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BMW prepares Steyr plant for next-generation electric vehicles

BMW's Steyr, Austria Plant (Credit: BMW)

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Today, BMW has announced that it would be investing one billion euros (~$1,050,355,000) over the next three years into their Steyr, Austria power train plant in order to prep for electric vehicle production.

The Steyr plant has been a BMW power train manufacturing facility since 1973, and on the eve of the plant’s 50th anniversary, BMW will be investing 1 billion dollars into converting the plant to produce electric drive trains, what the brand calls its e-drive system. While the plant will still be producing gas and diesel power trains, they will have the goal of producing 600,000 e-drive systems by 2025. After 2025, the plant will be switching to produce BMW’s next generation of electric drive train there forward. The plant will complete its conversion by 2030 when it will be completely dedicated to producing electric drive trains.

This plant has developed and manufactured combustion engines for our BMW and MINI brands for more than 40 years. One out of every two BMW Group vehicles around the world today already has a ‘heart’ built in Steyr. From 2025, we will also develop and produce the next generation of e-drives here,” BMW AG Board of Management Member Milan Nedeljković said. “Years of experience and a wealth of drive train expertise make BMW Group Plant Steyr the ideal location for the sustainable mobility of the future.”

Much like the current internal combustion engine (ICE) drive trains produced in Steyr, all parts for the electric systems will be produced on site, including; battery, inverter, transmission, etc. While the conversion will account for most of the changes to the facility, the plant will also be expanding by 60,000 square meters (14.8 acres) in order to meet the demands of production. BMW stated that the plant will be a critical part of their production infrastructure as they attempt to build two million electric vehicles globally by 2025, including their new i4 and iX models.

Credit: BMW AG

This investment follows news that BMW would be working with Battery startup ONE Technologies on new battery chemistry technology, BMW’s partnership with CATL to produce batteries starting in 2025, and their iX ad from last year’s Super Bowl staring Arnold Schwarzenegger. This shows a different trend than what many expected after comments were made by CEO Oliver Zipse stating that premature phaseout of combustion engines could be detrimental.

It is no doubt that after the EU voted in favor of banning new ICE vehicles by 2035, the brand is now feeling the pressure to shift more quickly than they may have originally anticipated. Furthermore, other German brands have shown significantly faster dedication to electric mobility than their Bavarian counterparts, likely pushing BMW to act quickly to catch up.

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What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com.

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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SpaceX shades airline for seeking contract with Amazon’s Starlink rival

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Credit: Richard Angle

SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.

Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.

Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.

A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.

American CEO Robert Isom said (via Bloomberg):

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“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”

Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.

The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:

“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”

CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”

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There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.

SpaceX successfully launches 100th Starlink mission of 2025

Currently, the company is focusing on expanding into new markets, such as Africa and Asia.

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Tesla Model Y Standard stuns in new range test, besting its Premium siblings

Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.

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Credit: Tesla

The Tesla Model Y Standard stunned in a new range test performed by automotive media outlet Edmunds, besting all of its Premium siblings that are more expensive and more luxurious in terms of features.

Testing showed the Model Y Standard exceeded its EPA-estimated range rating of 321 miles, as Edmunds said it is the “longest-range Model Y that we’ve ever put on our loop.” In the past, some vehicles have come up short in comparison with EPA ranges; for example, the Model Y’s previous generation vehicle had an EPA-estimated range of 330 miles, but only drove 310.

Additionally, the Launch Series Model Y, the first configuration to be built in the “Juniper” program, landed perfectly on the EPA’s range estimates at 327 miles.

It was also more efficient than Premium offerings, as it utilized just 22.8 kWh to go 100 miles. The Launch Series used 26.8 kWh to travel the same distance.

It is tested using Edmunds’ traditional EV range testing procedure, which follows a strict route of 60 percent city and 40 percent highway driving. The average speed throughout the trip is 40 MPH, and the car is required to stay within 5 MPH of all posted speed limits.

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Each car is also put in its most efficient drive setting, and the climate is kept on auto at 72 degrees.

“All of this most accurately represents the real-world driving that owners do day to day,” the publication says.

With this procedure, testing is as consistent as it can get. Of course, there are other factors, like temperature and traffic density. However, one thing is important to note: Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.

Tesla Model Y Standard vs. Tesla Model Y Premium

Tesla’s two Model Y levels both offer a great option for whichever fits your budget. However, when you sit in both cars, you will notice distinct differences between them.

The Premium definitely has a more luxurious feel, while the Standard is stripped of many of the more premium features, like Vegan Leather Interior, acoustic-lined glass, and a better sound system.

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You can read our full review of the Model Y Standard below:

Tesla Model Y Standard Full Review: Is it worth the lower price?

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Xpeng CEO: Tesla FSD 14.2 has developed “near-Level 4” performance

While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities.

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Credit: Grok Imagine

Xpeng CEO He Xiaopeng has offered fresh praise for Tesla’s Full Self-Driving (FSD) system after revisiting Silicon Valley more than a year after his first hands-on experience. 

Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.

Tesla FSD closing in on Level 4 driving

During his visit, He test-drove a Tesla equipped with FSD V14.2. He also rode in a Tesla Robotaxi. Over roughly five hours of driving across Silicon Valley and San Francisco, He said both vehicles delivered consistent and reassuring performance, a notable improvement from his experience a year earlier.

According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, allowing users to bypass intermediate autonomy stages and move closer to Level 4 functionality.

He previously tested Tesla’s FSD V12.3.6 and Waymo vehicles in California in mid-2024, noting at the time that Waymo performed better in dense urban environments like San Francisco, while Tesla excelled in Silicon Valley and on highways.

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Xpeng’s ambitious autonomy roadmap and internal challenge

The Silicon Valley visit also served as a benchmark for Xpeng’s own autonomy ambitions. He stated that Xpeng is looking to improve its VLA autonomous driving system to match the performance of Tesla’s FSD V14.2 within China by August 30, 2026. Xpeng is poised to release its VLA 2.0 smart driving software next quarter, though He cautioned that the initial version will not be able to match FSD V14.2’s capabilities, as noted in a CNEV Post report.

He also added a personal twist to the goal, publicly challenging Xpeng’s autonomous driving team. If the performance target is met by the 2026 deadline, the CEO stated that he will approve the creation of a Chinese-style cafeteria for Xpeng’s Silicon Valley team. If not, Liu Xianming, head of Xpeng’s autonomous driving unit, has pledged to run naked across the Golden Gate Bridge, He noted.

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