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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.
Elon Musk
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.
Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”
Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.
As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.
Investor's Corner
Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
News
SpaceX is following in Tesla’s footsteps in a way nobody expected
In the span of just months in early 2026, SpaceX has transformed itself into one of the world’s most ambitious AI companies. The catalyst: its February acquisition of xAI.
When Elon Musk founded Tesla in 2003, it was a plucky electric car startup betting everything on lithium-ion batteries and a niche luxury Roadster.
Two decades later, Tesla is far more than a car company. Its valuation increasingly hinges on Full Self-Driving software, the Optimus humanoid robot, the Robotaxi program, and the Dojo supercomputer cluster purpose-built for AI training.
Musk has repeatedly described Tesla as an AI and robotics company that happens to sell vehicles. The cars, in this view, are merely the first scalable platform for real-world AI.
Now, SpaceX is tracing an eerily similar path, only faster and in a direction almost no one anticipated. Founded in 2002 to make spaceflight routine and eventually multiplanetary, SpaceX spent its first two decades perfecting reusable rockets, landing Falcon 9 boosters, and building the Starlink megaconstellation.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
It was an engineering and manufacturing powerhouse, not a software play. Yet, in the span of just months in early 2026, SpaceX has transformed itself into one of the world’s most ambitious AI companies. The catalyst: its February acquisition of xAI.
The xAI deal, announced on February 2, was structured as an all-stock transaction that valued the combined entity at roughly $1.25 trillion—SpaceX at $1 trillion and xAI at $250 billion. In a memo to employees, Musk framed the merger as the creation of “the most ambitious, vertically-integrated innovation engine on (and off) Earth.”
The new SpaceX now owns Grok, the large language model family that powers the chatbot of the same name, along with xAI’s massive training infrastructure. More importantly, it has a declared mission to move AI compute off-planet.
Earth-based data centers are hitting hard limits on power, cooling, and land. Musk’s solution is orbital data centers, or constellations of solar-powered satellites that act as supercomputers in the sky.
SpaceX has already asked regulators for permission to launch up to one million such satellites. Starship, the company’s fully reusable heavy-lift vehicle, is the only rocket capable of delivering the necessary mass at the required cadence.
Each orbital node would enjoy near-constant sunlight, vast radiator surfaces for passive cooling, and zero terrestrial real-estate costs. Musk has predicted that within two to three years, space-based AI inference and training could become cheaper than anything possible on the ground.
This is not a side project; it is the strategic centerpiece Musk has envisioned for SpaceX. Starlink already provides the global low-latency backbone; next-generation V3 satellites will carry onboard AI accelerators. Rockets deliver the hardware, while AI optimizes every aspect of launch, landing, and constellation management.
The feedback loop is self-reinforcing, too. Better AI makes better rockets, which launch more AI infrastructure.
Just yesterday, on April 21, SpaceX doubled down.
It secured an option to acquire Cursor—the fast-growing AI coding tool beloved by software engineers—for $60 billion later this year, or pay a $10 billion partnership fee if the full deal does not close.
Cursor’s models already help engineers write code at superhuman speed. Pairing that technology with SpaceX’s Colossus-scale training clusters (the same ones powering Grok) positions the company to dominate AI developer tools, much as Tesla dominates autonomous driving software.
Why SpaceX just made a $60 billion bet on AI coding ahead of historic IPO
The parallels with Tesla are striking. Both companies began in a single, capital-intensive sector: Tesla with EVs, SpaceX with launch vehicles. Both used early hardware success to fund AI at scale. Tesla’s Dojo supercomputers train neural nets on billions of miles of real-world driving data; SpaceX now trains on telemetry from thousands of orbital assets and re-entries.
Tesla’s FSD chip runs inference on cars; SpaceX’s future satellites will run inference in orbit.
Tesla’s Optimus robot will work in factories; SpaceX envisions lunar factories manufacturing more AI satellites, eventually using electromagnetic mass drivers to fling them into deep space.
Critics once dismissed Musk’s multi-company empire as unfocused. The 2026 moves reveal the opposite: deliberate convergence.
SpaceX is no longer merely a rocket company that sells internet from space. It is an AI company whose competitive moat is literal orbital infrastructure and the only vehicle that can service it at scale. The forthcoming IPO, expected later this year, will almost certainly be pitched not as a space play but as the purest bet on AI infrastructure the public market has ever seen.
Whether the orbital data-center vision survives regulatory scrutiny, astronomical concerns about light pollution, or the sheer engineering challenge remains to be seen.
Yet the strategic direction is unmistakable. Just as Tesla proved that software and AI could redefine the century-old automobile, SpaceX is proving that rockets are merely the delivery mechanism for the next great computing platform—one that floats above the clouds, powered by the sun, and limited only by the physics of orbit.
In that unexpected sense, history is repeating. Tesla stopped being “just a car company” years ago. SpaceX has now stopped being “just a rocket company.” Both are becoming something far larger: AI powerhouses with hardware moats so deep that competitors will need their own reusable megaconstellations to keep up.
The age of terrestrial AI is ending. The age of space-based AI is beginning—and SpaceX is building the launchpad.
