One of Rivian’s former suppliers is currently suing the electric vehicle (EV) maker, claiming that it failed to pay a reimbursement clause for cancellations on a contract for electric motors.
Rivian last year moved to bring the production of its EV motors in-house, effectively cancelling a supply deal with Bosch after claiming the supplier had “reckless failures” in delivering the number of motors needed. Now, Bosch is claiming that Rivian refused to pay $204 million in reimbursements for the cancelled plans, leaving the company with significant stranded capital and a hole in revenue (via Automotive News).
Bosch sued Rivian in July for breaching the contract, and the automaker immediately followed up with a lawsuit of its own against the supplier. In its countersuit, Rivian blamed Bosch for production shortages and said that the company’s failure to deliver on the electric motors deal had resulted in a 30,000-unit drop in planned production output.
As part of the partnership, Bosch invested millions of dollars into tooling a factory in Germany, where it first produced the e-motors for Rivian. The company also built a 30,000-square-foot production line at its plant in South Carolina to help produce the units.
“Given these significant investments and that Rivian was an electric vehicle startup that had never manufactured vehicles before, Rivian contracted to reimburse Bosch for all its unamortized costs should Rivian cancel the program early,” Bosch said in the lawsuit.
Bosch was initially contracted to build 200,000 motors for Rivian this year, though the automaker officially cancelled the contract last September. In the suit, Bosch claims that Rivian had “secretly” been planning to replace the supply with its own Enduro e-motor system, despite having told Bosch that the two would be used in tandem.
The company also says that Rivian’s production issues have been related to semiconductor shortages, rather than those of its e-motors.
“While Rivian’s choice to cut costs and develop a new product may be understandable, Rivian cannot simply ignore its contractual duties to reimburse Bosch,” the company adds.
Rivian and Bosch both declined to comment on the legal efforts in a statement to Automotive News affiliates at Crain’s Detroit Business.
Despite cancelling the order, Rivian has struggled with production of the motors in its own right, with the company earlier this month reducing its production guidance by 8,000 to 10,000 units to instead aim for between 47,000 and 49,000 this year. The automaker cited an increasingly difficult parts shortage that had been affecting its production of both its R1 and van units.
In August, Rivian alluded to a similar parts shortage that caused it to pause van production. It’s unclear if the two shortages are related, as in both cases, Rivian did not respond to Teslarati’s requests for comment or disclose what components were having supply issues.
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.
Investor's Corner
Tesla Optimus is already benefiting investors, top Wall Street firm says
Piper Sandler has updated its detailed valuation model for Tesla (NASDAQ: TSLA), concluding that at recent share prices around $400–$420, investors are essentially acquiring the company’s ambitious Optimus humanoid robot project at no extra cost.
Tesla Optimus is already benefiting investors from a fiscal standpoint, at least that is what Alexander Potter at Piper Sandler, a top Wall Street firm covering the company, says.
Piper Sandler has updated its detailed valuation model for Tesla (NASDAQ: TSLA), concluding that at recent share prices around $400–$420, investors are essentially acquiring the company’s ambitious Optimus humanoid robot project at no extra cost.
Analyst Alexander Potter, in the firm’s latest “Definitive Guide to Investing in Tesla,” built a comprehensive framework covering 17 separate product lines.
This granular approach values Tesla’s core businesses—including electric vehicles, energy storage, Full Self-Driving (FSD) software, in-house insurance, Supercharging network, and a standalone robotaxi operation—at approximately $400 per share, without assigning any value to Optimus or related inference-as-a-service opportunities.
“At $400/share, we think investors can buy Optimus for ‘free,’” Potter stated in the note. Piper Sandler maintained its Overweight rating on Tesla shares and a $500 price target, which implicitly attributes roughly $100 per share to the robot-related businesses— a figure the analyst views as potentially conservative.
The updated model incorporates elements often overlooked by other sell-side analysts, such as detailed forecasts for Tesla’s insurance operations, Supercharger revenue, and a distinct valuation for the robotaxi business separate from FSD software licensing. It also accounts for Tesla’s 2025 CEO compensation plan for the first time.
Potter acknowledged that his estimates for 2026 and 2027 fall below Wall Street consensus, citing factors like declining deliveries from certain discontinued models and reduced regulatory credit income.
However, he expressed limited concern, noting that traditional vehicle delivery metrics are expected to matter less over time as FSD subscriber growth and robotaxi deployment metrics gain prominence. On Optimus specifically, Potter suggested the humanoid robot program, combined with inference services, “arguably will be worth more than Tesla’s other businesses combined,” though the firm has not yet produced formal long-term forecasts for these segments.
Tesla shares have traded near the $400 range in recent sessions, reflecting ongoing investor focus on the company’s autonomous driving progress and expansion into robotics and AI. The Optimus project remains in early development stages, with Tesla aiming to deploy the robots initially for internal factory tasks before broader commercial applications.
This Piper Sandler analysis highlights the growing emphasis among some investors and analysts on Tesla’s long-term technology platform potential beyond its current automotive and energy businesses.
As with any forward-looking valuation, outcomes will depend on execution timelines, technological breakthroughs, regulatory approvals for autonomous systems, and market adoption of humanoid robotics—areas that carry significant uncertainty and execution risk.
The note underscores a common theme in Tesla coverage: differing views on how to quantify emerging high-growth opportunities like robotics within the company’s overall enterprise value. Investors are advised to consider their own risk tolerance and conduct thorough due diligence regarding these speculative elements.
News
Tesla Giga Texas buzzing as new Cybertruck appears to enter production
Additionally, the Cybercab manufacturing ramp-up is continuing amidst Tesla’s busy May, which includes a handful of things from an automotive perspective.
Tesla Giga Texas is buzzing with a lot of action, as it appears the new Cybertruck trim that was offered a few months back has entered production. Additionally, the Cybercab manufacturing ramp-up is continuing amidst Tesla’s busy May, which includes a handful of things from an automotive perspective.
Drone operator Joe Tegtmeyer captured striking footage over Giga Texas on the morning of May 11, 2026, revealing fresh batches of Cybertrucks that may mark the start of series production for the long-awaited $59,990 Dual Motor AWD variant.
Tesla launches new Cybertruck trim with more features than ever for a low price
The vehicles lined up in staging areas, and we got a great look at three of the units parked on the property:
Hard to say for sure, but production of the $59K AWD @Cybertruck may be just getting started here on this early and soggy morning at Giga Texas … this version is much harder to visually distinguish from the premium AWD versions, so I’ll come back on Wednesday and we’ll see if… pic.twitter.com/UX7yCQpgeC
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 11, 2026
Tegtmeyer notes the difficulty in visually distinguishing this base AWD model from higher-trim versions, unlike the earlier Long-Range RWD that lacked a motorized tonneau cover.
Tesla launched the $59,990 Dual Motor AWD Cybertruck in late February 2026 with a brief introductory pricing window that closed by month’s end.
Initial U.S. delivery estimates of June 2026 quickly slipped to September–October and, for newer orders, as far as April 2027.
The move underscores robust consumer interest in a more accessible all-wheel-drive Cybertruck priced under $60,000 before incentives—positioning it as a volume play for Tesla’s electric pickup lineup while premium AWD and Cyberbeast variants continue to be sold as usual.
Meanwhile, Cybercab production at the same Austin facility shows steady, if deliberate, progress. Tegtmeyer’s latest flyover documented dozens of glossy production-spec Cybercabs parked in the outbound lot—consistent with Tesla’s early statements that initial output would remain modest before scaling later in 2026.
The purpose-built robotaxi, unveiled in 2024 and lacking a steering wheel or pedals, rolled its first unit off the line in February. Volume manufacturing began in April, with early examples already undergoing autonomous testing around the factory grounds.
Elon Musk has repeatedly emphasized that Cybercab and Semi production will start slowly before ramping “exponentially” toward year-end. The presence of multiple finished units signals Tesla’s Unboxed manufacturing process is maturing, even as the company balances Cybertruck output with autonomy milestones.
Recent drone imagery also shows ongoing construction for Optimus and test-track expansions, highlighting Giga Texas’s evolving role as Tesla’s hub for next-generation vehicles.
For Cybertruck buyers, the potential ramp of the $59K AWD offers hope of shorter waits and broader market access. For autonomy enthusiasts, the growing fleet of Cybercabs hints at robotaxi service trials on the horizon.
While official confirmation from Tesla remains pending, Tegtmeyer’s footage provides the clearest public signal yet that both programs are advancing in parallel at Giga Texas.
News
Tesla Full Self-Driving gains momentum in Europe with new country mulling approval
Tesla is advancing FSD’s technology across Europe with fresh talks underway in Ireland, signaling broader regulatory progress. On May 10, Ireland’s Department of Transport confirmed that Tesla is actively engaging with national authorities, including the National Standards Authority of Ireland (NSAI) to secure approval for FSD Supervised.
Tesla Full Self Driving (FSD) technology is gaining momentum in Europe, with yet another new country mulling a potential approval for operation on its roads.
Tesla is advancing FSD’s technology across Europe with fresh talks underway in Ireland, signaling broader regulatory progress. On May 10, Ireland’s Department of Transport confirmed that Tesla is actively engaging with national authorities, including the National Standards Authority of Ireland (NSAI) to secure approval for FSD Supervised.
While the department noted that full rollout in Ireland would ultimately depend on EU-level clearance, the engagement marks a notable step forward in Tesla’s European expansion strategy, Irish media outlet RTE said.
The news comes on the heels of a landmark breakthrough in the Netherlands. In April, Dutch vehicle authority RDW granted the first-ever EU type approval for FSD Supervised after 18 months of rigorous testing on public roads and tracks. The provisional approval allows the system on all Dutch roads, with Tesla already rolling it out to select owners following mandatory safety training.
The Netherlands has since notified the European Commission and is advocating for wider recognition, positioning the Dutch decision as a potential template for the bloc.
Europe has long lagged behind the United States, China, and other markets where FSD is more widely available. Strict EU regulations on automated driving systems have required extensive validation, but momentum is building.
Tesla now lists the Netherlands alongside established markets such as the U.S., Canada, Australia, and South Korea on its regional FSD page. Other countries, including Belgium, are reportedly fast-tracking their own review processes in response to the Dutch precedent.
Analysts see Ireland’s involvement as strategic. As a smaller EU member with unique road challenges—narrow rural lanes, hedgerows, and variable weather—successful validation there could demonstrate FSD’s adaptability and strengthen the case for harmonized EU approval.
Tesla has indicated it aims for broader EU deployment as early as summer 2026, though the timeline remains fluid. Discussions at the EU’s Technical Committee on Motor Vehicles continue, with a possible vote later in the year. Some member states, particularly in Scandinavia, have expressed reservations over edge cases like speeding protocols and long-term safety data.
For Tesla, European expansion is more than a software update; it unlocks significant growth. The continent’s dense population and high vehicle ownership could accelerate data collection, refine the AI models powering FSD, and pave the way for unsupervised autonomy and robotaxi services.
Owners stand to benefit from enhanced safety features and reduced driver fatigue, while regulators weigh innovation against proven risk reduction. Early Dutch results already cite safety improvements:
Tesla Full Self-Driving shows stunning maneuver in Europe to silence skeptics
But the work is far from done, and challenges are still present. FSD Supervised still requires driver attention and a readiness to intervene. EU rules emphasize that the technology is not fully autonomous, placing legal responsibility on the human operator. Tesla must also navigate varying national road conditions and public perception.
Nevertheless, the Ireland talks underscore a clear trajectory: one national approval at a time, Europe is inching closer to widespread FSD access. If the Dutch model gains traction, Summer 2026 could mark the beginning of a transformative chapter for autonomous driving on European roads.
Tesla’s persistent engagement with regulators is starting to pay off, and it suggests the company is still heavily committed to the expansion efforts across Europe, despite the red tape it has had to persist through.
Tesla Optimus is already benefiting investors, top Wall Street firm says
Tesla Giga Texas buzzing as new Cybertruck appears to enter production
