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VW’s “Dirty Diesels” gives life to Rivian’s future EV manufacturing plant

Photo: Jim Finch for Teslarati

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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

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.

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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.

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“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.

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Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Tesla gets new insurance program from firm that offered ‘almost free’ FSD rates

Tesla recently was offered “almost free” coverage for Full Self-Driving by Lemonade’s Shai Wininger, President and Co-founder, who said it would be “happy to explore insuring Tesla FSD miles for (almost) free.”

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Credit: Tesla

Tesla owners in California, Oregon, and Arizona can now use Lemonade Insurance, the firm that recently said it could cover Full Self-Driving miles for “almost free.”

Lemonade, which offered the new service through its app, has three distinct advantages, it says:

  • Direct Connection for no telematics device needed
  • Better customer service
  • Smarter pricing

The company is known for offering unique, fee-based insurance rates through AI, and instead of keeping unclaimed premiums, it offers coverage through a flat free upfront. The leftover funds are donated to charities by its policyholders.

On Thursday, it announced that cars in three states would be able to be connected directly to the car through its smartphone app, enabling easier access to insurance factors through telematics:

Tesla recently was offered “almost free” coverage for Full Self-Driving by Lemonade’s Shai Wininger, President and Co-founder, who said it would be “happy to explore insuring Tesla FSD miles for (almost) free.”

The strategy would be one of the most unique, as it would provide Tesla drivers with stable, accurate, and consistent insurance rates, while also incentivizing owners to utilize Full Self-Driving for their travel miles.

Tesla Full Self-Driving gets an offer to be insured for ‘almost free’

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This would make FSD more cost-effective for owners and contribute to the company’s data collection efforts.

Data also backs Tesla Full Self-Driving’s advantages as a safety net for drivers. Recent figures indicate it was nine times less likely to be in an accident compared to the national average, registering an accident every 6.36 million miles. The NHTSA says a crash occurs approximately every 702,000 miles.

Tesla also offers its own in-house insurance program, which is currently offered in twelve states so far. The company is attempting to enter more areas of the U.S., with recent filings indicating the company wants to enter Florida and offer insurance to drivers in that state.

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Tesla Model Y gets hefty discounts and more in final sales push

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Credit: Tesla

Tesla Model Y configurations are getting hefty discounts and more benefits as the company is in the phase of its final sales push for the year.

Tesla is offering up to $1,500 off new Model Y Standard trims that are available in inventory in the United States. Additionally, Tesla is giving up to $2,000 off the Premium trims of the Model Y. There is also one free upgrade included, such as a paint color or interior color, at no additional charge.

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Tesla is hoping to bolster a relatively strong performance through the first three quarters of the year, with over 1.2 million cars delivered through the first three quarters.

This is about four percent under what the company reported through the same time period last year, as it was about 75,000 vehicles ahead in 2024.

However, Q3 was the company’s best quarterly performance of all time, and it surged because of the loss of the $7,500 EV tax credit, which was eliminated in September. The imminent removal of the credit led to many buyers flocking to Tesla showrooms to take advantage of the discount, which led to a strong quarter for the company.

2024 was the first year in the 2020s when Tesla did not experience a year-over-year delivery growth, as it saw a 1 percent slide from 2023. The previous years saw huge growth, with the biggest coming from 2020 to 2021, when Tesla had an 87 percent delivery growth.

This year, it is expected to be a second consecutive slide, with a drop of potentially 8 percent, if it manages to deliver 1.65 million cars, which is where Grok projects the automaker to end up.

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Tesla will likely return to its annual growth rate in the coming years, but the focus is becoming less about delivery figures and more about autonomy, a major contributor to the company’s valuation. As AI continues to become more refined, Tesla will apply these principles to its Full Self-Driving efforts, as well as the Optimus humanoid robot project.

Will Tesla thrive without the EV tax credit? Five reasons why they might

These discounts should help incentivize some buyers to pull the trigger on a vehicle before the year ends. It will also be interesting to see if the adjusted EV tax credit rules, which allowed deliveries to occur after the September 30 cutoff date, along with these discounts, will have a positive impact.

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Tesla FSD’s newest model is coming, and it sounds like ‘the last big piece of the puzzle’

“There’s a model that’s an order of magnitude larger that will be deployed in January or February 2026.”

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Credit: Tesla

Tesla Full Self-Driving’s newest model is coming very soon, and from what it sounds like, it could be “the last big piece of the puzzle,” as CEO Elon Musk said in late November.

During the xAI Hackathon on Tuesday, Musk was available for a Q&A session, where he revealed some details about Robotaxi and Tesla’s plans for removing Robotaxi Safety Monitors, and some information on a future FSD model.

While he said Full Self-Driving’s unsupervised capability is “pretty much solved,” and confirmed it will remove Safety Monitors in the next three weeks, questions about the company’s ability to give this FSD version to current owners came to mind.

Musk said a new FSD model is coming in about a month or two that will be an order-of-magnitude larger and will include more reasoning and reinforcement learning.

He said:

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“There’s a model that’s an order of magnitude larger that will be deployed in January or February 2026. We’re gonna add a lot of reasoning and RL (reinforcement learning). To get to serious scale, Tesla will probably need to build a giant chip fab. To have a few hundred gigawatts of AI chips per year, I don’t see that capability coming online fast enough, so we will probably have to build a fab.”

It rings back to late November when Musk said that v14.3 “is where the last big piece of the puzzle finally lands.”

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With the advancements made through Full Self-Driving v14 and v14.2, there seems to be a greater confidence in solving self-driving completely. Musk has also personally said that driver monitoring has been more relaxed, and looking at your phone won’t prompt as many alerts in the latest v14.2.1.

This is another indication that Tesla is getting closer to allowing people to take their eyes off the road completely.

Along with the Robotaxi program’s success, there is evidence that Tesla could be close to solving FSD. However, it is not perfect. We’ve had our own complaints with FSD, and although we feel it is the best ADAS on the market, it is not, in its current form, able to perform everything needed on roads.

But it is close.

That’s why there is some legitimate belief that Tesla could be releasing a version capable of no supervision in the coming months.

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All we can say is, we’ll see.

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