on Musk’s orbital data dream: report
The two companies are currently in talks for a rocket launch deal to support the placement of data centers in orbit as part of their push into space-based computing.
SpaceX and Google are in the process of ironing out the details of a potential partnership, a new report from the Wall Street Journal says. The two companies are currently in talks for a rocket launch deal to support the placement of data centers in orbit as part of their push into space-based computing.
In a move that blends cutting-edge AI demands with the final frontier of space exploration, Google is in exclusive talks with Elon Musk’s SpaceX for a rocket launch deal to deploy data centers in orbit. The Wall Street Journal is now reporting today, May 12, that the discussions mark Google’s aggressive expansion into space-based computing, addressing the exploding energy needs of artificial intelligence that terrestrial infrastructure can no longer sustain.
Exclusive: Google is in talks with SpaceX for a rocket launch deal as the search giant expands its own efforts to put orbital data centers in space https://t.co/QUCD3cPjxi
— The Wall Street Journal (@WSJ) May 12, 2026
SpaceX, nor Google, have commented on the report.
The catalyst for a potential deal is clear: AI’s voracious appetite for electricity. Global data centers consumed about 415 terawatt-hours (TWh) of electricity in 2024—roughly 1.5 percent of worldwide usage—according to the International Energy Agency. That figure is projected to more than double to around 945 TWh by 2030, with AI-focused servers growing at 30 percent annually, outpacing overall electricity demand growth by more than four times.
Some forecasts peg data center consumption exceeding 1,000 TWh by 2026, equivalent to Japan’s entire national electricity use. A single large AI training facility can draw as much power as 100,000 homes. On Earth, this translates to grid overloads, skyrocketing costs, land shortages, and massive water demands for cooling—constraints that threaten to throttle AI progress.
Orbital data centers promise a radical workaround. In space, satellites can harness constant, unobstructed sunlight for power—solar panels generate roughly five times more energy in orbit than on the ground, with no night cycle or atmospheric interference.
Excess heat radiates harmlessly into the vacuum of space, eliminating energy-intensive cooling systems and water usage. No terrestrial land or power grid is required, freeing operations from regulatory and environmental bottlenecks.
Musk has long championed the concept, framing it as inevitable. “Space-based AI is obviously the only way to scale,” he wrote on SpaceX’s site following the xAI merger. “Global electricity demand for AI simply cannot be met with terrestrial solutions… In the long term, space-based AI is obviously the only way to scale.”
He has repeatedly highlighted solar advantages: “Space has the advantage that it’s always sunny,” and “any given solar panel is going to give you about five times more power in space than on the ground.”
Musk predicted in early 2026 that “in 36 months but probably closer to 30 months, the most economically compelling place to put AI will be space,” adding that within five years, annual space-launched AI compute could surpass Earth’s cumulative total. “SpaceX will be doing this,” he declared when discussing scaled-up Starlink satellites with high-speed laser links for orbital data transfer.
Meanwhile, Google has been quietly advancing a similar vision under Project Suncatcher, its internal “moonshot” initiative. CEO Sundar Pichai has described plans to launch two prototype satellites equipped with Tensor Processing Units (TPUs) by early 2027 for testing thermal management and reliability in orbit. In interviews, Pichai has called orbital computing a potential “normal way to build data centers” within a decade, enabled by launch cost reductions.
SpaceX is uniquely positioned to make this reality. The company recently filed with the FCC to launch up to one million satellites dedicated to orbital data centers at altitudes between 500 and 2,000 kilometers, projecting capacity for 100 gigawatts of AI compute.
These talks align with SpaceX’s broader ambitions, including a potential IPO where orbital infrastructure features prominently in investor pitches.
FCC accepts SpaceX filing for 1 million orbital data center plan
Challenges remain formidable, as is expected with a project with expectations so lofty. Radiation-hardened hardware, laser-based inter-satellite and Earth-downlink communications, launch economics, and orbital debris management are key hurdles.
Yet early movers like Starcloud (which trained the first large language model in orbit in late 2025) and Google’s prototypes signal accelerating momentum. Rivals, including Amazon and Blue Origin, are exploring similar paths, but SpaceX’s Starship and Starlink heritage give it a launch cadence edge.
This partnership could redefine AI infrastructure, turning the skies into the next data center frontier. As Earth’s power limits loom, Musk’s vision, combined with Google’s ambition, could position space not as sci-fi, but as the scalable solution for humanity’s computational future.
Investor's Corner
Legendary investor Ron Baron says Tesla and SpaceX stock buys will continue
In a wide-ranging appearance on CNBC’s Squawk Box on May 12, legendary investor Ron Baron, founder, CEO, and portfolio manager of Baron Capital, reaffirmed his deep conviction in Elon Musk’s two flagship companies.
Legendary investor Ron Baron says he will continue buying stock of both Tesla and SpaceX, as he continues his support behind CEO Elon Musk, who he says is a special person and “brilliant.”
In a wide-ranging appearance on CNBC’s Squawk Box on May 12, legendary investor Ron Baron, founder, CEO, and portfolio manager of Baron Capital, reaffirmed his deep conviction in Elon Musk’s two flagship companies.
With assets under management approaching $55–56 billion, Baron detailed his firm’s substantial holdings, outlined plans for the anticipated SpaceX IPO, and painted an exceptionally optimistic picture for both Tesla (NASDAQ: TSLA) and SpaceX, framing them as generational opportunities that will reshape industries and deliver extraordinary long-term returns.
Baron Capital’s position in SpaceX has grown dramatically since the firm began investing around 2017. What started as roughly $1.7 billion has ballooned to more than $15 billion, making it the firm’s largest holding.
Tesla ranks second, valued at approximately $5 billion in the portfolio. Together with stakes in xAI and related Musk-led ventures, these investments account for roughly one-third of Baron Capital’s $60 billion in lifetime profits since 1992. Baron emphasized that the growth stems from Musk’s singular ability to execute ambitious visions—from reusable rockets to global satellite internet and beyond.
The centerpiece of the discussion was SpaceX’s expected initial public offering, targeted for mid-2026 following a confidential S-1 filing. Baron announced plans to purchase an additional $1 billion in shares at the IPO.
Ron Baron said today that he plans on buying an additional $1 billion of SpaceX stock during the upcoming IPO:
“At the IPO price, I’ve got an order for $1 billion. I want to buy more stock at the IPO. I don’t know if we’re going to get filled, but we’re going to try. I believe… pic.twitter.com/KOv1HvYcZ0
— Sawyer Merritt (@SawyerMerritt) May 12, 2026
He described the company’s trajectory in sweeping terms: “This is going to become the largest company on the planet.”
He highlighted Starlink’s expansion of high-speed internet to every corner of the globe, the revolutionary economics of reusable rockets, and Starship’s potential to enable massive space-based data centers and interplanetary infrastructure.
Baron sees SpaceX not merely as a rocket company but as a platform poised for exponential scaling once it goes public, with post-IPO appreciation potentially reaching 10- to 20- or even 30-times current levels over the next decade or more.
On Tesla, Baron struck an equally enthusiastic note, declaring that “now is Tesla’s moment.” He projected the stock could reach $2,000 to $2,500 per share within 10 years—implying a market capitalization near $8.3 trillion and roughly 5–6 times upside from recent levels. While Tesla remains a major holding, Baron’s optimism centers on its evolution beyond electric vehicles into an AI, robotics, autonomous-driving, and energy platform.
He pointed to robotaxis, Full Self-Driving (FSD) technology, Optimus humanoid robots, energy storage, and the vast real-world data advantage from Tesla’s global fleet as catalysts that will fundamentally alter the company’s revenue model and valuation multiples. Baron views these developments as transformative, shifting Tesla from a traditional automaker to a high-margin technology and infrastructure powerhouse.
Throughout the interview, Baron’s admiration for Musk was unmistakable. He has likened the entrepreneur to a modern Leonardo da Vinci for his artistic, multidisciplinary approach to solving humanity’s biggest challenges.
Baron’s personal commitment mirrors this confidence: he has repeatedly stated he does not expect to sell a single share of his own Tesla or SpaceX holdings in his lifetime, positioning himself as the “last one out” after his clients. This stance underscores a philosophy of patient, long-term ownership rather than short-term trading.
Baron’s comments arrive at a time of heightened anticipation around SpaceX’s public debut, which could rank among the largest IPOs in history and potentially value the company at $1.5–2 trillion or more at listing.
For investors, his message is clear: the Musk ecosystem—spanning electric vehicles, autonomy, robotics, satellite communications, and space exploration—represents one of the most compelling secular growth stories of the era. While short-term volatility in tech and EV stocks may persist, Baron sees these as buying opportunities for those who share his multi-decade horizon.
In summarizing his outlook, Baron reinforced that the combination of technological breakthroughs, massive addressable markets, and Musk’s leadership creates asymmetric upside that few other investments can match.
For Baron Capital’s clients and long-term Tesla and SpaceX shareholders alike, the investor’s latest CNBC remarks serve as both validation and a call to remain patient through the inevitable ups and downs. As Baron sees it, the best days for both companies—and the returns they can deliver—are still ahead.
Elon Musk
Trump’s invite for Elon just reshuffled Tesla’s big Signature Delivery Event
Tesla rescheduled its final Model S farewell to May 20 after Musk joined Trump in China.
Tesla has rescheduled its Model S and Model X Signature Edition delivery event to Wednesday, May 20, 2026, after abruptly calling off the original May 12 celebration. The event will take place at Tesla’s factory at 45500 Fremont Boulevard in Fremont, California, the same location where the Model S first rolled off the line in 2012. Invitees received a follow-up email asking them to reconfirm attendance and download a new QR code ticket, with Tesla noting that all travel and accommodation expenses remain the buyer’s responsibility.
The reason behind the original cancellation came into focus the same day it was announced. President Trump invited Elon Musk, Apple’s Tim Cook, BlackRock’s Larry Fink, Boeing’s Kelly Ortberg, and executives from Goldman Sachs, Blackstone, Citigroup, and Meta to join his trip to China this week for a summit with President Xi Jinping. The agenda covers trade, artificial intelligence, export controls, Taiwan, and the Iran war, following weeks of escalating friction between Washington and Beijing over AI technology, sanctions, and rare earth exports. Trump wrote on Truth Social, “I am very much looking forward to my trip to China, an amazing Country, with a Leader, President Xi, respected by all.”
Tesla launches 200mph Model S “Gold” Signature in invite-only purchase
The vehicles at the center of all this are the last Model S and Model X units Tesla will ever build. Priced at $159,420 each, the 250 Model S and 100 Model X Signature Edition units come finished in Garnet Red with a one-year no-resale agreement, giving Tesla right of first refusal if the owner decides to sell. As Teslarati reported, the Model S defined Tesla’s early identity as a serious luxury automaker, and the Fremont factory line that built it is now being converted to manufacture Optimus humanoid robots.
Musk’s inclusion in the China delegation drew attention given his very public relationship with Trump, and the invitation signals the two have moved past and past grievances. Trump originally brought Musk on to lead the Department of Government Efficiency following his inauguration, and despite a sharp public dispute in mid-2025, the two have appeared together repeatedly in recent months. A seat on the China trip, the most diplomatically consequential visit of Trump’s current term, puts Musk back at the table on U.S. economic policy at a moment when Tesla’s China revenue remains one of the company’s most important financial pillars.