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.
A big thanks to our long-time supporters and new subscribers! Thank you.
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
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?
On behalf of the entire Teslarati team, we’re working hard behind the scenes on bringing you more personalized members benefits, and can’t thank you enough for your continued support!
News
Tesla offers interesting promo to future ride-hailing rival’s drivers
Lyft drivers will get $1,000 in vehicle credits if they complete 100 rides by the cutoff date for the promo.
Tesla has offered an interesting promotion for its vehicles to the drivers of one of its future ride-hailing rivals as it continues to work toward the launch of its autonomous Robotaxi platform.
This morning, Tesla launched a $1,000 off promotion to Lyft drivers who plan to utilize one of the company’s EVs for ride-hailing purposes. The promo applies to all five Tesla models: the Model S, Model 3, Model X, Model Y, and Cybertruck.
It is not offered at the point of sale. Instead, to ensure the vehicle is properly utilized for ride-hailing purposes and to prove the discount, Tesla will offer $1,000 in vehicle credits to the Lyft driver after they complete 100 trips on or before July 13, 2025. Delivery must be taken by June 30.
🚨 Tesla is offering $1,000 off for those who purchase a vehicle for Lyft purposes! https://t.co/ND9sKiykMW pic.twitter.com/AP8tSP1cbN
— TESLARATI (@Teslarati) May 16, 2025
It is an interesting move by Tesla because Lyft, along with Uber, will become a rival in the coming years as the companies continue to develop driverless ride-hailing platforms of their own. Lyft has partnered with May Mobility and Mobileye to develop driverless, fully autonomous vehicles purpose-built for ride-hailing.
Tesla plans to launch its Robotaxi platform next month in Austin, Texas.
Meanwhile, Lyft’s plans are more down the road. Earlier this year, the company said it would launch autonomous rides sometime next year.
For now, the move seems to be just another way Tesla is incentivizing consumers to buy one of their vehicles. Earlier this week, it also launched another $1,000 off promo for teachers, students, retirees, active-duty members, their spouses, and surviving spouses.
Previously, Tesla only offered that discount to military members.
It is unclear why Tesla would be offering these discounts, but it could be more of a thank you or an act of recognition, more than anything. If it were a measure that was taken to increase demand, it would be substantially more of a discount. For example, when Tesla was trying to rid its inventory of legacy Model Y units as the new, updated vehicle was set to be released, discounts were over $5,000.
News
Tesla Giga Berlin seems to be using FSD Unsupervised to move Model Y units
Tesla may be doing something quite special in the Giga Berlin-Brandenburg complex.
Tesla may be doing something quite special in the Giga Berlin-Brandenburg complex. Based on observations from a recent drone flyover of the site, it appears that Tesla may also be using FSD Unsupervised to move freshly produced Model Y vehicles to the factory’s staging area.
New Drone Footage
Recent footage of the Giga Berlin complex from longtime Tesla watcher Tobias Lindh included several interesting updates around the Model Y factory. These include a new warehouse that is currently being built, as well as a tunnel is currently being constructed. More interestingly, the drone operator observed that some cars now seem to be moving to Giga Berlin’s distribution area without human drivers.
If the drone operator’s observations prove accurate, it would be quite an impressive accomplishment for Tesla. FSD Unsupervised, after all, has only been confirmed in vehicles that are produced at the Fremont Factory and Gigafactory Texas.
Potential Next Steps
If Giga Berlin is now using FSD Unsupervised to transport some Model Y units from the factory building to the site’s staging area, it might only be a matter of time before Tesla also implements a similar system for Gigafactory Shanghai. The Shanghai-based Tesla plant, after all, is the company’s largest factory by volume, and it also serves as a primary vehicle export hub. FSD Unsupervised could then pave the way for Giga Shanghai to operate in an even more optimal manner.
FSD Unsupervised is the cornerstone of Tesla’s robotaxi business, which is expected to start rolling out in Austin, Texas, next month. Previous reports have suggested that Tesla is pushing hard in its preparations to roll out its robotaxi service this June. Tesla has reportedly even worked and trained with Austin’s first responders from the fire and police departments as part of its robotaxi service preparations.
Check out a recent flyover of the Tesla Giga Berlin complex in the video below.
Investor's Corner
Tesla welcomes Chipotle President Jack Hartung to its Board of Directors
Tesla announced the addition of its new director in a post on social media platform X.
Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.
Tesla announced the addition of its new director in a post on social media platform X.
Jack Hartung’s Role
With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.
Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.
“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.
Tesla Board and Musk
Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.
More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.
-
News2 weeks agoTesla offers legacy Model Y owners an interesting promotion
-
News1 week agoTesla Cybertruck Range Extender gets canceled
-
Elon Musk22 hours agoTesla seems to have fixed one of Full Self-Driving’s most annoying features
-
Lifestyle1 week agoAnti-Elon Musk group crushes Tesla Model 3 with Sherman tank–with unexpected results
-
News1 week agoStarlink to launch on United Airlines planes by May 15
-
Lifestyle2 weeks agoTesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp
-
Elon Musk2 weeks agoTesla says it denied Musk CEO replacement report before it was published
-
News2 weeks agoT-Mobile’s Starlink cellular doubles as free 5G trial for rival users