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Rivian wins massive incentive package for R2 vehicle production in Illinois

Rivian Automotive's Normal, IL factory. (Photo: Rivian)

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Rivian has won a massive $827 million incentive package from the State of Illinois Department of Commerce & Economic Opportunity, which will be used to expand the R2 production facility in Normal, Illinois.

In March, Rivian unveiled the R2 and R3 midsize SUVs, its next vehicles that will be more affordable than its introductory R1T and R1S platforms.

It was originally thought that Rivian’s Georgia Factory would be the site of R2 and R3 production, but the automaker confirmed during the vehicle unveiling that it would effectively delay the construction of that site as financial conditions are not ideal currently.

Rivian in talks with Illinois about incentives ahead of R2 production

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Additionally, building the R2 platform in Normal will help the company launch production earlier than it would be able to if it opted to manufacture in Georgia:

“To enable R2 to be launched earlier and with a considerable reduction in the capital required for its launch, Rivian plans to start production of R2 in its existing Normal, Illinois manufacturing facility. Beyond significantly reducing the amount of capital needed to bring R2 to market, the company believes this approach considerably reduces risk to the launch and associated ramp; efficiently leverages its existing manufacturing and operations teams; and expands the total capacity for the site to 215,000 units per year. Rivian’s Georgia plant remains an extremely important part of its strategy to scale production of R2 and R3. The timing for resuming construction is expected to be later to focus its teams on the capital-efficient launch of R2 in Normal, Illinois..”

Now, Rivian is moving forward with plans to build out the Normal factory to make room for R2 production, and the State of Illinois is providing a sizeable investment to do so.

The $827 million package will expand the Normal facility, improve public infrastructure, and provide job training for the Rivian workforce.

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“We are grateful for this investment from the State of Illinois and for the leadership of Governor Pritzker, President Harmon, and Speaker Welch,” CEO RJ Scaringe said. “The support from the state will allow us to quickly bring our midsize SUV, R2, to market and provide even greater consumer choice for EVs. Governor Pritzker has always been a strong advocate for providing economic opportunities for Illinois residents and business owners alike. We look forward to continuing our close partnership and building upon the success we have enjoyed.”

Rivian has invested over $2 billion in Normal and added over $3.9 billion to the local economy’s value.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Starlink terminals smuggled into Iran amid protest crackdown: report

Roughly 6,000 units were delivered following January’s unrest.

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Credit: Starlink/X

The United States quietly moved thousands of Starlink terminals into Iran after authorities imposed internet shutdowns as part of its crackdown on protests, as per information shared by U.S. officials to The Wall Street Journal

Roughly 6,000 units were delivered following January’s unrest, marking the first known instance of Washington directly supplying the satellite systems inside the country.

Iran’s government significantly restricted online access as demonstrations spread across the country earlier this year. In response, the U.S. purchased nearly 7,000 Starlink terminals in recent months, with most acquisitions occurring in January. Officials stated that funding was reallocated from other internet access initiatives to support the satellite deployment.

President Donald Trump was aware of the effort, though it remains unclear whether he personally authorized it. The White House has not issued a comment about the matter publicly.

Possession of a Starlink terminal is illegal under Iranian law and can result in significant prison time. Despite this, the WSJ estimated that tens of thousands of residents still rely on the satellite service to bypass state controls. Authorities have reportedly conducted inspections of private homes and rooftops to locate unauthorized equipment.

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Earlier this year, Trump and Elon Musk discussed maintaining Starlink access for Iranians during the unrest. Tehran has repeatedly accused Washington of encouraging dissent, though U.S. officials have mostly denied the allegations.

The decision to prioritize Starlink sparked internal debate within U.S. agencies. Some officials argued that shifting resources away from Virtual Private Networks (VPNs) could weaken broader internet access efforts. VPNs had previously played a major role in keeping Iranians connected during earlier protest waves, though VPNs are not effective when the actual internet gets cut.

According to State Department figures, about 30 million Iranians used U.S.-funded VPN services during demonstrations in 2022. During a near-total blackout in June 2025, roughly one-fifth of users were still able to access limited connectivity through VPN tools.

Critics have argued that satellite access without VPN protection may expose users to geolocation risks. After funds were redirected to acquire Starlink equipment, support reportedly lapsed for two of five VPN providers operating in Iran.

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A State Department official has stated that the U.S. continues to back multiple technologies,  including VPNs alongside Starlink, to sustain people’s internet access amidst the government’s shutdowns.

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Tesla ramps up Sweden price war with cheaper Model Y offer

The incentive effectively acts as a manufacturer-funded EV bonus and makes the entry-level Model Y more affordable.

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Credit: Tesla

Tesla has introduced a new 40,000 SEK incentive in Sweden, lowering the price of its most affordable Model Y to a record low. The incentive effectively acts as a manufacturer-funded EV bonus and makes the entry-level Model Y more affordable.

As per a report from Swedish auto outlet Allt om Elbil, Tesla Sweden is offering a 40,000 SEK electric car bonus on the entry-level Tesla Model Y Rear-Wheel Drive variant. The incentive lowers the purchase price of the base all-electric crossover to 459,900–459,990 SEK, depending on listing.

The bonus applies to orders and deliveries completed by March 31, 2026. Tesla Sweden is also offering zero-interest financing as part of the campaign.

Last fall, Tesla launched a new base version of the Model Y starting at 499,990 SEK. The variant features a refreshed design and simplified equipment compared to the Premium and Performance variants. The new 40,000 SEK incentive now pushes the entry model well below the 460,000 SEK mark.

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So far this year, the Model Y remains the most registered electric vehicle in Sweden and the third most registered new car overall. However, most registrations have been for higher Premium-spec versions. The new incentive could then be Tesla’s way to push sales of its most affordable Model Y variant in the country. 

Tesla is also promoting private leasing options for the entry-level Model Y at 4,995 SEK per month. Swedish automotive observers have noted that leasing may remain the more cost-effective option compared to purchasing outright, even after the new discount.

The base Model Y Rear-Wheel Drive offers a WLTP range of 534 kilometers, a top speed of 201 km/h, and a 0–100 km/h time of 7.2 seconds. Tesla lists energy consumption at 13.1 kWh per 100 kilometers, making it the most efficient version of the vehicle in the lineup and potentially lowering overall ownership costs. 

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Tesla China hires Autopilot Test Engineer amid continued FSD rollout preparations

The role is based in Lingang, the district that houses Gigafactory Shanghai.

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Credit: Grok Imagine

Tesla is hiring an Autopilot Test Engineer in Shanghai, a move that signals continued groundwork for the validation of Full Self-Driving (FSD) in China. The role is based in Lingang, the district that houses Gigafactory Shanghai and has become a key testing zone for advanced autonomous features.

As observed by Tesla watchers, local authorities in Shanghai’s Nanhui New City within Lingang have previously authorized a fleet of Teslas to run advanced driving tests on public roads. This marked one of the first instances where foreign automakers were permitted to test autonomous driving systems under real traffic conditions in China. 

Tesla’s hiring efforts come amid ongoing groundwork for a full FSD rollout in China. Earlier reporting noted that Tesla China has been actively preparing the regulatory and infrastructure foundation needed for full FSD deployment, even though the company has not yet announced a firm launch date for the feature in the market.

As per recent comments from Tesla China Vice President Grace Tao, the electric vehicle maker has been busy setting up the necessary facilities to support FSD’s full rollout in the country. In a comment to local media, Tao stated that FSD should demonstrate a level of performance that could surpass human drivers once it is fully rolled out. 

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“We have set up a local training center in China specifically to handle this adaptation,” Tao said. “Once officially released, it will demonstrate a level of performance that is no less than, and may even surpass, that of local drivers.”

Tesla CEO Elon Musk has been quite bullish about a potential FSD rollout in China. During the 2025 Annual Shareholder Meeting, Musk emphasized that FSD had only received “partial approval” in China, though full authorization could potentially arrive around February or March 2026. This timeline was reiterated by the CEO during his appearance at the World Economic Forum in Davos.

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