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Rivian might have paid a huge price for its $6 billion DoE loan

(Credit: Rivian)

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Rivian Automotive may end up paying a huge price for its $6 billion loan from the U.S. Department of Energy. 

As per recent reports, Rivian appears to have agreed to terms that lean heavily towards unionization to secure its high-profile DoE loan.

Strings Attached:

  • In September, President Joe Biden issued an order directing agencies to prioritize projects that promote “positive labor-management relations” with “agreements designed to facilitate first collective bargaining agreements, voluntary union recognition, and neutrality by the employer with respect to union organizing,” as noted in a report from The Wall Street Journal.
  • Rivian has reportedly entered into a neutrality agreement with the United Auto Workers (UAW), as noted in a Bloomberg News report. With the agreement in place, Rivian will not oppose unionization at its Illinois plant once certain profitability benchmarks are met.
  • Ford also agreed to a similar neutrality agreement with the UAW for its Tennessee EV plant. The DoE recently gave Ford-SK On a $9.6 billion loan for their battery venture.

Between the Lines:

  • The union push could exacerbate Rivian’s financial difficulties, with the company currently losing $107,043 per vehicle sold. Rivian currently faces challenges against profitable, non-unionized competitors such as Tesla.
  • Rivian anticipates profitability through EV credit sales, but this strategy might falter if the incoming Trump administration modifies EV mandates.

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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Japan paves the way for Tesla Full Self-Driving domestic rollout

Tesla’s vehicles are allowed to be retrofitted with a software update that could enable the activation of self-driving features.

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Credit: Tesla AI/X

Japan seems to be taking some serious steps to pave the way for the domestic rollout of Tesla’s Full Self-Driving (FSD) system in the country. 

This was hinted at by a decision from the Ministry of Land, Infrastructure, Transport and Tourism Ministry.

FSD update

As noted in a report from Nikkei, Tesla’s artificial intelligence-powered vehicles are allowed to be retrofitted with a software update that could enable the activation of their self-driving features. These features would be rolled out through an over-the-air (OTA) software update for vehicles that have already been sold to consumers.

Previous reports have indicated that Tesla Japan has started the testing of FSD technology on public roads. At the time, reports indicated that Tesla Japan employees have been conducting the tests, and the company is planning to release its FSD software to consumers in the near future, at least pending compliance with safety standards and guidelines. 

New guidelines

In a comment on X, former Tesla Board Member Hiro Mizuno explained that the Ministry of Land, Infrastructure, Transport and Tourism Ministry’s decision is no small matter, as it could pave the way for the smooth rollout of features like FSD to Tesla consumers in Japan. 

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“The Ministry of Land, Infrastructure, Transport and Tourism’s decision to allow retrofitting of autonomous driving through software updates is significant. Currently, Tesla is the only manufacturer actively pursuing this, but I had thought that if actual autonomous driving were to begin, it would be impossible to keep up if the approval process had to be repeated for every software update. As a result, this decision will make it easier for all manufacturers to introduce autonomous driving in Japan,” he wrote in a post on X.

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Tesla Cybercab lead engineer shares optimistic update

The Tesla engineer shared the update following the one-year anniversary of We, Robot.

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(Credit: Tesla North America/X)

The principal mechanical design engineer of the Tesla Robotaxi has provided a rather exciting update about the upcoming all-electric autonomous two-seater. The Tesla engineer shared the update following the one-year anniversary of We, Robot, when Elon Musk took the wraps off the Cybercab and the Robovan. 

Cybercab, one year in

Tesla has done an excellent job keeping the details of the Cybercab under wraps since its unveiling last year. Apart from brief showcases at Tesla stores and sightings at Gigafactory Texas, the Cybercab’s development has been quite a mystery. In recent weeks, however, drone footage from Giga Texas showed the Cybercab being worked on at the factory’s crash testing facility. 

One year is a substantial amount of time, and considering Tesla’s reputation for consistently improving its vehicles well after they are unveiled, developed, and released, expectations were high that the company had also been busy refining the Robotaxi over the past year. This was confirmed by Tesla Cybercab lead engineer Eric E., who noted in a reply on X that the autonomous two-seater has made a lot of progress in the past year.

“It’s sooo good, and way better than it was a year ago as well,” the Tesla engineer wrote in a post on X. 

Cybercab expectations

Elon Musk has been very optimistic about the Cybercab, with the CEO previously stating that the vehicle’s production line would likely resemble a high-speed consumer electronics line instead of a conventional automotive assembly line. Other Tesla executives such as VP of Vehicle Engineering Lars Moravy and Senior Design Executive Franz von Holzhausen have also shared in interviews that the company is targeting a battery pack under 50 kWh for the vehicle, which should still be able to provide almost 300 miles of real-world range.

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Despite its small size, the Cybercab is still very spacious, offering probably the biggest legroom among the company’s current vehicles. Its trunk is also very large enough to fit an enormous amount of cargo. Musk has also mentioned that Tesla should ultimately be able to produce a Cybercab every five seconds.  

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Elon Musk may rethink his charity pledge after Peter Thiel’s Bill Gates warning: report

Musk reportedly took Thiel’s suggestion seriously.

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Credit: Tesla

Reports have emerged suggesting that Elon Musk might be rethinking his promise to give away most of his fortune. This was reportedly due to his longtime friend Peter Thiel, who told the world’s richest man to withdraw from the Giving Pledge because his wealth could end up “in left-wing nonprofits chosen by Bill Gates.”

Thiel shared the story during a private lecture series in San Francisco in September. As noted in a Reuters report, Musk reportedly took Thiel’s suggestion seriously.

Thiel warned Musk about his fortune going to Gates-backed causes

Thiel said he even ran the math to make his point. By checking actuarial tables, he calculated that if Musk died within a year, his pledge would effectively direct $1.4 billion to Bill Gates. Musk reportedly said, “What am I supposed to do, give it to my children? You know, it would be much worse to give it to Bill Gates.”

Musk signed on to the Giving Pledge in 2012, two years after it was co-founded by Gates and Warren Buffett, as noted in a Daily Beast report. The initiative asks billionaires to donate the majority of their wealth to charitable causes either during their lifetime or through their wills. Gates’ foundation has focused on global health, education, and gender equality, areas Thiel has described as “left-leaning.”

Spokespeople for Thiel, Musk, and Gates have not issued a comment about the matter.

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Elon Musk and Bill Gates

Thiel, who co-founded PayPal with Musk in 2000 before launching Palantir and becoming Facebook’s first outside investor, has maintained close ties to the Tesla and SpaceX CEO over the years. Musk, for his part, continues to donate through the Musk Foundation, which funds education, clean energy, and scientific research.

Elon Musk and Bill Gates’ relationship has taken a nosedive in recent years, especially amidst news that the Microsoft co-founder had taken a short bet against Tesla. Musk seemed to have taken Gates’ Tesla short personally, considering that the EV maker is fighting for sustainability, a cause that the Microsoft co-founder has supported. 

Gates has also been skeptical of Tesla’s projects such as the Tesla Semi, which Gates noted was not feasible due to the limitations of battery technology. More recently, the two billionaires butted heads when Gates claimed that the cuts initiated by Musk’s DOGE initiative would cost 2 million lives. In a post on X, Musk responded by stating that “Gates is a huge liar.”

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