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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.
Elon Musk
Ford CEO Farley says Tesla is not who to look at for EV expertise
Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.
Ford CEO Jim Farley said in a recent podcast interview that Tesla is not who Americans should look at to beat Chinese carmakers.
The comments have sparked quite a bit of outrage from Tesla fans on X, the social media platform owned by Elon Musk.
Farley said that Chinese automakers are better examples of how to beat competitors. He said (via the Rapid Response Podcast):
“If you’re an American and you want us to beat the Chinese in the car business, you’re all going to want to pay attention, not necessarily to Tesla. Nothing against Tesla—they’ve been doing great—but they really don’t have an updated vehicle. The best in the business for us, cost-wise and competition-wise, supply chain, manufacturing expertise, and the I.P. in the vehicle, was really BYD. In this next cycle of EV customers in the U.S., they want pickups and utilities and all these different body styles. But they want them at $30,000, not $50,000. Like the first inning, they want them affordably.”
Despite Farley’s synopsis, it is worth mentioning that Tesla had the best-selling passenger vehicle in the world last year, and in China in March, as the Model Y continued its global dominance over other vehicles.
Musk responded to Farley’s comments by stating:
“This is before Supervised FSD is approved in China. Limiting factor is production output in Shanghai.”
This is before supervised FSD is approved in China. Limiting factor is production output in Shanghai.
— Elon Musk (@elonmusk) April 19, 2026
Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.
Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges
Instead, Ford is “doubling down on its affordable” EVs and said it would pivot from its previous plans.
Reaction from Tesla fans was pretty much how you would expect. Many said they have lost a lot of respect for Farley after his comments; others believe he is the last CEO anyone should be taking advice on EVs from.
Nevertheless, Farley’s plans are bold and brash; many consider Tesla the most ideal company to replicate EV efforts from. It will be interesting to see if Ford can rebound from this big adjustment, and hopefully, Farley’s plans to replicate efforts from BYD work out the way he hopes.
Elon Musk
SpaceX wins its first MARS contract but it comes with a catch
NASA awarded SpaceX a $175 million Mars rover contract while the White House proposes cutting the mission.
NASA just signed a $175.7 million contract with SpaceX to launch a Mars rover that the White House is simultaneously trying to defund. The contract, awarded on April 16, 2026, tasks SpaceX’s Falcon Heavy with launching the European Space Agency’s (ESA) Rosalind Franklin rover from Kennedy Space Center in Florida, no earlier than late 2028. It would mark the first time SpaceX has ever sent a payload to Mars.
Under NASA’s Rosalind Franklin Support and Augmentation project, known as ROSA, the agency is providing braking engines for the rover’s descent stage, radioisotope heater units that use decaying plutonium to keep the rover warm on the Martian surface, additional electronics, and a mass spectrometer instrument, as noted by SpaceNews.
Those nuclear heating units are the reason an American rocket was required at all. U.S. export controls on radioisotope technology mean any payload carrying them must launch on a domestic vehicle, which narrowed the field to SpaceX and United Launch Alliance. Falcon Heavy’s pricing made it the practical choice.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
Falcon Heavy debuted in February 2018 and has 11 launches to its record. The rocket has not flown since October 2024, when it sent NASA’s Europa Clipper toward Jupiter. The three-core design, built from modified Falcon 9 first stages, gives it the lift capacity needed for deep space planetary missions that a single Falcon 9 cannot reach.
The Rosalind Franklin rover has been sitting in storage in Europe for years. It was originally due to launch in 2022 as a joint mission with Russia, but Russia’s invasion of Ukraine ended that partnership, leaving the rover built but stranded without a launch vehicle or landing hardware. NASA stepped back in through a 2024 agreement with ESA to rescue the mission. The rover is designed to drill up to two meters below the Martian surface in search of evidence of past life, a science objective no previous mission has attempted at that depth.
The contradiction at the center of this story is hard to ignore. The White House’s fiscal year 2027 budget proposal included no funding for ROSA and did not mention the mission at all in the detailed congressional justification document released April 3.
Musk has long argued that reaching Mars is not optional. “We don’t want to be one of those single planet species, we want to be a multi-planet species.” Whether this particular mission survives Washington’s budget fight, the Falcon Heavy contract means SpaceX is now formally on record as the rocket that could get humanity’s next Mars science mission off the ground.
The timing of this contract carries extra weight given that SpaceX filed confidentially with the SEC in early April and is targeting an IPO roadshow in the week of June 8. It would be the largest public offering in history.
Tesla (NASDAQ: TSLA) is set to hold its Earnings Call for the first quarter of 2026 on Wednesday, and there are a lot of interesting things that are swirling around in terms of speculation from investors.
With the company’s executives, including CEO Elon Musk, answering a handful of questions that investors submit through the Say platform, fans want to know a lot of things about a lot of things.
These five questions come from Retail Investors, who are normal, everyday shareholders:
- When will we have the Optimus v3 reveal? When will Optimus production start, since we ended the Model S and Model X production earlier than mid-year? What’s the expected Optimus production rate exiting this year? What are the initial targeted skills?
- What milestones are you targeting for unsupervised FSD and Robotaxi expansion beyond Austin this year, and how will that drive recurring revenue?
- How will Hardware 3 cars reach Unsupervised Full Self-Driving?
- When do you expect Unsupervised Full Self-Driving to reach customer cars?
- When will Robotaxi expand past its current limited rollout?
Additionally, these are currently the three questions that are slated to be answered by Institutional Firms, which also answer a handful of questions during the call:
- Now that FSD has been approved in the Netherlands and is expected to launch across Europe this summer, can you discuss your Robotaxi strategy for the region?
- What enabled you to finish the AI5 tapeout early and were there any changes to the original vision? Last week, Elon said AI5 will go into Optimus and the Supercomputer, but one month ago said it would go into the Robotaxi. Has AI5 been dropped from the vehicle roadmap?
- Given the recent NHTSA incident filings, can you update us on the Robotaxi safety data? If safety validation remains the primary bottleneck, why not deploy thousands of vehicles to accelerate the removal of the safety driver?
The questions range through every current Tesla project, including FSD expansion and Optimus. However, many of the answers we will get will likely be repetitive answers we’ve heard in the past.
This is especially pertinent when the questions about when Unsupervised FSD will reach customer cars: we know Musk will say that it will happen this year. Is Tesla capable of that? Maybe. But a more transparent answer that is more revealing of a true timeline would be appreciated.
Hardware 3 owners are anxiously awaiting the arrival of FSD v14 Lite, which was promised to them last year for a release sometime this year.
The Earnings Call is set to take place on Wednesday at market close.
Ford CEO Farley says Tesla is not who to look at for EV expertise
SpaceX wins its first MARS contract but it comes with a catch
