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Rivian in talks with Illinois about incentives ahead of R2 production

Credit: Rivian

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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.”

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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.

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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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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla aims to combat common Full Self-Driving problem with new patent

Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.

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Credit: @samsheffer | x

Tesla is aiming to combat a common Full Self-Driving problem with a new patent.

One issue with Tesla’s vision-based approach is that sunlight glare can become a troublesome element of everyday travel. Full Self-Driving is certainly an amazing technology, but there are still things Tesla is aiming to figure out with its development.

Unfortunately, it is extremely difficult to get around this issue, and even humans need ways to combat it when they’re driving, as we commonly use sunglasses or sun visors to give us better visibility.

Cameras obviously do not have these ways to fight sunglare, but a new patent Tesla recently had published aims to fight this through a “glare shield.”

Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.

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The ability to see surroundings is crucial for accurate performance, and glare is one element of interference that has yet to be confronted.

Tesla described the patent, which will utilize “a textured surface composed of an array of micro-cones, or cone-shaped formations, which serve to scatter incident light in various directions, thereby reducing glare and improving camera vision.”

The patent was first spotted by Not a Tesla App.

The design of the micro-cones is the first element of the puzzle to fight the excess glare. The patent says they are “optimized in size, angle, and orientation to minimize Total Hemispherical Reflectance (THR) and reflection penalty, enhancing the camera’s ability to accurately interpret visual data.”

Additionally, there is an electromechanical system for dynamic orientation adjustment, which will allow the micro-cones to move based on the angle of external light sources.

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This is not the only thing Tesla is mulling to resolve issues with sunlight glare, as it has also worked on two other ways to combat the problem. One thing the company has discussed is a direct photon count.

CEO Elon Musk said during the Q2 Earnings Call:

“We use an approach which is direct photon count. When you see a processed image, so the image that goes from the sort of photon counter — the silicon photon counter — that then goes through a digital signal processor or image signal processor, that’s normally what happens. And then the image that you see looks all washed out, because if you point the camera at the sun, the post-processing of the photon counting washes things out.”

Future Hardware iterations, like Hardware 5 and Hardware 6, could also integrate better solutions for the sunglare issue, such as neutral density filters or heated lenses, aiming to solve glare more effectively.

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Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package

The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price. 

The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.

Delaware Supreme Court makes a decision

In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”

The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.

A hard-fought victory

As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.

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The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.

Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez

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Tesla Cybercab tests are going on overdrive with production-ready units

Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.

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Credit: @JT59052914/X

Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.

Recent Cybercab sightings

Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.

The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.

Production design all but finalized?

Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.

There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious. 

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