Volkswagen has a long and storied tradition of building world-class vehicles. While they have managed to make a legacy off of offering affordable, stylish, and effectively-performing models for 84 years, their next big challenge comes in the tall task of creating and engineering electric vehicles that are functional. While this sounds like an easy task for the legendary German car company, it has encountered several problems over the course of its MEB platform’s development. The narrative of the problem solving has changed several times in the past year.
The software issues for Volkswagen have been evident since the initial development of the ID. family of vehicles. Now, Volkswagen has been relatively transparent regarding the issues with its software in the past. Recently, there has been a trend, however, in how the company’s software project is being portrayed because for a while, Volkswagen was pawning off its software as “fixed.” It is obvious this isn’t the case.
Yesterday, a report came out that indicated CEO Herbert Diess was interested in keeping the software fixes in-house and that he wasn’t interested in having some other company, whether it be another automaker or a tech company, fix the issues they were encountering. It doesn’t seem like a great idea to push the software problems onto another company, especially if Volkswagen attempts to set the precedent that it is a leader in electric powertrains and EV manufacturing. The only real way to establish any sort of narrative that proves your worthiness in this sector is to solve things yourself, it seems. If Tesla had given its software issues early on to Apple or Microsoft, for example, to fix, you can bet they wouldn’t be looked at as some automotive marvel. They’d just be another company out there trying to establish a presence in a quickly growing field of EV competitors. The vertical integration that Tesla has been able to display, through not only its hardware but also through its development of software. The complete expertise in software especially is advantageous in the event of Software Updates being rolled out in an Over-the-Air fashion as Tesla does. When even the smallest bug or issue is revealed in the coding, engineers can quickly solve the problem and roll out a new update in a matter of minutes.
Diess is right, it is absolutely imperative that Volkswagen solves these issues in-house. However, there needs to be more consistency in the story that is being portrayed, in my opinion. For the past year, we’ve heard that Volkswagen has admitted Tesla has a 10-year advantage, then the ID.3 software issues were worse than initially reported, then that software was so bad it had moved onto other vehicles.
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Then, all of a sudden, Volkswagen suddenly made Markus Duesmann, the ICE-supportive CEO of Audi, the person responsible for solving the software issues. Finally, the company came out in December and claimed that it had overcome all of the issues it had with the ID. family’s software.
It all seems like a plan to save face, and it should be. Volkswagen has held this reputation for years for making quality gas cars. Apart from the Dieselgate scandal, which inevitably tarnished the reputation of the company, Volkswagen has done a reasonably good job of creating cars that are dependable. My first car was a Volkswagen with 198,000 miles on it. It was dependable, and I was sad to see it go when I finally had to say goodbye.
However, it is quite alarming to see that Volkswagen is still years away from solving these issues. For a year, there have been so many different narratives regarding the company’s software, and it seems like a cause that perhaps just needs more time. There is no doubt in the world that they can figure it out eventually, but is it worth keeping the faith for five or ten more years? Is it worth waiting until 2025, 2030, or even longer to have effective electric vehicle software just to say “We developed it ourselves!”
It seems like the big issue coming to fruition now is the fact that Volkswagen has set another narrative forward that it will be ready to deliver software updates this Summer. All I have to say is, the electric vehicle community has a great memory, they are very unforgiving, and they don’t want to hear excuses. If Volkswagen cannot figure out a way to develop effective software for its vehicles by the Summer, roll out OTA updates, and provide proof that its vehicles are worth a damn, it may be time to consider other options.
Diess has a great relationship with Elon Musk, and it may not be too late to consider seeking help from Tesla in this sense. I don’t think it would be the worst thing in the world to have a guy who is your friend and the CEO of the most successful EV company in the world help your company solve some issues. Volkswagen would gain plenty of credibility with Tesla’s software infrastructure if it chooses to go that way. I hope they can somehow solve the issues in-house, but I am more prone to believe that if things don’t come around this Summer like VW has promised with the OTA updates, it will be a bad look once again, and VW could remain the laughing stock of the EV industry.
“If we want to retain our independence, we have to be able to develop the software in the car ourselves. This is the only way for us to guarantee long-term success,” Diess said. Is that a hill VW is willing to die on?
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What is Digital Optimus? The new Tesla and xAI project explained
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.
This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.
xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.
When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.
Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.
Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.
It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.
Oh and it works in all AI4-equipped cars, so your car can do office work for you when not driving.
We’re also deploying millions of dedicated Digital Optimus units in the field at Superchargers where we have ~7 gigawatts of available power.
— Elon Musk (@elonmusk) March 12, 2026
Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.
By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.
As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.
In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.
It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.
News
Tesla adds awesome new driving feature to Model Y
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla writes in the release notes for the feature:
“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”
🚨 Tesla has added a new “Comfort Braking” update with 2026.8
“Your Tesla provides a smoother feel as you come to a complete stop during routine braking.” https://t.co/afqCpBSVeA pic.twitter.com/C6MRmzfzls
— TESLARATI (@Teslarati) March 13, 2026
Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.
There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.
This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.
Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.
Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.
We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.
News
Tesla finally brings a Robotaxi update that Android users will love
The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android.
Tesla is finally bringing an update of its Robotaxi platform that Android users will love — mostly because it seems like they will finally be able to use the ride-hailing platform that the company has had active since last June.
Based on a decompile of software version 26.2.0 of the Robotaxi app, Tesla looks to be ready to roll out access to Android users.
According to the breakdown, performed by Tesla App Updates, the company is preparing to roll out an Android version of the app as it is developing several features for that operating system.
🚨 It looks like Tesla is preparing to launch the Robotaxi app for Android users at last!
A decompile of v26.2.0 of the Robotaxi app shows some progress on the Android side for Robotaxi 🤖 🚗 https://t.co/mThmoYuVLy
— TESLARATI (@Teslarati) March 13, 2026
The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android:
“Strings like notification_channel_robotaxid_trip_name and android_native_alicorn_eta_text show exactly how Tesla plans to replicate the iOS Live Activities experience. Instead of standard push alerts, Android users are getting a persistent, dynamically updating notification channel.”
This is a big step forward for several reasons. From a face-value perspective, Tesla is finally ready to offer Robotaxi to Android users.
The company has routinely prioritized Apple releases because there is a higher concentration of iPhone users in its ownership base. Additionally, the development process for Apple is simply less laborious.
Tesla is working to increase Android capabilities in its vehicles
Secondly, the Robotaxi rollout has been a typical example of “slowly then all at once.”
Tesla initially released Robotaxi access to a handful of media members and influencers. Eventually, it was expanded to more users, so that anyone using an iOS device could download the app and hail a semi-autonomous ride in Austin or the Bay Area.
Opening up the user base to Android users may show that Tesla is preparing to allow even more users to utilize its Robotaxi platform, and although it seems to be a few months away from only offering fully autonomous rides to anyone with app access, the expansion of the user base to an entirely different user base definitely seems like its a step in the right direction.
What is Digital Optimus? The new Tesla and xAI project explained
Tesla adds awesome new driving feature to Model Y
