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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.
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Tesla counters Norway’s VAT hike with dedicated consumer bonus
The move follows Tesla Norway’s stunning finish in 2025, where the company saw substantial sales during the final weeks of the year.
Tesla has rolled out a price incentive in Norway, effectively offsetting a notable VAT increase that hit electric vehicle buyers at the start of 2026.
The move follows Tesla Norway’s stunning finish in 2025, where the company saw substantial sales during the final weeks of the year.
A “Tesla bonus”
Once the VAT increase kicked in at the start of 2026, Tesla Norway’s sales cooled almost immediately, as noted in a CarUp report. Tesla’s response was swift, with the electric vehicle maker rolling out what it calls a “Tesla bonus.”
This bonus effectively cuts prices by up to 50,000 kronor across eight model variants. All versions of the Tesla Model Y qualify for the incentive, along with most Tesla Model 3 trims, save for the base entry-level model.
This means that for Tesla Norway’s best-selling vehicles, the bonus effectively restores pricing to pre-VAT levels. This blunts the impact of the new tax and makes Tesla’s vehicle offerings competitive again in Europe’s most EV-saturated market.
Stabilizing demand
In addition to the “Tesla bonus,” the electric car maker is also offering a promotional interest rate for up to three years, with terms varying by model. The incentive applies to orders placed between January 9 and March 31, 2026, with delivery required by the end of the first quarter.
The stakes are high in Norway, where electric vehicles dominate new-car registrations. From the vehicles that were sold in 2025, 96% of new cars sold were fully electric. And from this number, Tesla and its Model Y made their dominance felt. This was highlighted by Geir Inge Stokke, director of OFV, who noted that Tesla was able to achieve its stellar results despite its small vehicle lineup.
“Taking almost 20% market share during a year with record-high new car sales is remarkable in itself. When a brand also achieves such volumes with so few models, it says a lot about both demand and Tesla’s impact on the Norwegian market,” Stokke stated.
Elon Musk
SpaceX gains favor as Pentagon embraces Musk-style defense reform
The remarks highlighted Musk’s improving relationship with the White House, as well as SpaceX’s growing role in U.S. defense.
SpaceX emerged as a clear beneficiary of the Trump administration’s renewed push to accelerate military innovation, as Defense Secretary Pete Hegseth openly praised Elon Musk’s private space enterprise during a visit to the company’s Starbase launch site in Texas.
The remarks highlighted Musk’s improving relationship with the White House, as well as SpaceX’s growing role in U.S. defense.
Hegseth embraces Elon Musk’s pace
Speaking at SpaceX’s Starbase facility in Brownsville, Texas, Hegseth criticized what he described as a “risk-averse culture” among traditional defense contractors and called for faster innovation modeled after Musk’s approach. He confirmed that the Department of Defense plans to integrate Musk’s Grok AI platform into Pentagon systems, which is part of the administration’s efforts to make the U.S. military an “AI-first warfighting force.”
Hegseth stated that the Pentagon intends to deploy AI models across both classified and unclassified networks, signaling a willingness to push past earlier efforts to limit military use of artificial intelligence. His comments aligned closely with President Donald Trump’s recent call for a $500 billion increase in defense spending, Bloomberg News noted. Trump has also warned major contractors that slower production and shareholder-focused practices could put future contracts at risk.
While Hegseth criticized legacy defense firms, SpaceX was held up as an example of how aggressive timelines, vertical integration, and iterative development could reshape defense strategies. “We need to be blunt here; we can no longer afford to wait a decade for our legacy prime contractors to deliver a perfect system. Winning requires a new playbook. Elon wrote it with his algorithm: question every requirement, delete the dumb ones and accelerate like hell,” Hegseth said.
SpaceX’s expanding defense role comes into focus
SpaceX has become one of the U.S. government’s most important aerospace partners. The company holds roughly $4 billion in NASA contracts to develop Starship into a lunar lander, while also serving as a key launch provider for sensitive national security payloads using its Falcon 9 and Falcon Heavy rockets.
During the visit, Musk highlighted that his ambitions extend beyond defense contracts, reiterating long-term goals of interplanetary travel and eventual exploration beyond the solar system. Still, the optics of the event reinforced how closely SpaceX’s capabilities now align with U.S. strategic priorities.
The appearance also marked another step in Musk’s political rehabilitation after a public falling-out with the White House last year. Since leaving his role leading the Department of Government Efficiency, Musk has gradually reengaged with the administration, reconnecting with U.S. President Donald Trump during slain conservative activist Charlie Kirk’s tribute and attending events at the White House. Trump’s also recently suggested that Starlink could help restore internet access in Iran.
Tesla has launched a new Model Y configuration in the “Premium” trim, and it comes with three highly requested features that have launched in markets outside of the U.S. and in other trims.
Tesla announced on Monday night that it has officially launched the Model Y Premium in a seven-seat configuration, which also comes standard with a 16″ touchscreen and black headliner, both of which are featured in the Model Y Performance trim.
The seven-seat configuration is highly requested by consumers and helps fill out the more spacious SUV offering that the lineup has missed outside of the Model X, which prices out many consumers. This new upgrade only costs $2,500 extra for all three features, bringing the cash price to $48,990.
This also comes with the larger 16” touchscreen! pic.twitter.com/aiAxWUTKZa
— TESLARATI (@Teslarati) January 13, 2026
The move to add the seven-seat configuration with the black headliner and additional screen size is a welcome addition, as many Tesla fans have asked the company to come out with an SUV with more seating capacity. Although it is not a full-size SUV, the additional seating will certainly attract some buyers with bigger families.
It appears the third row is slightly more spacious than the past iteration of the seven-seat Model Y, which was available in the previous design pre-Juniper:
Credit: Tesla
However, it definitely still appears to be pretty cramped in terms of legroom. It will definitely be a seating arrangement for smaller passengers, mostly reserved for children.
The other two upgrades are the black headliner, which was launched in other markets and in the Model Y Performance. Many owners have wanted this change, and Tesla listened, but is only offering it with the seven-seat configuration. It also has a larger 16″ touchscreen, also present in the Model Y Performance exclusively:
Credit: Tesla
It is a nice touch to add these highly requested features to the all-electric crossover, which was the best-selling vehicle in the world for the third consecutive year.
Tesla counters Norway’s VAT hike with dedicated consumer bonus
SpaceX gains favor as Pentagon embraces Musk-style defense reform
