News
BMW and VW says Tesla’s Grohmann Engineering must fulfill past contractual obligations
BMW and VW are pushing back against the newly formed partnership between Tesla and Grohmann Engineering amid reports that the Silicon Valley automaker has requested Grohmann to cease work on existing customers, as it pushes to bring Model 3 to market in July.
Recently publicized spats over wages and benefits arising from fears over job instability from Grohmann’s 700 employees, and reported clashes between Grohmann founder and Tesla Chief Elon Musk, has led to strong tensions behind closed doors. BMW and VW claim that the rebranded Tesla Grohmann Automation has sent mixed messages about its intentions, yet Germany’s largest automakers continue to take a strong stance and asking Grohmann to fulfill its contractual obligations.
However, a report from German publication Wirtschaftswoche indicates that Grohmann’s work counselor Uwe Herzig said (via Google Translate) that “the workload caused by new Tesla projects was so great that it has only been working on Tesla projects for a few weeks.”
It is clear that a competitor buying up a key supplier is cause for concern, but at this point what is not clear is whether or not Tesla has failed to fulfill any of its contractual obligations. BMW and VW have both gone on record stating that they both expect the new Tesla Grohmann Automation unit to fulfill existing contracts.
While the short-term pressure is causing tension for Tesla and headaches for its entrenched competition in Germany, Tesla is confident that there is a bright future for Grohmann. A Tesla spokeswoman (via Google Translate) shared that the company is confident that Tesla Grohmann Automation will “grow significantly over time, despite concentration on internal orders.”
Beyond just retaining existing employees, Tesla Grohmann has flooded the local market with job advertisements even going so far as to hire headhunters to find skilled workers, according to local reports. One of the job descriptions for an Engineer can be seen on Tesla’s careers page, listed below.
Engineer
Department: Engineering
Location: Prüm, Germany
Req. ID44211
Job Type: Perm Eu
Supercharge your career!
We are hiring world-class Engineering talent to help us build the machine that builds the machine. Looking for excellence in Electrical/Mechanical/Automation Engineering and other technical disciplines. A passion for technically complex tasks and problem solving is essential.
Tesla is committed to hiring and developing top talent from across the world for any given discipline. Our world-class teams operate with a non-conventional product development philosophy of high inter-disciplinary collaboration, flat organizational structure, and technical contribution at all levels. You will be expected to challenge and to be challenged, to create, and to innovate. These jobs are not for everyone; you must have a genuine passion for solving some of the most challenging problems in the world.
Wir suchen Weltklasse-Ingenieure, die uns dabei helfen, die Maschine zu entwickeln, die die Maschine baut. Gesucht wird nach exzellenten Experten für Elektrotechnik / Maschinenbau / Automatisierungstechnik und anderen technischen Disziplinen. Besonders wichtig ist die Leidenschaft für technisch komplexe Aufgaben und der Wille Probleme zu lösen.
Tesla sucht weltweit Toptalente aus den unterschiedlichsten Bereichen, die sich weiterentwickeln möchten. Unsere Weltklasseteams arbeiten im Rahmen einer unkonventionellen Entwicklungsphilosophie, die auf enge fachübergreifende Zusammenarbeit setzt. Flache Hierarchien und intensiver technischer Austausch auf allen Ebenen sind weitere Merkmale. Wir erwarten, dass Sie genau so herausfordern wie Sie Herausforderungen annehmen, um Neues zu konzipieren und zu schaffen. Diese Aufgabe nicht für jeden geeignet. Sie müssen die unbedingte Leidenschaft haben einige der schwierigsten Probleme der Welt zu lösen.
Wir freuen uns auf Ihre Bewerbung!
News
Tesla tops American-Made Index for sixth-consecutive year
Tesla is atop the American-Made Index from Cars.com for the sixth-straight year, as the Model 3 and Model Y took the top two spots, respectively.
Last year, the Model 3, Model Y, Model S, and Model X took the top four spots, respectively. The company has routinely performed well in the Index. However, Tesla discontinued its flagship Model S and Model X earlier this year, which took the two cars out of the ranking.
Cybertruck is not considered due to its curb weight being above the 8,500-pound threshold, which eliminates it from being required to have more detailed assembly information.
Cars.com uses five main categories to develop its rankings:
- Location(s) of final assembly
- Percentage of U.S. and Canadian parts
- Countries of origin for all available engines
- Countries of origin for all available transmissions
- U.S. manufacturing workforce
These five major factors are then put into a 100-point scale. The vehicles with the highest scores sit atop the list. The Model 3 edged out the Model Y.
🇺🇸 The Tesla Model 3 and Tesla Model Y have been put atop the American-Made Index from https://t.co/PXZ0g1pPb6, meaning they are the most American vehicles you can possibly buy.
This is the SIXTH-STRAIGHT year a Tesla has been listed as the most American-made vehicle: pic.twitter.com/HyraOmaxSL
— TESLARATI (@Teslarati) June 23, 2026
Tesla uses a strong domestic strategy to build its cars and parts domestically. It relies on intense vertical integration that reduces its dependence on global suppliers, keeping more value and jobs in the United States.
This strategy has helped Tesla gain a strong reputation for domestically produced vehicles and parts. However, it helps it with more than just awards like this one. Keeping a supply chain local has also helped insulate Tesla more than others from tariffs and supply chain disruptions.
This year’s American-Made Index from Cars.com studied nearly 400 vehicles from the 2026 model year. Tesla was the only manufacturer to have an EV inside the Top 10. The Kia EV9 was the next EV to make the list, scoring the 17th position.
The Hyundai IONIQ 5 was 21st, and the final EV to make the list was the Cadillac LYRIQ in 77th.
Elon Musk
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.
CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.
Musk said:
“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”
Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”
He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”
Yup. In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area. They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash.
— Ashok Elluswamy (@aelluswamy) June 22, 2026
Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.
The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.
Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”
Tesla alleged “driverless” crash in Texas: What is known so far
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.
This appears to be a similar situation. However, an investigation will prove what happened for sure.
Investor's Corner
SpaceX makes $20 billion move to optimize its balance sheet
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.