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As Tesla rises, Volkswagen's largest shareholders back CEO's controversial EV push

(Credit: Daniel Aharonoff/Twitter)

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As Tesla continues to rise in Europe with the construction of Giga Berlin and the impending local prduction of the Model Y, Volkswagen’s controlling family issued a rare statement of support for CEO Herbert Diess’ aggressive and somewhat controversial electric car push. In a recent statement to local German media, the Porsche-Piech family stated that they are fully backing the CEO in these trying times, as a painful shift to electric cars may be what is required to keep Volkswagen thriving in the coming EV age. 

Volkswagen CEO Herbert Diess is a staunch proponent of electric cars, with the company’s first all-electric vehicle, the ID.3, being his personal project. Diess’ dedication for electric cars has earned the respect of Tesla CEO Elon Musk, who has expressed his support for the Volkswagen CEO’s efforts in the past. “Herbert Diess is doing more than any big carmaker to go electric. The good of the world should come first. For what it’s worth, he has my support,” Musk wrote. 

Unfortunately for Diess, his aggressive push for electrification has faced sharp criticism. These negative sentiments have only become more prominent as Volkswagen’s ID.3 ramp met roadblocks due to the vehicle’s software. Diess has predicted these challenges, stating that Volkswagen’s shift towards electric mobility is “perhaps the most difficult task VW has ever had to face.” Yet with investors reportedly growing restless, it appeared that the Porsches and Piëchs, Volkswagen’s controlling family, have deemed it pertinent to express their stance. 

In a statement to the BILD newspaper on Thursday, Supervisory Board member Hans-Michel Piëch stated that he fully supports Diess’ initiatives. “He has our support. He is faced with an enormous task. For this, he needs strength, but also support from everyone in the Group,” he said. Wolfgang Porsche, Piëch’s cousin, echoed his sentiments. “Even if Mr. Diess is criticized from many sides, he would be taking an insane risk: There is no alternative today to the path that he and the Volkswagen Board of Management have taken,” Porsche said. 

Apart from openly supporting Diess’ efforts, the VW majority shareholders explained why the company had gone all-in on electric cars. For example, Diess has taken a strong stance against hydrogen, opting instead to focus solely on electric vehicles. According to Piëch, this is a decision that he and his cousin fully support. “The discussion about a decision for hydrogen or batteries alone is unfortunate. Hydrogen is too expensive for the foreseeable future and simply cannot be produced with sustainable energy,” he said. 

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Wolfgang Porsche, for his part, has stated that an intense focus on developing next-generation automotive solutions is needed to survive and thrive in the car industry of the future. Seemingly addressing Volkswagen’s current issues with the ID.3’s software, Porsche stated that it is better to tackle the growing pains of electrification now, instead of potentially facing a real risk in the future. “In the future, digitization and software will determine the car. You have to know: If we don’t tackle this transformation now, the company will have a huge problem in the future,” Porsche said. 

The coming years will likely be historic for the automotive industry as a whole. Young carmakers such as Tesla have established a hold in the mainstream market, with vehicles such as the Model 3 becoming a viable and even preferable alternative to conventional best-sellers like the BMW M3. With legacy carmakers now realizing the value of electric cars and the importance of battery tech and software, it is in the best interest of Volkswagen to ensure that it invests in the future today. For now, this would likely result in several painful transitions. But if Diess, Piëch, and Porsche’s statements are any indication, it appears that Volkswagen will be willing to take some heavy blows if it means securing a future where the company is still relevant and competitive. 

H/T Alex Voigt.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla is already giving Robotaxi privileges hours after opening public app

This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.

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Credit: Tesla

Tesla is already giving Robotaxi privileges to those who downloaded the app and joined its waitlist just hours after it launched in the United States.

As the Robotaxi platform has been operating in Austin for several months, Tesla is now allowing the general public to download its app and call for a driverless ride in the city.

Tesla Robotaxi makes major expansion with official public app launch

The company previously sent invitations to select media outlets and Tesla influencers, seeking initial feedback on the performance of the Robotaxi platform.

There have been positive reviews, but, as with any Beta program, some mishaps have also occurred, although none have been significant.

As of the writing of this article, the City of Austin only lists one incident involving a Tesla Robotaxi, noting it as a “Safety Concern,” but not an accident or collision.

This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.

Tesla is already granting Robotaxi access to several of those who have downloaded the app and gotten on the waitlist early:

With the launch of the public app, we were not too sure how soon Tesla would be able to initiate bringing more riders into the Robotaxi program. The immediate admittance for some riders just hours after the launch is a big positive and is surely a sign of strength for Tesla and its Robotaxi program.

What many will look for moving forward is the expansion of the geofence, which does not seem like a problem, as Tesla has already managed to do this on three occasions. The most recent expansion has expanded the service area to approximately 190 square miles.

People will also look for evidence of fleet expansion, a concern that has been a concern for many, especially since Tesla has not been completely transparent about it. They have revealed a recent service fleet growth of 50 percent, but there has been no specific number of vehicles mentioned.

Tesla reveals it has expanded its Robotaxi fleet in Austin

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Tesla explains why Robotaxis now have safety monitors in the driver’s seat

The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media.

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Credit: Tesla

Tesla has provided an explanation about the presence of safety monitors in the driver’s seat of its autonomous Robotaxi units.

The autonomous ride-hailing service is currently being deployed in Austin and the Bay Area, with more cities across the United States expected to gain access to the service later this year.

Safety Monitors

When Tesla launched its initial Robotaxi program in Austin, the company made headlines for operating vehicles without a human in the driver’s seat. Even with this setup, however, Tesla still had safety monitors in the passenger seat of the Robotaxis. The safety monitors, which do not interact with passengers, have been observed to report issues and other behaviors from the autonomous vehicles in real time. 

Safety monitors on the driver’s seat were also employed in the service’s Bay Area rollout, though numerous members of the EV community speculated that this was likely done to meet regulations in California. However, with the expansion of the Austin geofence, riders in Tesla’s Robotaxis observed that the safety monitors in the city have been moved to the driver’s seat as well.

Tesla’s explanation

The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media. Longtime FSD tester Whole Mars Catalog, for one, speculated that the move might be due to Texas’ new regulations for autonomous vehicles, which took effect recently. Interestingly enough, the official Tesla Robotaxi account on X responded to the FSD tester, providing an explanation behind the safety monitor’s move to the driver’s seat. 

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“Safety monitors are only in the driver’s seat for trips that involve highway driving, as a self-imposed cautious first step toward expanding to highways,” the Tesla Robotaxi account noted.

Tesla has been extremely cautious with its autonomous driving program, particularly with the rollout of its Robotaxi service, which use Unsupervised FSD. This is quite understandable considering the negative media slant that Tesla is consistently subjected to, which could very well result in minute incidents or mistakes by Robotaxis being blown out of proportion.

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The Boring Company begins hiring for Nashville’s Music City Loop

Tennessee Gov. Bill Lee expressed strong support for the project.

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Credit: The Boring Company/X

Elon Musk’s The Boring Company has started recruitment efforts for the Music City Loop, an underground tunnel system designed to link downtown Nashville with Nashville International Airport. 

Tennessee Gov. Bill Lee expressed strong support for the project, describing it as a cost-free alternative to traditional mass transit systems that could ease traffic congestion in the city. Initial digging began in mid-August, with visible progress reported by September 1, as noted in a WKRN report.

Job creation and project scope

The Boring Company is currently seeking engineers, electricians, mechanics, and operations coordinators as part of its hiring drive for the Music City Loop in Nashville. Gov. Lee emphasized that unlike large-scale transit projects that typically cost billions, the tunnel system will not burden taxpayers.

“We’ve been trying to find ways, Metro Nashville has in particular, to develop transit in the city for a long time. It costs billions and billions of dollars to build out transit systems. We now have an opportunity to have a transit system that costs the taxpayers nothing,” Lee said, calling the effort the fast lane to the city’s future.

The Music City Loop aims to provide a quick and efficient link between the city center and the airport, similar to The Boring Company’s other tunnel projects like the Las Vegas Convention Center Loop. Officials have praised the company for cooperating with state permitting and regulatory requirements, suggesting that the Nashville Loop project is advancing in line with established processes.

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Community reactions and concerns

While officials are optimistic, community response has been mixed. Some residents have raised concerns about the speed of approval and a lack of public discussion before construction began.

Nashville resident Taylor John cited environmental impacts and worries that the tunnel could primarily serve tourists rather than local commuters. “I have a lot of concerns, first of all, by how fast this decision was made, I don’t think there was a lot of discussion from the members of the community before this decision was made. It’s going to impact us,” the resident stated.

Others, however, see the project as an innovative leap forward. “There’s a whole untapped potential underneath our feet,” resident Nathaniel Lehrer stated. “Anything that can save time when picking up family or friends or you need to catch a flight, it’d be an awesome option to have.”

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