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Daimler abandons internal combustion engine development to focus on EVs
In a rather surprising announcement, German automaker Daimler has revealed that it will be stopping its internal combustion engine development initiatives as part of its efforts to embrace electric vehicles.
The update was announced by Daimler development chief Markus Schaefer. According to a recent report from veteran German motoring magazine Auto Motor und Sport, Schaefer stated that Diamler’s primary focus will now be on electrification, particularly in the development of electric drives and batteries. The company’s resources being tapped for the development of internal combustion engines and transmission development will be reallocated.
The Daimler executive did not disclose the costs associated with the company’s decision to pursue electrification, though Schaefer remarked that the overall budget for research and development for EV technologies remains at a “high level.”
With this in mind, Daimler’s current generation of internal combustion engines, including the new inline six-cylinder engine for the E-Class, S-Class, and its SUVs, will likely be the last gas and diesel engines that the automaker will produce. The executive did state that the company’s outlook may still change, though for the meantime, the industry could be assured that Daimler will be focusing on electric vehicles instead of diesel and gasoline engines.
The implications of Daimler’s announcement are significant. The conglomerate, after all, includes long-haul truck maker Freightliner, which produces diesel-powered trucks. With this announcement in mind, it appears that Daimler is setting the stage for the eventual rollout of an all-electric truck, which could provide some healthy competition for companies such as Tesla, whose Semi is expected to enter production next year. With Freightliner breaching the market for electric trucks, the transportation sector’s transition towards electrification could very well see a boost.
Daimler’s announcement suggests that Das Auto has come to terms with the fact that the next generation of automobiles will be powered by electric powertrains. With companies such as Tesla proving that there is a real demand for electric vehicles that are powerful, attractive, and reasonably priced, veteran carmakers such as Daimler are practically forced to adapt to the increasing demand for EVs. Daimler’s German rivals appear to have acknowledged this, with Volkswagen releasing the ID.3, Audi coming out with the e-tron, and Porsche debuting the Taycan, its flagship electric car.
Overall, Daimler’s announcement comes at a rather ironic time for Mercedes-Benz, one of its brands. Just recently, Mercedes-Benz CEO Ola Källenius praised the rising sales of diesel in Europe. “The truth is that in most situations, diesels enjoy an economy benefit of 15-20% and in a lot of circumstances also lower NOx emissions than they are certified at. There is no rational reason today not to buy one if your driving profile suits its best use,” the CEO said.
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Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
The refreshed Tesla Model 3 has won the DRIVEN Car Guide AA Insurance NZ Car of the Year 2025 award in the Passenger Car category, beating all traditional and electric rivals.
Judges praised the all-electric sedan’s driving dynamics, value-packed EV tech, and the game-changing addition of Full Self-Driving (Supervised) that went live in New Zealand this September.
Why the Model 3 clinched the crown
DRIVEN admitted they were late to the “Highland” party because the updated sedan arrived in New Zealand as a 2024 model, just before the new Model Y stole the headlines. Yet two things forced a re-evaluation this year.
First, experiencing the new Model Y reminded testers how many big upgrades originated in the Model 3, such as the smoother ride, quieter cabin, ventilated seats, rear touchscreen, and stalk-less minimalist interior. Second, and far more importantly, Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
FSD changes everything for Kiwi buyers
The publication called the entry-level rear-wheel-drive version “good to drive and represents a lot of EV technology for the money,” but highlighted that FSD elevates it into another league. “Make no mistake, despite the ‘Supervised’ bit in the name that requires you to remain ready to take control, it’s autonomous and very capable in some surprisingly tricky scenarios,” the review stated.
At NZ$11,400, FSD is far from cheap, but Tesla also offers FSD (Supervised) on a $159 monthly subscription, making the tech accessible without the full upfront investment. That’s a game-changer, as it allows users to access the company’s most advanced system without forking over a huge amount of money.
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Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out.
It appears that the Tesla AI team burned the midnight oil, allowing them to release FSD V14.2.1 on Thanksgiving. The update has been reported by Tesla owners with AI4 vehicles, as well as Cybertruck owners.
For the Tesla AI team, at least, it appears that work really does not stop.
FSD V14.2.1
Initial posts about FSD V14.2.1 were shared by Tesla owners on social media platform X. As per the Tesla owners, V14.2.1 appears to be a point update that’s designed to polish the features and capacities that have been available in FSD V14. A look at the release notes for FSD V14.2.1, however, shows that an extra line has been added.
“Camera visibility can lead to increased attention monitoring sensitivity.”
Whether this could lead to more drivers being alerted to pay attention to the roads more remains to be seen. This would likely become evident as soon as the first batch of videos from Tesla owners who received V14.21 start sharing their first drive impressions of the update. Despite the update being released on Thanksgiving, it would not be surprising if first impressions videos of FSD V14.2.1 are shared today, just the same.
Rapid FSD releases
What is rather interesting and impressive is the fact that FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out. This bodes well for Tesla’s FSD users, especially since CEO Elon Musk has stated in the past that the V14.2 series will be for “widespread use.”
FSD V14 has so far received numerous positive reviews from Tesla owners, with numerous drivers noting that the system now drives better than most human drivers because it is cautious, confident, and considerate at the same time. The only question now, really, is if the V14.2 series does make it to the company’s wide FSD fleet, which is still populated by numerous HW3 vehicles.
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Waymo rider data hints that Tesla’s Cybercab strategy might be the smartest, after all
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota Connected Europe designer Karim Dia Toubajie has highlighted a particular trend that became evident in Waymo’s Q3 2025 occupancy stats. As it turned out, 90% of the trips taken by the driverless taxis carried two or fewer passengers.
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota designer observes a trend
Karim Dia Toubajie, Lead Product Designer (Sustainable Mobility) at Toyota Connected Europe, analyzed Waymo’s latest California Public Utilities Commission filings and posted the results on LinkedIn this week.
“90% of robotaxi trips have 2 or less passengers, so why are we using 5-seater vehicles?” Toubajie asked. He continued: “90% of trips have 2 or less people, 75% of trips have 1 or less people.” He accompanied his comments with a graphic showing Waymo’s occupancy rates, which showed 71% of trips having one passenger, 15% of trips having two passengers, 6% of trips having three passengers, 5% of trips having zero passengers, and only 3% of trips having four passengers.
The data excludes operational trips like depot runs or charging, though Toubajie pointed out that most of the time, Waymo’s massive self-driving taxis are really just transporting 1 or 2 people, at times even no passengers at all. “This means that most of the time, the vehicle being used significantly outweighs the needs of the trip,” the Toyota designer wrote in his post.
Cybercab suddenly looks perfectly sized
Toubajie gave a nod to Tesla’s approach. “The Tesla Cybercab announced in 2024, is a 2-seater robotaxi with a 50kWh battery but I still believe this is on the larger side of what’s required for most trips,” he wrote.
With Waymo’s own numbers now proving 90% of demand fits two seats or fewer, the wheel-less, lidar-free Cybercab now looks like the smartest play in the room. The Cybercab is designed to be easy to produce, with CEO Elon Musk commenting that its product line would resemble a consumer electronics factory more than an automotive plant. This means that the Cybercab could saturate the roads quickly once it is deployed.
While the Cybercab will likely take the lion’s share of Tesla’s ride-hailing passengers, the Model 3 sedan and Model Y crossover would be perfect for the remaining 9% of riders who require larger vehicles. This should be easy to implement for Tesla, as the Model Y and Model 3 are both mass-market vehicles.
