California EV maker Rivian has said it has secured conditional approval of a loan of up to $6.6 billion from the U.S. Department of Energy to build a production facility in Georgia. Among those conditions is a big one, that the company won’t actively oppose union organizing efforts.
Rivian has been setting plans in place to build a plant in Georgia – the company’s second US plant – but the company has hit some tough economic times, with shares dropping about 50% this year. Earlier this year, the company put its Georgia factory on hold.
Since, it has been building its smaller, more affordable R2 SUV at its plant in Normal, Illinois, where it also makes its flagship R1S SUVs and the R1T pickup trucks.
“This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Rivian CEO RJ Scaringe said in the statement.
Of course, it is “conditional” approval, meaning that Rivian has “to satisfy certain technical, legal, environmental, and financial conditions before the energy department grants the loan,” the company said.
Rivian secures a $6.6 billion loan from the US Department of Energy – with a few stipulations
While details of the conditions weren’t included in the original report, one detail was, at least touched on: that Rivian will not, in fact, actively oppose union organizing efforts at the Georgia plant, a source close to the subject told Reuters. But that of course, the loan wouldn’t “guarantee unionization” at the plant either. In an email, Rivian declined to comment on the matter at this time.
The Illinois factory, its only plant, has also been in the spotlight due to racking up more “serious” US safety violations than any other automaker since the start of 2023, according to Bloomberg. And the company hasn’t been exactly warm to unionizing efforts, despite pressures from President Biden to do so. Back when Rivian applied for financing from the Department of Energy, the government was already nudging the company to shift to a friendlier stance toward the United Auto Workers Union, although what that exactly means isn’t clearer. It could mean, as Bloomberg cited in July, to include discussion around labor engagement and showing more openness to working with labor unions. Of course, the incoming president has a different stance on this issue, so perhaps the current lack of clarity is just a way of holding off until we have a better idea of how both the EV landscape and UAW support will change.
The Rivian factory in Normal employs around 7,400 workers, and the EV maker is one of the city’s largest employers, with multiple members of some families working at the plant.
Rivian’s Georgia plant will have a yearly capacity of 200K
The Georgia loan comes from the government’s Advanced Technology Vehicles Manufacturing loan program, which has also given loans to Tesla, Ford, and GM. Rivian’s Georgia EV plant is the second-largest development project in the state behind Hyundai’s $7.6 billion facility that began production last week.
The plant would help Rivian bring 400,000 EVs to market “and into greater use,” the Department of Energy said back in October as it was considering the loan. The 1,744-acre site for the plant is 40 miles east of Atlanta, and will include two production blocks, each with a capacity of up to 200,000 vehicles annually. Rivian is expected to break ground in the second quarter of 2026.
Monday, Rivian announced that the loan includes $6 billion of principal and $600 million of capitalized interest. The news follows that of Rivian closing its $5.8 billion investment from Volkswagen as part of their technology joint venture. Back in 2022, Rivian secured $1.5 billion in state and local incentives for the Georgia plant. In May, the EV maker received $847 million in state incentives to expand its Illinois factory.
Photo credit: Rivian
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It was worrying a month away from the start of the service and in comparison to Waymo, which tested its system with safety driver for 6 months and without safety drivers for another 6 months before launching in Austin earlier this year.
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Now, CEO Elon Musk has confirmed that the previous report was true as he announced that Tesla has been testing the service with “no one in driver’s seat” only for the “past several days”:
For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver’s seat) on Austin public streets with no incidents. A month ahead of schedule.
He claimed that it is “a month ahead of schedule”, but he has also said that Tesla would launch the service to paid customers in June.
If true, it would imply that Tesla didn’t plan to test the service without a safety driver in the vehicle.
The CEO then added that Tesla will deliver a car to a customer from the factory using self-driving next month:
Next month, first self-delivery from factory to customer.
Tesla is planning to launch a small fleet of 10 to 20 Model Y vehicles for its robotaxi service in Austin next month.
Bloomberg recently reported that Tesla is aiming for June 12, but the date could change.
The service is expected to be using “heavy teleoperation.” Musk nor Tesla confirmed the level of teleoperation, but it could be significant as one teleoperator per car.
Over the last few days, several reports came out pointing to Tesla not having communicated important part of the planned rollout of the service to local authorities.
Electrek’s Take
At this point, I think this is either going to be fake, meaning an extremely high level of teleoperation, or a complete shit show, or both.
Musk claims to be “a month ahead of schedule” even though Tesla started testing its service without safety driver about 2 weeks before the planned start of the service. That’s ridiculous.
It’s not victory to have “no incidents” after a few days of testing. You need to have no incidents over months of testing and hundreds of thousands of miles before launching.
At this point, I’m praying that Tesla is launching this in a small geo-fenced area without highways or any high speed driving to limit potential dangers and to ensure teleoperators can increase safety. But even then, I fear there will be avoidable crashes.
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Tesla’s sales have fallen 87% in Quebec in the first quarter 2025 compared to the same period last year.
The critical Canadian market has been wiped out, and Tesla is no longer importing new vehicles.
Quebec is the leading EV market in Canada, with the highest adoption rate of new electric vehicles.
That’s due to incentives, cheap hydro electricity, and a strong base of EV enthusiasts.
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As the EV leader in North America, Quebec became an important market for Tesla.
However, Tesla’s market in Quebec is now gone.
We don’t have all Canadian data for vehicle registrations in the first quarter; however, Le Devoir managed to obtain data for Quebec from the Société d’assurance automobile du Québec (SAAQ), which revealed that Tesla delivered only 524 vehicles in Quebec during Q1 2025.
That’s down 87% compared to Q1 2024.
The pause in the Quebec and federal EV incentive programs contributed to the sharp decline, but the pause also happened in the quarter, which helped sales by creating urgency to buy and take delivery.
However, it also created an awkward situation for Tesla in which it was accused of filing thousands of questionable requests for incentives worth $42 million CAD, which it later claimed was a backlog of deliveries that it hadn’t filed yet.
This controversy added to growing brand damage for Tesla in Quebec and the broader Canada due to its CEO Elon Musk’s backing of Donald Trump, who is openly calling for the US to annex Canada.
Tesla’s Canadian Troubles are not over
While Q1 2025 was bad, Q2 could prove even worse. Tesla had to increase prices in Canada in April due to the Canadian government slapping 25% tariffs on its vehicles in response to Trump’s trade war.
The combination of the end of some incentive programs, the higher prices, and the degrading sentiment for Tesla in Canada and Quebec is leading to very few sales in the market.
A source familiar with the matter said that Tesla doesn’t plan to import more vehicles in the country this quarter due to low demand.
The broader EV market in Canada declined 45% in Q1 due to the pause in the incentive program, but Tesla’s decline was much sharper, indicating larger issues than just the lack of incentives.
Electrek’s Take
The situation for Tesla in Canada is even worse than in Europe right now. It’s not the largest market in terms of size, but it has a significantly higher EV adoption rate than the US and has helped Tesla in North America.
As long as the tariffs are in place, there’s little hope for Tesla in Canada.
Even if they are removed, which I hope happens soon, as it would mean a de-escalation of Trump’s dumb and illegal trade war, Tesla is still going to have major brand issues due to Musk’s backing of Trump and him saying some foolish things like “Canada is not a real country.”
All of those factors add to Tesla’s aging and limited lineup, which too heavily relies on Model Y, which had a refresh that wasn’t significant enough to revitalize sales.
It’s really hard to be optimistic about Tesla right now.
In Canada, Tesla currently has some inventory of the new Model Y, which it managed to secure before the tariffs. If you’re interested in a Cybertruck, there are plenty available. Although, I have a feeling that you are better off waiting a bit as I assume prices will come down.
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Kia’s smallest and most affordable EV is already creating quite the buzz. The EV2 will sit below the EV3 in Kia’s expanding EV lineup. With its official launch approaching, the Kia EV2 was spotted on public roads, giving us a closer look at the upcoming electric SUV.
Take a closer look at the Kia EV2 caught on public roads
Although the EV2 will likely only be around 4,000 mm (157″) long, Kia promises it won’t feel so small when you’re actually in it.
Last month, we got a sneak peek of the interior at Milan Design Week. During an exclusive event, Kia showcased the EV2 concept and revealed a few new details we can expect to see.
Kia designed the EV2’s interior to be a relaxing retreat from the city’s hustle and bustle, sort of like a porch or balcony. Thanks to its flat floor layout, the SUV offers flexible seating. By folding the second-row seats and pushing the front seats forward, the EV2 offers an open space to stretch out or “enjoy a meal,” according to Kia.
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Although no other details were offered, like Kia’s newer EVs, you can expect to see its new ccNC panoramic infotainment system with dual 12.3″ driver and navigation screens.
After the EV2 was spotted driving on public roads, we are getting a better look at Kia’s upcoming electric SUV. The video from ShortsCar reveals a front-end design similar to that of the EV3, EV5, and EV9, featuring its signature vertical daytime running lights (DRLs) and Star Map lightning.
Kia EV2 driving on public roads (Source: ShortsCar)
Despite its small size, the EV2 has a surprisingly large presence on the road, thanks to its upright stance and broad wheel arches, reminiscent of the larger EV9.
A production version of the EV2 was also spotted in Germany this week, with its European debut just around the corner. The images by SH Proshots (via TheKoreanCarBlog) show a similar design to the model caught driving in Korea.
Kia will launch the EV2 in Europe and other regions in early 2026. Prices and final specs will be revealed closer to then, but the EV2 is expected to arrive with a WLTP range of around 300 miles (483 km). Smaller battery options could offer less range at a lower price.
Since it’s slated to sit below the EV3, which is 4,300 mm (169″) long, the EV2 is expected to be closer to 4,000 mm (157″) in length.
Like Kia’s other electric vehicles, it will be based on Hyundai’s E-GMP platform, which also underpins its IONIQ series.
Kia’s CEO, Ho-Sung Song, told Autocarthat the company plans to launch the EV2 in the UK with prices starting at about £25,000 ($32,000). Since that was a few years ago, plans could have changed. We will learn more soon. Check back for the latest.
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