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.
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News
Tesla officially begins sunset of Model S and Model X
In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.
Tesla has officially started its process of sunsetting the Model S and Model X just months after the company confirmed it would stop producing the two flagship vehicles in 2026.
This step marks the end of an era for the vehicles that helped establish not only Tesla’s prowess as an automaker but also its status as a disruptor in the entire car industry. While these two cars have done a tremendous amount for Tesla, the signal that it is time to wind down their production has evidently arrived.
In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.
This is the first time Tesla has announced a hard global deadline for the Model S and X, as after that date, only existing inventory will be available in South Korea.
The move to bring closure to the Model S and Model X aligns with CEO Elon Musk’s plans for Tesla moving forward. During the Q4 2025 Earnings Call in January, Musk said the two cars deserved an “honorable discharge” for what they have done for the company.
The long-running programs are primarily being removed so that manufacturing lines can be repurposed for high-volume manufacturing of the Optimus humanoid robot. Tesla is targeting a production rate of up to one million units each year.
The Model S and Model X being removed from Tesla’s plans is a tough choice, but it was one that was written on the wall. Sales of these premium models have declined sharply in recent years, and even with Plaid configurations that are performance-forward, the company still has had trouble getting them sold.
In 2025, the Model S and Model X together accounted for roughly 3 percent of Tesla’s global deliveries, down significantly from prior periods as competition intensified in the luxury EV segment and buyers shifted toward more affordable options like the Model 3 and Model Y.
The Model S saw sales drop over 50 percent year-over-year in some quarters, while the Model X faced similar pressures from rivals, including the Rivian R1S and BMW iX.
Despite their dwindling volume, the Model S and Model X remain technological showcases. The Plaid variants deliver blistering acceleration, advanced Full Self-Driving capability, and luxurious interiors.
The phase-out paves the way for Tesla’s strategic pivot toward autonomy, robotics, and higher-volume vehicles.
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
Fremont will continue producing the refreshed Model 3 and Model Y, ensuring the factory remains a key automotive hub while expanding into robotics. Tesla has stated that the shift is not expected to result in job losses and could increase headcount as Optimus production ramps up.
For Tesla fans, the sunset represents a bittersweet moment. The Model S, introduced in 2012, proved EVs could compete with luxury sedans, while the Falcon-wing-door Model X set new standards for family haulers. Owners can expect continued software support and service for years to come.
Many fans have pushed for the Model X to hang around due to its appeal for families.
With the two cars heading out, Tesla’s priority now becomes its future products, especially that of the Optimus robot, which is the main reason for the S/X platform’s conclusion.
News
Tesla shows off mysterious vehicle at Giga Texas
The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.
Tesla seemingly showed off a mysterious vehicle at Giga Texas, one that seems to be completely different than anything the company currently makes for the U.S. market.
The vehicle, which was spotted on the plant’s property, appears to be similar to the Model Y L that has not yet launched in North America, and is currently built at Gigafactory Shanghai in China.
Drone pilot Joe Tegtmeyer captured intriguing footage at Tesla’s Giga Texas on March 23, 2026, revealing what appears to be a large, blue plastic-wrapped vehicle body resting inside a wooden shipping crate outdoors.
Well this is interesting at Giga Texas today … what do YOU think this is? 🤔😎 pic.twitter.com/U9pLvqbf7L
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) March 23, 2026
The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.
The images show an elongated silhouette that stands out from standard Model Y bodies. Side-by-side comparisons shared in replies to Tegtmeyer’s post highlight key differences: the rear door extends farther over the wheel arch than on a regular Model Y, and the rear glass appears to run all the way to the spoiler lip without the metal trim seen on shorter versions.
One overlay analysis noted that the visible proportions align precisely with the Chinese-market Model Y L, which measures approximately 4.98 meters long with a 3.04-meter wheelbase, which is about seven inches longer overall than the standard Model Y sold in the U.S.
Model Y L, with a support structure on top, likely for shipping. pic.twitter.com/ET3w46DjpJ
— Owen Sparks (@OwenSparks) March 23, 2026
The vehicle is a bare “body-in-white” shell, typical of prototypes sent abroad for tooling validation and local manufacturing ramp-up. Tesla has already launched the six- and seven-seat Model Y L in China and other markets, where it offers roughly 10% more cargo space and greater family-friendly versatility.
This sighting fits Tesla’s broader strategy. Industry observers expect the company to localize Model Y L production at Giga Texas by mid-2026 to serve American families seeking extra room without stepping up to the larger Cybertruck or a future full-size SUV.
Bringing the design stateside could add tens of thousands of annual deliveries while leveraging existing Model Y lines. People have been adamant that they want the Model Y L in the U.S., especially as Tesla plans to fade the Model X, the company’s most ideal vehicle for large families, out of production in the near future.
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
While Tesla has made no official comment, the timing, amid Giga Texas expansion and steady Model Y output, suggests the mysterious crate is more than a random prototype.
If confirmed as the Model Y L, it marks another step in Tesla’s effort to refresh its bestselling SUV for global demand. The vehicle would perform exceptionally well in the U.S., and despite the company’s rather mute stance on bringing it to America, this might be the biggest hint to date that it could be on the way.
Cybertruck
Tesla Cybertruck just won a rare and elusive crash safety honor
Only the most outstanding of performances in crash tests can warrant an IIHS Top Safety Pick+ award, as vehicles listed with that ranking must achieve “Good” ratings in the small overlap front, updated side, and updated moderate overlap front tests, along with “Acceptable” or “Good” headlights standard on all trims.
Tesla Cybertruck landed a rare and elusive safety honor from the Insurance Institute for Highway Safety (IIHS). It was the only pickup truck in the U.S. market to do so.
The IIHS rewarded the Cybertruck with the Top Safety Pick+ honors, the highest marks a vehicle can receive from the agency.
Only the most outstanding of performances in crash tests can warrant an IIHS Top Safety Pick+ award, as vehicles listed with that ranking must achieve “Good” ratings in the small overlap front, updated side, and updated moderate overlap front tests, along with “Acceptable” or “Good” headlights standard on all trims.
🚨 Absolutely insane.
Tesla Cybertruck was the ONLY pickup on the market to be awarded a Top Safety Pick+ rating by the IIHS
The safest rating out there belongs to Cybertruck 📐 pic.twitter.com/Y8gLOqaL0d
— TESLARATI (@Teslarati) March 24, 2026
Cybertruck was the only truck to also win an NHTSA Five-Star Safety rating, making it the only pickup available on the market to be recognized with top marks from both agencies.
There are a multitude of options for pickups in the U.S. market, as it is one of the most popular vehicle types for consumers in the country. Pickups are great vehicles for anyone who does any sort of hauling or is just looking for extra space for any variety of reasons.
Pickups are also inherently safer than other body types on the road, mostly because they are larger and heavier, making them more favorable against other vehicle types in the event of a collision. However, Tesla has a significant advantage in safety with its vehicles because it engineers them to not only be safer in collisions, but also easier to repair.
The Cybertruck managed to achieve “Good” ratings, the highest marks available by the IIHS, in all three Crashworthiness categories, as well as “Good” ratings in both Crash Avoidance and Mitigation assessments.
It also received “Good” ratings across all driver and pedestrian crash-test performance metrics, except for one, where it earned an “Acceptable” rating for rear passengers in the Chest category.
The Cybertruck’s outstanding crash test performance has won it this incredible mark as the pickup still tends to be one of the more polarizing vehicle designs on the market.
It is no secret that Tesla has struggled with demand of the Cybertruck due to pricing, but the recent rollout of a trim that was temporarily priced at just $59,990 showed plenty of people want the all-electric pickup.

