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Stealth EV startup Rivian receives $50M state tax credit and praise from IL Governor
Secret electric vehicle startup Rivian Automotive continues to stride towards its goal to produce a line of self-driving cars aimed at the future. We recently reported that Rivian finalized their purchase of the massive Mitsubishi factory in Normal, IL in January with goals of starting production in 2020.
Illinois Governor Bruce Rauner met with Rivian last Wednesday to announce that the company will receive $49.5M in Edge tax credits from the state, provided they meet employment benchmarks. Edge tax credits which stands for “Economic Development for a Growing Economy” allow businesses to receive the state’s income tax revenue from employees.
Founded in 2009, Rivian has been operating in stealth mode for the last six years as the company underwent intense product development. The company was founded to create something completely different than any other competitors out there. The planned vehicle is described as, “sports-car quick, but a vehicle your whole family can fit into.”
Rivian’s founder RJ Scaringe has a doctorate from MIT’s Sloan Automotive Laboratory. Scaringe said that his interest in vehicles started at a very young age, and tinkered with cars throughout his life. While at MIT, Scaringe considered dropping out to pursue starting up his own automotive company. Eventually, after fielding a few investment offers, he decided to stay at MIT and finish up his degree.
Rivian purchased the Normal, Illinois plant for $2M in January, which doesn’t include the factory’s equipment that was purchased in a separate transaction. This strategy is very similar to one employed by Tesla when it first acquired the NUMMI plant in Fremont. Start-up manufacturers Lucid Motors and Faraday Future are heading a different route by building their factories from scratch.
“It’s essentially a new plant; it was commissioned in 1990. Mitsubishi did a great job keeping up with all of the equipment and invested massively in the early 2000’s, so the robotics are all in great shape. The paint shop is in great shape, the stamping operation is incredible. So it really is a unique facility, with millions of dollars of equipment sitting inside of it. We are really lucky we have found it!”
Governor Rauner expressed a deep interest in what the company is doing and the potential impact it could have on the state. Rivian’s deal with the state requires them to create 1,000 jobs over the next ten years, which is similar to the deal they struck with the local municipalities.
“I’ve spent 45 minutes talking with RJ, talking strategy and product development and it’s incredible what he’s doing… We are hoping to move many of their people here in Illinois, we are working with them on that, ” said Rauner in a public comment during the event at Rivian’s factory. Rauner previously founded and ran private equity firm GTCR, assets over $11B, and has a long track record of success in the business world with a net worth rumored to be above $1B.
While the company has not revealed their board of directors, former managing director of Mclaren Automotive Antony Sheriff lists himself as a member of the board on his LinkedIn. Sheriff is also on the board at Rimac Automotive and is the Executive Chairman of Princess Yachts. Scaringe said the company isn’t ready to announce how they are being funded currently but said that would eventually be revealed.
Stay tuned for more exclusive coverage from Teslarati as we learn more about Rivian’s exciting future and explore the company’s plans.
Tesla has made two big interior changes to several Model Y vehicles in its lineup, and the changes come just as the new model year begins production.
Last year, Tesla launched the Model Y Standard, which separated the previous models into the “Premium” category. The Standard vehicles lack several features, including more premium interior materials, acoustic-lined glass, and storage.
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
The Model Y “Premium” trims are now getting several new upgrades, which come after the company launched a seven-seat configuration of the vehicle last night in the North American market for an upcharge of $2,500.
The new Model Y seven-seat configuration did not come with just an additional row of seating; it also came with a slew of other goodies that now come standard and were previously only available on the Model Y Performance, which was launched late last year.
All Black Headliner
The new Tesla Model Y Premium trims will now come standard with a black headliner, something that many owners have been requesting for some time.
The previous grey headliner and trim within the vehicle is now gone; it will be all black on all of the Premium trims from here on out, a welcome change:
Credit: Tesla
Larger and Higher Resolution Center Touchscreen
The center touchscreen in the new Model Y Premium configuration is now larger and has a higher resolution than the previous version.
In last year’s Model Y configurations (apart from the Performance), the center touchscreen was 15.4″. Now, Tesla has decided to go with the 16″ version across all Premium trims, which is a nice step up. It was nice to see this in the Performance, but it is really great to see Tesla include this in the Model Y’s more Premium trim levels.
Tesla Model Y Seven Seater
Tesla launched the latest iteration of the seven-seater for the Model Y on Monday night. Traditionally, the Model Y seats five passengers in total, but there were calls for a more spacious version several years ago.
Tesla released it, but it was extremely tight in the back, basically reserving those back seats for only small people or children.
Credit: Tesla
The new configuration looks to be slightly more spacious in the third row, but not as much space as most would require or want. Instead,
Elon Musk
Lufthansa Group to equip Starlink on its 850-aircraft fleet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Lufthansa Group has announced a partnership with Starlink that will bring high-speed internet connectivity to every aircraft across all its carriers.
This means that aircraft across the group’s brands, from Lufthansa, SWISS, and Austrian Airlines to Brussels Airlines, would be able to enjoy high-speed internet access using the industry-leading satellite internet solution.
Starlink in-flight internet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Starlink’s low-Earth orbit satellites are expected to provide significantly higher bandwidth and lower latency than traditional in-flight Wi-Fi, which should enable streaming, online work, and other data-intensive applications for passengers during flights.
Starlink-powered internet is expected to be available on the first commercial flights as early as the second half of 2026. The rollout will continue through the decade, with the entire Lufthansa Group fleet scheduled to be fully equipped with Starlink by 2029. Once complete, no other European airline group will operate more Starlink-connected aircraft.
Free high-speed access
As part of the initiative, Lufthansa Group will offer the new high-speed internet free of charge to all status customers and Travel ID users, regardless of cabin class. Chief Commercial Officer Dieter Vranckx shared his expectations for the program.
“In our anniversary year, in which we are celebrating Lufthansa’s 100th birthday, we have decided to introduce a new high-speed internet solution from Starlink for all our airlines. The Lufthansa Group is taking the next step and setting an essential milestone for the premium travel experience of our customers.
“Connectivity on board plays an important role today, and with Starlink, we are not only investing in the best product on the market, but also in the satisfaction of our passengers,” Vranckx said.
Elon Musk
Tesla locks in Elon Musk’s top problem solver as it enters its most ambitious era
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla has granted Senior Vice President of Automotive Tom Zhu more than 520,000 stock options, tying a significant portion of his compensation to the company’s long-term performance.
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla secures top talent
According to a Form 4 filing with the U.S. Securities and Exchange Commission, Tom Zhu received 520,021 stock options with an exercise price of $435.80 per share. Since the award will not fully vest until March 5, 2031, Zhu must remain at Tesla for more than five years to realize the award’s full benefit.
Considering that Tesla shares are currently trading at around the $445 to $450 per share level, Zhu will really only see gains in his equity award if Tesla’s stock price sees a notable rise over the years, as noted in a Sina Finance report.
Still, even at today’s prices, Zhu’s stock award is already worth over $230 million. If Tesla reaches the market cap targets set forth in Elon Musk’s 2025 CEO Performance Award, Zhu would become a billionaire from this equity award alone.
Tesla’s problem solver
Zhu joined Tesla in April 2014 and initially led the company’s Supercharger rollout in China. Later that year, he assumed the leadership of Tesla’s China business, where he played a central role in Tesla’s localization efforts, including expanding retail and service networks, and later, overseeing the development of Gigafactory Shanghai.
Zhu’s efforts helped transform China into one of Tesla’s most important markets and production hubs. In 2023, Tesla promoted Zhu to Senior Vice President of Automotive, placing him among the company’s core global executives and expanding his influence beyond China. He has since garnered a reputation as the company’s problem solver, being tapped by Elon Musk to help ramp Giga Texas’s vehicle production.
With this in mind, Tesla’s recent filing seems to suggest that the company is locking in its top talent as it enters its newest, most ambitious era to date. As could be seen in the targets of Elon Musk’s 2025 pay package, Tesla is now aiming to be the world’s largest company by market cap, and it is aiming to achieve production levels that are unheard of. Zhu’s talents would definitely be of use in this stage of the company’s growth.
Tesla makes two big interior changes to several Model Y vehicles
Lufthansa Group to equip Starlink on its 850-aircraft fleet
