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.
News
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
Tesla will expand its factory shuttle service in Germany beginning January 4, adding direct rail trips from Berlin Ostbahnhof to Giga Berlin-Brandenburg in Grünheide.
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
New shuttle route
As noted in a report from rbb24, the updated service, which will start January 4, will run between the Berlin Ostbahnhof East Station and the Erkner Station at the Gigafactory Berlin complex. Tesla stated that the timetable mirrors shift changes for the facility’s employees, and similar to before, the service will be completely free. The train will offer six direct trips per day as well.
“The service includes six daily trips, which also cover our shift times. The trains will run between Berlin Ostbahnhof (with a stop at Ostkreuz) and Erkner station to the Gigafactory,” Tesla Germany stated.
Even with construction continuing at Fangschleuse and Köpenick stations, the company said the route has been optimized to maintain a predictable 35-minute travel time. The update follows earlier phases of Tesla’s “Giga Train” program, which initially connected Erkner to the factory grounds before expanding to Berlin-Lichtenberg.
-->Tesla pushes for majority rail commuting
Tesla began production at Grünheide in March 2022, and the factory’s workforce has since grown to around 11,500 employees, with an estimated 60% commuting from Berlin. The facility produces the Model Y, Tesla’s best-selling vehicle, for both Germany and other territories.
The company has repeatedly emphasized its goal of having more than half its staff use public transportation rather than cars, positioning the shuttle as a key part of that initiative. In keeping with the factory’s sustainability focus, Tesla continues to allow even non-employees to ride the shuttle free of charge, making it a broader mobility option for the area.
News
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
-->Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
Elon Musk
Elon Musk reveals what will make Optimus’ ridiculous production targets feasible
Musk recent post suggests that Tesla has a plan to attain Optimus’ production goals.
Elon Musk subtly teased Tesla’s strategy to achieve Optimus’ insane production volume targets. The CEO has shared his predictions about Optimus’ volume, and they are so ambitious that one would mistake them for science fiction.
Musk’s recent post on X, however, suggests that Tesla has a plan to attain Optimus’ production goals.
The highest volume product
Elon Musk has been pretty clear about the idea of Optimus being Tesla’s highest-volume product. During the Tesla 2025 Annual Shareholder Meeting, Musk stated that the humanoid robot will see “the fastest production ramp of any product of any large complex manufactured product ever,” starting with a one-million-per-year line at the Fremont Factory.
Following this, Musk stated that Giga Texas will receive a 10 million-per-year unit Optimus line. But even at this level, the Optimus ramp is just beginning, as the production of the humanoid robot will only accelerate from there. At some point, the CEO stated that a Mars location could even have a 100 million-unit-per-year production line, resulting in up to a billion Optimus robots being produced per year.
Self-replication is key
During the weekend, Musk posted a short message that hinted at Tesla’s Optimus strategy. “Optimus will be the Von Neumann probe,” the CEO wrote in his post. This short comment suggests that Tesla will not be relying on traditional production systems to make Optimus. The company probably won’t even hire humans to produce the humanoid robot at one point. Instead, Optimus robots could simply produce other Optimus robots, allowing them to self-replicate.
-->The Von Neumann is a hypothetical self-replicating spacecraft proposed by the mathematician and physicist John von Neumann in the 1940s–1950s. The hypothetical machine in the concept would be able to travel to a new star system or location, land, mine, and extract raw materials from planets, asteroids, and moons as needed, use those materials to manufacture copies of itself, and launch the new copies toward other star systems.
If Optimus could pull off this ambitious target, the humanoid robot would indeed be the highest volume product ever created. It could, as Musk predicted, really change the world.
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
