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Rivian and Mercedes-Benz sign agreement to produce large electric vans in Europe

Credit: Mercedes-Benz

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Rivian and Mercedes-Benz have announced that they have signed a Memorandum of Understanding for a strategic partnership that would enable the production of large electric vans. The all-electric vans that will be produced from the joint venture are expected to be built in a factory in Europe that will start operations in a few years.

As noted in a press release, the strategic partnership between Rivian and Mercedes-Benz would allow the companies to “leverage shared investments, shared costs, and pursue operational synergies to rapidly scale electric van production.” The joint venture, however, is still subject to the parties entering into final binding agreements and obtaining relevant clearances.

The joint venture would leverage an existing Mercedes-Benz site in Central/Eastern Europe. Two large vans are expected o be produced from the joint venture — one that is based on Mercedes-Benz’s VAN.EA (MB Vans Electric Architecture) and another that is based on the Rivian Light Van (RLV) platform. Further options for more synergies will be explored by the companies later on.

Since both Rivian and Mercedes-Benz are looking to rapidly ramp and scale their respective electric van programs, the recently announced joint venture makes sense. Rivian CEO RJ Scaringe, for one, noted that the joint venture would allow both Rivian and Mercedes-Benz to produce vehicles that benefit customers and the planet as a whole.

“Rivian was created to encourage the world to transition away from fossil fuel consumption by creating compelling products and services. We’re delighted to be partnering with Mercedes-Benz on this project. Mercedes‑Benz is one of the world’s best known and respected automotive companies, and we believe that together we will produce truly remarkable electric vans which will not only benefit our customers, but the planet,” Scaringe said.

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Mercedes-Benz Vans Head Mathias Geisen also shared his excitement for the joint venture with Rivian.

“As a pioneer in the field of locally emission-free transportation Mercedes-Benz Vans has gained broad experience in producing and launching eVans since 2010. Now we are accelerating the transformation to a fully electric product portfolio. From 2025 onwards, all vans based on our new architecture VAN.EA will be electric-only.

“I am delighted that as part of this transformation we are now joining forces with Rivian – a highly dynamic and inspiring partner with a strong technology position. We are sharing investments and technology because we also share the same strategic ambition: accelerating the electrification of the van market with sustainable and superior products for our customers,” he said.

The full press release of Rivian and Mercedes-Benz’s joint venture can be viewed below.

Pi Mercedes Benz Vans and Rivian Move Partner Electric Van Production by Simon Alvarez on Scribd

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Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla is seeing a lot of momentum from young Koreans in their 20s-30s: report

From January to November, young buyers purchased over 21,000 Teslas, putting it far ahead of fellow imported rivals like BMW and Mercedes-Benz.

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Tesla has captured the hearts of South Korea’s 20s-30s demographic, emerging as the group’s top-selling imported car brand in 2025. From January to November, young buyers purchased over 21,000 Teslas, putting it far ahead of fellow imported rivals like BMW and Mercedes-Benz. 

Industry experts cited by The Economist attributed this “Tesla frenzy” to fandom culture, where buyers prioritize the brand over traditional car attributes, similar to snapping up the latest iPhone.

Model Y dominates among young buyers

Data from the Korea Imported Automobile Association showed that Tesla sold 21,757 vehicles to the 20s-30s demographic through November, compared to BMW’s 13,666 and Mercedes-Benz’s 6,983. The Model Y led the list overwhelmingly, with variants like the standard and Long Range models topping purchases for both young men and women.

Young men bought around 16,000 Teslas, mostly Model Y (over 15,000 units), followed by Model 3. Young women followed a similar pattern, favoring Model Y (3,888 units) and Model 3 (1,083 units). The Cybertruck saw minimal sales in this group.

The Model Y’s appeal lies in its family-friendly SUV design, 400-500 km range, quick acceleration, and spacious cargo, which is ideal for commuting and leisure. The Model 3, on the other hand, serves as an accessible entry point with lower pricing, which is valuable considering the country’s EV subsidies.

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The Tesla boom

Experts described Tesla’s popularity as “fandom culture,” where young buyers embrace the brand despite criticisms from skeptics. Professor Lee Ho-geun called Tesla a “typical early adopter brand,” comparing purchases to iPhones.

Professor Kim Pil-soo noted that young people view Tesla more as a gadget than a car, and they are likely drawn by marketing, subsidies, and perceived value. They also tend to overlook news of numerous recalls, which are mostly over-the-air software updates, and controversies tied to the company.

Tesla’s position as Korea’s top import for 2025 seems secured. As noted by the publication, Tesla’s December sales figures have not been reported yet, but market analysts have suggested that Tesla has all but secured the top spot among the country’s imported cars this year. 

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Tesla FSD fleet is nearing 7 billion total miles, including 2.5 billion city miles

As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles.

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Tesla’s Full Self-Driving (Supervised) fleet is closing in on almost 7 billion total miles driven, as per data posted by the company on its official FSD webpage. 

These figures hint at the massive scale of data fueling Tesla’s rapid FSD improvements, which have been quite notable as of late.

FSD mileage milestones

As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles. Tesla owner and avid FSD tester Whole Mars Catalog also shared a screenshot indicating that from the nearly 7 billion miles traveled by the FSD fleet, more than 2.5 billion miles were driven inside cities. 

City miles are particularly valuable for complex urban scenarios like unprotected turns, pedestrian interactions, and traffic lights. This is also the difference-maker for FSD, as only complex solutions, such as Waymo’s self-driving taxis, operate similarly on inner-city streets. And even then, incidents such as the San Francisco blackouts have proven challenging for sensor-rich vehicles like Waymos. 

Tesla’s data edge

Tesla has a number of advantages in the autonomous vehicle sector, one of which is the size of its fleet and the number of vehicles training FSD on real-world roads. Tesla’s nearly 7 billion FSD miles then allow the company to roll out updates that make its vehicles behave like they are being driven by experienced drivers, even if they are operating on their own. 

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So notable are Tesla’s improvements to FSD that NVIDIA Director of Robotics Jim Fan, after experiencing FSD v14, noted that the system is the first AI that passes what he described as a “Physical Turing Test.” 

“Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies,” Fan wrote in a post on X. 

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Tesla starts showing how FSD will change lives in Europe

Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.

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Credit: Grok Imagine

Tesla has launched Europe’s first public shuttle service using Full Self-Driving (Supervised) in the rural Eifelkreis Bitburg-Prüm region of Germany, demonstrating how the technology can restore independence and mobility for people who struggle with limited transport options. 

Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.

Officials see real impact on rural residents

Arzfeld Mayor Johannes Kuhl and District Administrator Andreas Kruppert personally tested the Tesla shuttle service. This allowed them to see just how well FSD navigated winding lanes and rural roads confidently. Kruppert said, “Autonomous driving sounds like science fiction to many, but we simply see here that it works totally well in rural regions too.” Kuhl, for his part, also noted that FSD “feels like a very experienced driver.”

The pilot complements the area’s “Citizen Bus” program, which provides on-demand rides for elderly residents who can no longer drive themselves. Tesla Europe shared a video of a demonstration of the service, highlighting how FSD gives people their freedom back, even in places where public transport is not as prevalent.

What the Ministry for Economic Affairs and Transport says

Rhineland-Palatinate’s Minister Daniela Schmitt supported the project, praising the collaboration that made this “first of its kind in Europe” possible. As per the ministry, the rural rollout for the service shows FSD’s potential beyond major cities, and it delivers tangible benefits like grocery runs, doctor visits, and social connections for isolated residents. 

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“Reliable and flexible mobility is especially vital in rural areas. With the launch of a shuttle service using self-driving vehicles (FSD supervised) by Tesla in the Eifelkreis Bitburg-Prüm, an innovative pilot project is now getting underway that complements local community bus services. It is the first project of its kind in Europe. 

“The result is a real gain for rural mobility: greater accessibility, more flexibility and tangible benefits for everyday life. A strong signal for innovation, cooperation and future-oriented mobility beyond urban centers,” the ministry wrote in a LinkedIn post

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