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BMW exec commits to diesel, says electro-mobility discussions are “a little bit irrational”
In a rather surprising announcement, BMW AG board member Klaus Froehlich noted the German automaker is looking to keep diesel-powered vehicles in its portfolio. The BMW executive further stated that while the company is laying the foundations for electrification, he believes that the ongoing discussions about electro-mobility are “a little bit irrational.”
Froehlich’s statements were related to Australian journalists who were present at the 2018 Paris Motor Show, which was held from October 4-15. While speaking with the journalists, the BMW exec noted that the transition to electro-mobility might not happen as quickly as some industry experts would suggest. The BMW board member also expressed his disdain at European politicians, who are currently panning diesel, particularly in the aftermath of Volkswagen AG’s high-profile Dieselgate scandal.
“The diesel development from BMW perspective is quite dramatic. We have, I think, more or less the best diesels. All test show that we have the lowest emissions. We have a spiral in Europe where every politician sees only one solution – diesel bashing. From a CO2 and customer perspective, a modern diesel is a very good solution. Especially for heavy, high-performing cars,” Froehlich said.
The exec did admit that BMW would likely have fewer diesel offerings in the coming years. That said, Froehlich stated that he remains “very optimistic” about the future of diesel engines, as well as the internal combustion engine as a whole. Even with the shift towards electrified vehicles, the BMW board member noted that traditional engines would continue to be used well into the future.
“A very optimistic scenario says 30% of BMWs will be pure electric or plug-in hybrids and 7% will be combustion. If you assume that, from this 30%, half of them are plug-in hybrids – I have 85% in my portfolio in 2030 with a combustion engine. Russia, Australia, a large portion of the world – they will have combustion engines for a very long time,” he said.
This does not mean to say that BMW is not investing in electrification. The BMW board member noted that the German automaker has already purchased cobalt and lithium for its electro-mobility initiatives. BMW is also preparing battery farms and systems for grid stabilization. Despite this, Froehlich pointed out that ultimately, the discussions going on about the electrification of vehicles might be too optimistic.
“I think the discussion about electro-mobility is a little bit irrational,” he said.
The BMW executive’s affirmation of the automaker’s commitment to its diesel engines stands in stark contrast to Porsche’s announcement last month, when the legacy automaker revealed that it would be discontinuing its diesel-powered vehicles. Oliver Blume, chief executive of Porsche, noted that the company is not “demonizing” diesel in any way – it is simply committing to the electrification of its fleet.
“(Diesel) is, and will remain, an important propulsion technology. We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free,” Blume said.
Legacy carmaker Jaguar could actually end up outdoing Porsche’s commitment to becoming diesel-free. According to recent reports, Jaguar Land Rover executives are reportedly looking into transitioning Jaguar into an all-electric brand. Provided that India-based parent company Tata Motors approves the transition, the automaker could release an all-electric Jaguar XJ within the next two years, which would likely compete against the Porsche Taycan and the Tesla Model S in the luxury sedan segment.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
Tesla Vice President of Vehicle Engineering, Lars Moravy, recently revealed the company has thought about introducing a Plaid powertrain on the Model 3, but there could be some challenges involved.
On the Ride the Lightning podcast, Moravy revealed that he thinks about a Plaid Model 3 “all the time,” and it certainly has a place in Tesla’s potential lineup of future vehicles.
Now that the Plaid powertrain is technically defunct due to the newfound absence of the Model S and Model X, Tesla could find a way to reintroduce the lightning-quick trim level to its mass-market vehicles.
But there are going to be some challenges with it. Moravy said that the Model 3 Plaid would likely adopt the carbon-sleeved motors that the Model S Plaid had. However, packaging would be a major challenge, as Moravy said on the podcast, it would be a “tight engineering squeeze.”
It’s important to note that there are no active production plans for the Model 3 Plaid at this point, but it’s also worth noting that with the Model S and Model X Plaid no longer available, Tesla would likely be willing to introduce something that is even more white-knuckle than the Model 3 Performance, which already boasts a 2.9-second 0-60 MPH acceleration rate and a top speed of 163 MPH.
Of course, there is the Roadster, but we don’t know when that will exactly make it to market, and we know that, for sure, it will not be accessible to many.
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Tesla has prided itself in building some of the best cars out there, but they’re also interested in building cars that are simply fun to be in.
A Plaid Model 3 could truly push the limits and could end up being one of the best cars Tesla will ever build, especially if it can shave off at least half of a second from its 0-60 MPH time and increase its top speed slightly.
More than anything, the real changes will be in the ride and aerodynamics. Tesla improving things like the suspension, handling, and downforce will be the true trademarks of its Plaid powertrain; putting it in the Model 3 could be a great move for the company and for customers interested in high-end performance.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Tesla’s dedicated Optimus factory construction officially underway at Giga Texas
