News
VW’s “Dirty Diesels” gives life to Rivian’s future EV manufacturing plant
Nothing normal is happening at the newly acquired Rivian Automotive Factory in Normal, IL. Teslarati has discovered a massive stockpile of Volkswagen’s “dirty diesels” being stored on the aspiring electric car startup’s vast factory parking lot. The VWs on site were produced over the course of 6 years between 2009-2015, and are vehicles equipped with an emissions cheating device that became the subject of the global “VW Dieselgate scandal” which took place last year.
The owner of the plant, Rivian Automotive, is looking to make moves in the central Illinois town by developing their first production electric vehicle from the newly acquired ex-Mitsubishi factory. The company is leasing an onsite storage lot to a logistics company that’s responsible for transporting the thousands of affected vehicles to an unknown final destination.
Aerial inspections obtained via drone video by Teslarati, show an estimated 14,000 VWs being stored on the facility lots adjoining Rivian’s main factory. The plant was owned by Mitsubishi Motors until June 2016, before Rivian Automotive purchased the entire facility in January 2017 for $2 million. The facility was built in 1988 and boasts 1.9 million square feet of space, before expanding to 2.4 million square feet in 2003. Mitsubishi’s sales of the Outlander Sport (the sole vehicle produced at the factory) slumped when the Russian recession began in 2014; the vehicle was a massive hit in the country. The plant once employed 3,400 employees and ended production with 1,280 in late 2015.
“We know that the TDI emissions issue has understandably eroded the trust that we have worked so hard to build with you, our customers.” – VW in a pamphlet to affected customers
- VW Diesel vehicles being loaded off of a transport truck (Photo: Christian Prenzler for Teslarati)
- A variety of VW Diesels are being stored at the facility, some from as far as Montana [Credit: Christian Prenzler/Teslarati]
- The VWs are lined up very neatly as Vascor logistics makes use of the large lots [Credit: Christian Prenzler/Teslarati]
- Hundreds of VW 2.0 TDI’s parked awaiting their unknown future [Credit: Christian Prenzler/Teslarati]
- Hundreds of VW 2.0 TDI’s parked awaiting their unknown future [Credit: Christian Prenzler/Teslarati]
- Drone flies closely over the thousands of VW Diesel vehicles being stored at the Rivian Factory. [Photo: Jim Finch]
Images showing thousands of VW diesels on site paint a clear picture of the German automaker’s failure to come up with a real fix for vehicles equipped with emission cheating devices. VW has also been storing affected vehicles at the Pontiac Silverdome but based on our estimates, Rivian’s factory storage lots are approximately two and a half times larger than the Silverdome’s lots.
“These vehicles will be held and routinely maintained until it is determined whether an approved emissions modification becomes available. If approved, the settlement allows Volkswagen to modify affected 2.0L TDI vehicles so they can be returned to commerce or exported. Vehicles that are not modified must be responsibly recycled.” – Jeannine Ginivan, Volkswagen Group of America, Inc.
Uncertain effects from possible fixes
The vehicles stored at the site are expected to be pulled for parts and scrapped, but the company has not released official plans for all of 475,000 vehicles affected in the US as part of “Dieselgate”. VW is in the process of buying some vehicles and working towards solutions for vehicles that have been less affected by the emission devices. The 67,000 2015 3rd generation VW diesels were the first to receive an approved fix earlier this year. The fix does not bring the cars within federal compliance, but the vehicles emit significantly less NOx pollutant. VW is expected to release a phase 2 fix for the 3rd generation vehicles in 2018, which will bring the vehicles into federal compliance.
A spokesperson for Volkswagen Group of America told Teslarati that they have removed or modified more than 25% of the affected vehicles in the US, insinuating that the firm has bought back over 50,000 diesel cars since beginning the program four months ago (~67,000 were modified).
Software fixes to the 3rd generation vehicles will cause the following changes to the cars:
- Reduced performance in sport mode
- Engine sound variation
- 1-14 percent higher diesel exhaust fluid use
Owners of affected vehicles that have been given an approved fix also received two-thirds of the restitution cash that the company is issuing to customers. The last third will be distributed to owners after the phase 2 hardware update is completed. The phase 2 modifications are not designed to cause major differences in consumption or acceleration, but the cars efficiency and driving characteristics may change. Recently, The Daily Mail has reported that fixes to UK cars have resulted in “poor fuel consumption, weak acceleration, and mysterious rattles”.
Aerial Imagery of the Rivian Automotive Plant
While the terms of the deal between Rivian and Vascor Logistics are confidential, we know that revenue from the contract is contributing to the development of Rivian’s electric vehicle lineup. The global logistics company provides significant logistical services to automotive companies, one of which is VW. Rivian took ownership of the factory in January and has received incentive deals from both the State of Illinois and local municipalities.
“We are working hard to utilize the factory leading up to our production launch.” Rivian CEO, RJ Scaringe said in a comment to Teslarati.
The factory has direct access to several nearby interstate routes and has a rail car station directly on the property. Mitsubishi shipped a large portion of its vehicles around the globe from the facility, and to this day still has an operations warehouse near their old plant that’s being used for vehicle parts storage and logistics.
As Rivian continues developing their electric vehicle lineup, the company can make use of the factory by leasing out the vehicle storage lots and generate revenue. It is unclear how many more vehicles will be stored in Normal, IL or how long the vehicles will be retained on site, but Vascor’s operations at the factory appeared to be very active. VW’s polluting diesels are now giving way to the future of the automotive industry.
Vascor Logistics & Wheelan Security did not respond to our request for comment.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
The Tesla Model 3’s cheapest trim level just got a major accolade, as Edmunds just revealed the Rear-Wheel-Drive trim of the all-electric sedan is the most efficient EV that is currently in production.
The 2026 Tesla Model 3 Rear-Wheel-Drive not only beat its EPA-estimated range by 30 miles, but it also bested its efficiency mark by 13.2 percent. The Model 3 tested by Edmunds traveled 393 miles, beating its EPA rating by 8.3 percent, while it returned 21.7 kWh per 100 miles, or 4.61 mi/kWh.
Beating those two metrics is especially pertinent when it comes to EV ownership and driving down the cost of ownership from ICE counterparts across the board. The real money savings come from driving down the cost of driving per mile, especially when it comes to high-mileage driving.
Edmunds stated in its report and review that the process it uses to test EV efficiency is aimed at giving “the most accurate representation of a car’s real-world range.” The assessment uses a strict route that features 60 percent city and 40 percent highway driving, and an average speed of 40 MPH across the trip.
It also drives each car within 5 MPH of all posted speed limits, and the climate control is set on Auto at 72 degrees to ensure even testing. In other words, Edmunds does not use methods to maximize efficiency, and instead tries to make it reasonable to achieve the same ratings yourself.
In comparison to other EVs, it beat the 2026 Mercedes-Benz CLA 350, which went 385 miles, as well as the 2026 Audi A6 Sportback E-tron Prestige AWD, which traveled 392 miles. Only the Mercedes-Benz CLA 250+ traveled farther, making it an impressive 434 miles on a charge.
However, the Tesla Model 3 RWD’s efficiency is “unmatched” because of its incredibly low energy usage per mile.
🚨 Tesla Model 3 RWD:
-At $36,990, it is $9,000 cheaper than the average transaction price for a new car ($46,023 via KBB)
-Was 13.2% more efficient than its EPA estimate
-Traveled 393 miles on a charge despite its 363-mile EPA range https://t.co/Grov2hXqpa pic.twitter.com/Zl8rnZZLIB
— TESLARATI (@Teslarati) June 8, 2026
The Model 3 Rear-Wheel-Drive might be the best bang-for-your-buck EV if you’re looking to buy new and want access to features like Full Self-Driving, while also being aware of efficiency. This trim of the Model 3 is also priced over $9,000 cheaper than what Kelley Blue Book says the average transactional price for a new car was in May 2026, which sits at $46,023.
If you’re looking for something with more speed, an All-Wheel-Drive drivetrain, or more premium features, the Premium trims of the Model 3 currently come with one year of Free Supercharging.
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Tesla tipped its hand at where Robotaxi is heading next
Tesla Model 3’s cheapest trim just got a major accolade
