Rivian is now in discussions about a new incentive arrangement with the state of Illinois, after the electric vehicle (EV) maker unveiled its upcoming R2 SUV earlier this week, now set to be built within the state.
During the automaker’s unveiling of the highly anticipated R2 on Thursday, Rivian said it would start producing the forthcoming SUV at its factory in Normal, Illinois, rather than following initial plans to produce the EV at a future plant in Georgia. Rivian is also pausing construction on the new factory, set to be located outside of Atlanta, in hopes to focus instead on achieving profitability with the upcoming R2, R3 and R3X EVs.
In a statement on Tuesday, the Illinois Department of Commerce and Economic Opportunity (DCEO) referenced the plans for a new incentives package, saying that it would share details upon finalizing certain parts of the proposal.
Tesla Lead Engineer urges Rivian to optimize R2 for existing Supercharger Network
“The elements of an economic development package are still being finalized,” the DCEO said (via Automotive News). “Once they are finalized, we will update the public on the details of the incentive package.”
-->Deliveries of the R2 are expected to begin in 2026, and the company says the change of plans to produce the R2 at its currently operational Normal facility will help it get the $45,000 SUV on the market sooner. Meanwhile, plans and construction for the Georgia plant are delayed indefinitely.
“Once again, Rivian has reaffirmed the message that Illinois is one of the best places to do business in the country,” DCEO added. “We stand by Rivian and stand ready to support them as they increase capacity at their Bloomington-Normal facility to rollout the R2.”
Rivian has already created more than 8,000 jobs in Illinois, and with the future of the Georgia plant now unclear, the former state has a chance to scoop up additional employment opportunities as the industry turns toward EVs. Still, it isn’t clear whether Rivian plans to expand its Normal factory to accommodate the R2 line or re-tool production lines to increase output, nor is it clear if the addition will add more jobs.
"Ultimately, Rivian exists to not only help transition the world away from combustion fuels and into electrification — we exist to help generate amazing memories in the process of doing so. These vehicles represent our future — what we've been building to with the R1 products and… pic.twitter.com/EW4K43yNHH
— Rivian (@Rivian) March 9, 2024
-->CEO RJ Scaringe says he expects launching the R2 at its Normal production facility could save the company almost $2.3 billion, after the automaker posted an operating loss of $5.7 billion in 2023.
“Just as we were faced with incredibly daunting challenges during the launch of our flagship R1 product line — ramping production in the throes of a global pandemic amid an unprecedented supply chain crisis — we are applying those same lessons today,” Scaringe wrote in a recent statement. “Historically high interest rates and geopolitical uncertainty are affecting everyone, and we must adjust and stay ahead of those situations.”
Beyond unveiling the expected R2 earlier this week, Rivian also surprised the world by unveiling designs for new compact crossover EVs, dubbed the R3 and R3X. The automaker didn’t share a price or production timeline for the crossovers, though it did say both EV lineups will offer three configurations: single-motor, dual-motor and tri-motor trims. Rivian also says the EVs will have DC fast-charging capabilities, featuring both an NACS and CCS charging option.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
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News
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Tesla’s Full Self-Driving (Supervised) program is accelerating across Europe, with Spain emerging as a key testing hub under the country’s new ES-AV framework program.
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Spain’s ES-AV framework
Spain’s DGT launched the ES-AV Program in July 2025 to standardize testing for automated vehicles from prototypes to pre-homologation stages. The DGT described the purpose of the program on its official website.
“The program is designed to complement and enhance oversight, regulation, research, and transparency efforts, as well as to support innovation and advancements in automotive technology and industry. This framework also aims to capitalize on the opportunity to position Spain as a pioneer and leader in automated vehicle technology, seeking to provide solutions that help overcome or alleviate certain shortcomings or negative externalities of the current transportation system,” the DGT wrote.
The program identifies three testing phases based on technological maturity and the scope of a company’s operations. Each phase has a set of minimum eligibility requirements, and applicants must indicate which phase they wish to participate in, at least based on their specific technological development.
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Tesla FSD tests
As noted by Tesla watcher Kees Roelandschap on X, the DGT’s new framework effectively gives the green flight for nationwide FSD testing. So far, Tesla Spain has a total of 19 vehicles authorized to test FSD on the country’s roads, though it would not be surprising if this fleet grows in the coming months.
The start date for the program is listed at November 27, 2025 to November 26, 2027. The DGT also noted that unlimited FSD tests could be done across Spain on any national route. And since Tesla is already in Phase 3 of the ES-AV Program, onboard safety operators are optional. Remote monitoring would also be allowed.
Tesla’s FSD tests in Spain could help the company gain a lot of real-world data on the country’s roads. Considering the scope of tests that are allowed for the electric vehicle maker, it seems like Spain would be one of the European countries that would be friendly to FSD’s operations. So far, Tesla’s FSD push in Europe is notable, with the company holding FSD demonstrations in Germany, France, and Italy. Tesla is also pushing for national approval in the Netherlands in early 2026.
News
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise.
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise for its smoother performance and smarter decision-making.
Videos and firsthand accounts from Tesla owners highlight V14.2.1 as an update that improves navigation responsiveness, sign recognition, and overall fluidity, among other things. Some drivers have even described it as “more alive than ever,” hinting at the system eventually feeling “sentient,” as Elon Musk has predicted.
FSD V14.2.1 first impressions
Early adopters are buzzing about how V14.2.1 feels less intrusive while staying vigilant. In a post shared on X, Tesla owner @LactoseLunatic described the update as a “huge leap forward,” adding that the system remains “incredibly assertive but still safe.”
Another Tesla driver, Devin Olsenn, who logged ~600 km on V14.2.1, reported no safety disengagements, with the car feeling “more alive than ever.” The Tesla owner noted that his wife now defaults to using FSD V14, as the system is already very smooth and refined.
Adverse weather and regulatory zones are testing grounds where V14.2.1 shines, at least according to testers in snow areas. Tesla watcher Sawyer Merritt shared a video of his first snowy drive on unplowed rural roads in New Hampshire, where FSD did great and erred on the side of caution. As per Merritt, FSD V14.2.1 was “extra cautious” but it performed well overall.
-->Sign recognition and freeway prowess
Sign recognition also seemed to show improvements with FSD V14.2.1. Longtime FSD tester Chuck Cook highlighted a clip from his upcoming first-impressions video, showcasing improved school zone behavior. “I think it read the signs better,” he observed, though in standard mode, it didn’t fully drop to 15 mph within the short timeframe. This nuance points to V14.2.1’s growing awareness of temporal rules, a step toward fewer false positives in dynamic environments.
FSD V14.2.1 also seems to excel in high-stress highway scenarios. Fellow FSD tester @BLKMDL3 posted a video of FSD V14.2.1 managing a multi-lane freeway closure due to a police chase-related accident. “Perfectly handles all lanes of the freeway merging into one,” the Tesla owner noted in his post on X.
FSD V14.2.1 was released on Thanksgiving, much to the pleasant surprise of Tesla owners. The update’s release notes are almost identical to the system’s previous iteration, save for one line item read, “Camera visibility can lead to increased attention monitoring sensitivity.”
News
Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
