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German auto industry wary of EV innovations inspired by Tesla
More than 300 high-ranking representatives of the German automotive industry gathered in Berlin recently to hear the President of the German Association of the Automotive Industry (VDA) express firm views that “the calls to ban combustion engines are becoming louder.”
VDA President Matthias Wissmann explained that the German automotive industry has already invested 14 billion euros in electric mobility, and, with 30 electric models in series production, it is currently one of the world’s leading providers of electric mobility. Electric mobility is an important component for achieving climate targets, reducing emissions of pollutants, and lowering CO2. The VDA expects that the country’s automotive manufacturers will more than triple the number of electric vehicle models to nearly 100 by 2020 as battery costs decline and electric ranges increase toward 500 km. That will edge closer to the distances gasoline and diesel cars can travel on a single tank.
Wissman warned that, if energy policy follows developments, both passenger cars and commercial vehicles would need to adhere to increased regulations and automakers would have to engage in some serious self-examination. “This industry is not start-up company that can constantly procure fresh funding despite persistent losses,” he said in a remark likely directed at Tesla. “Today we can imagine that in 2025, 15 to 25 percent of new passenger car registrations worldwide could be electric vehicles. The trend is accelerating – just a short while ago experts thought a share of only 3 percent was more likely. Every fourth or fifth new car sold will then have an electric drive.” Tesla, it must be noted, paid back its Department of Energy loan nine years early.
The German car industry is investing 40 billion euros in alternative drivetrains. This amount includes research and development expenditures as well as assets such as equipment and tools for production. Late last month BMW, Daimler, and the Volkswagen Group were among European automakers that signed a declaration of intent to start next year with the construction of a quick charging network for electric cars based on the CCS standard. Of course, Tesla has also joined the CharIN group, which created and promotes the CCS charging standard commonly found on the SAE-Combo plug.
The German automotive industry has recently intensified research and development activities in the fields of digitization and connected driving. Instead of having “to worry about the new competition,” Wissman said the German automotive industry aims to be right at the forefront of developments. These were more lightly-veiled references to Tesla Motors, Inc., with its Model S now performing as the best selling luxury car in Western Europe, accelerating past traditional high-status and internal combustion engine powered favorites like the Mercedes S class, BMW 7 Series, Audi A8, and Porsche Panamera. Wissman also affirmed that European automakers could not switch immediately to electric vehicles and eliminate combustion engines from their catalogs, as they employ hundreds of thousands of workers around the world – many of which build diesel and gasoline engines.
To accelerate the evolution toward innovative automotive methods, Wissman described how the German automotive industry is now working intensively on new mobility concepts that generate totally new business models. “This trend arises from a rapidly changing expectation on the part of customers, who no longer demand just a product, but instead a mobility service,” Wissmann said. “In addition, completely new players are appearing on the market, such as large IT corporations. We take this challenge seriously, and are also tackling it.”
The VDA recognizes that increased efficiency, recycling, and a reduction in emissions benefit both companies and consumers as is preserving natural resources is an integral part of national and European regulation. They note on their website that, according to figures published in the national Inventory Report of the German Environmental Agency, CO₂ emissions produced by road traffic in Germany from 1999 to 2012 dropped by about 30 million metric tons. “In the last ten years the average fuel consumption by newly registered passenger cars in the EU has been brought down by over one quarter, and CO2 emissions have fallen in parallel,” Wissman noted. “The potential has not yet been exhausted. We expect that in the next few years we can increase the efficiency of gasoline and diesel vehicles by at least another 10 to 15 percent.”
Since 2006, German road traffic CO₂ emissions have been below 1990 levels for the seventh successive year and are around 5 million metric tons less than the 1990 figure. No other Western European country has so far succeeded on a sustained basis in reducing road traffic CO₂ emissions below the level of 1990, according to the VDA. German automakers’ shifts to more fuel-efficient and carbon-reducing vehicles, however, can only help reduce these levels further.
SpaceX is preparing for the 13th integrated flight test of its Starship system, with a targeted launch as early as Thursday, July 16. The 90-minute launch window opens at 5:45 p.m. CT from Starbase in South Texas.
This comes roughly seven weeks after Flight 12 on May 22, underscoring the company’s accelerating pace in its rapid development campaign. The mission will use the latest Starship and Super Heavy V3 vehicles equipped with Raptor 3 engines. Booster 20 will attempt a controlled boostback burn, followed by a splashdown in the Gulf of Mexico, while Ship 40 will follow a suborbital trajectory.
Starship’s thirteenth flight test is preparing to launch as early as Thursday, July 16 → https://t.co/Rp7VwBzpWx pic.twitter.com/jdpFlQUEpF
— SpaceX (@SpaceX) July 11, 2026
Key objectives for Flight 13 will include demonstrating reliable stage separation, engine performance under various conditions, and controlled reentry.
A major milestone for Flight 13 is the first deployment of 20 next-generation Starlink V3 satellites. These satellites feature advanced laser links for inter-satellite communication, deployable solar arrays, and onboard cameras, six of which will capture imagery of Starship’s heat shield during flight.
Several heat shield tiles on Ship 40 will be painted white to serve as imaging targets, while additional experiments test upgraded tiles on aft flaps, modified attachments on the aft skirt, and load-sensing tiles to measure stresses. The upper stage will also attempt a single Raptor engine relight in space before a targeted splashdown in the Indian Ocean.
These tests build directly on lessons from Flight 12, which introduced the V3 configuration but encountered issues including a booster flip anomaly during boostback and an engine-out event on the ship. Hardware and software modifications on Booster 20 and Ship 40 aim to improve engine relight reliability, startup sequencing, and overall robustness.
Next Starship launch aiming for Thursday https://t.co/SajPPd4pdb
— Elon Musk (@elonmusk) July 12, 2026
The short interval between Flights 12 and 13 highlights SpaceX’s iterative approach. Elon Musk has repeatedly emphasized that Starship launches will become “incredibly common” in the coming years.
The company envisions scaling to rates as high as one launch per hour within 4-5 years, potentially enabling thousands of flights annually. Such cadence is essential for Starship’s goals: establishing orbital refueling for lunar and Mars missions, deploying massive satellite constellations, and making life multiplanetary.
With each flight, Starship edges closer to full reusability and operational maturity. Success on July 16 would mark another step toward routine access to space and the ambitious vision of humanity becoming a spacefaring civilization.
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
SpaceX reveals Starship Flight 13 launch date
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
