News
Opinion: Where would Herbert Diess fit best (hypothetically)?
Herbert Diess is officially no longer a Volkswagen employee, effective Wednesday. The seven-year reign as CEO and Chairman of the Board of Management came to somewhat of an abrupt end after Diess and VW decided to part ways at the end of August.
“These were the most rewarding seven years of my career. The future of our industry can be brilliant, but we have to change fast. Volkswagen has already changed tremendously and is well underway,” Diess said. “We have transformed the company that was seen as an autocratic cheat into a global thought leader in clean mobility.”
Herbert Diess bids farewell to Volkswagen on his final day as CEO
Diess’s future remains in question, and while retirement is the likely option, there are several routes that he could potentially go, barring any stipulation in his contract that would eliminate the possibility of working for a competitor. While it is a long shot, Diess has three main automakers he would likely benefit from almost immediately, making an impact on several companies as his proven track record speaks for itself.
Tesla
(Credit: Herbert Diess/LinkedIn)
While I have already been in numerous discussions with various people about this possibility, and even though it seems unlikely, the first company that Diess would benefit is Tesla. Not only does Diess share a friendship with Elon Musk, but he could also benefit Tesla’s European business with additional expertise on the market. VW has performed very well in Europe in terms of EVs, and helping Tesla expand its operations throughout the continent would likely be a huge advantage for the company.
Tesla undoubtedly has a bright future in Europe, but Volkswagen currently holds the EV title there. The AG owned 1/4 of the European plug-in market in 2021, according to CleanTechnica data.
Toyota
I believe Diess has the track record to be a considerable ally to Toyota. Why? Toyota and VW have a lot of parallels, and Diess would likely navigate through them with considerable success.
Toyota is the world’s largest automotive manufacturer by volume, and it has been for some time. The last time a major automotive manufacturer outproduced Toyota was when GM built nearly 1M cars more than the Japanese company in 2011. Even VW finished ahead of Toyota in terms of production that year, but it has been a masterclass in production ever since.
Credit: Toyota
Volume is not the only way the two companies are somewhat similar. EV development is also somewhat of a parallel. VW has coming out of the Dieselgate crisis and had to make major waves to regain consumer trust. Diess knew this, and pushed incredibly hard for several years to help VW reinvent its reputation as a sustainable company. Toyota really needs the same thing.
Although it isn’t going thru an emissions scandal, Toyota has basically half-committed to EVs, aiming to go toward hydrogen and hybrid vehicles instead. It is not to say that the company hasn’t contributed to sustainability in other ways: the Toyota Prius was a huge step forward in sustainable transport. Evolution needs to continue, however, and it is time for Toyota to really begin developing some high-tech EVs. They’re falling behind, and Diess, with his experience in high-volume companies and sluggish EV plans, is a good fit.
General Motors
GM would also be a good fit for Diess simply because of his push and determination to transition a company quickly. GM is honestly a company that has so much potential, but it feels like they’re falling just short of the mark in so many areas. The Bolt has plagued GM with bad advertising for several years, the HUMMER EV is having more issues than what were anticipated, and the company’s plans for electrification seem to be one drastic announcement followed by silence and promises that they’ll one day overtake Tesla.
While Tesla dominates the industry now, it will eventually take a few decades for others to catch up, and they likely will. However, Tesla is establishing itself as the leader and it is no secret. It is going to take a long time to figure out the tech and the manufacturing and the supply chain.
The first 2022 GMC HUMMER EV Pickup Edition 1 exits Factory ZERO in Detroit and Hamtramck, Michigan. VIN 001 was auctioned in March 2021 at the Barrett-Jackson Scottsdale auction for $2.5 million to benefit the Tunnel to Towers Foundation. (Photo by Jeffrey Sauger for General Motors)
GM will likely catch up to Tesla, but it won’t be in the 2020s or 2030s. They’ll all even out, just as the market is now. A lot of car companies do a lot of business, and it’s only a matter of time before other companies begin to figure things out.
GM will absolutely be a true player in the EV industry, and it’s just going to take some time. This is where I feel Diess would be a considerable asset to GM, simply because he emphasized on accelerating VW’s transition to sustainable energy. The goals of 2035 or more were simply not going to work. Things needed to be figured out now, and the goal is to establish yourself as an early player in the disruption of a sector. VW has done that thanks to Diess, GM has announced more (at least to me) but accomplished considerably less.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
News
Rivian unveils self-driving chip and autonomy plans to compete with Tesla
Rivian, a mainstay in the world of electric vehicle startups, said it plans to roll out an Autonomy+ subscription and one-time purchase program, priced at $49.99 per month and $2,500 up front, respectively, for access to its self-driving suite.
Rivian unveiled its self-driving chip and autonomy plans to compete with Tesla and others at its AI and Autonomy Day on Thursday in Palo Alto, California.
Rivian, a mainstay in the world of electric vehicle startups, said it plans to roll out an Autonomy+ subscription and one-time purchase program, priced at $49.99 per month and $2,500 up front, respectively, for access to its self-driving suite.
CEO RJ Scaringe said it will learn and become more confident and robust as more miles are driven and it gathers more data. This is what Tesla uses through a neural network, as it uses deep learning to improve with every mile traveled.
He said:
“I couldn’t be more excited for the work our teams are driving in autonomy and AI. Our updated hardware platform, which includes our in-house 1600 sparse TOPS inference chip, will enable us to achieve dramatic progress in self-driving to ultimately deliver on our goal of delivering L4. This represents an inflection point for the ownership experience – ultimately being able to give customers their time back when in the car.”
At first, Rivian plans to offer the service to personally-owned vehicles, and not operate as a ride-hailing service. However, ride-sharing is in the plans for the future, he said:
“While our initial focus will be on personally owned vehicles, which today represent a vast majority of the miles to the United States, this also enables us to pursue opportunities in the rideshare space.”
The Hardware
Rivian is not using a vision-only approach as Tesla does, and instead will rely on 11 cameras, five radar sensors, and a single LiDAR that will face forward.
It is also developing a chip in-house, which will be manufactured by TSMC, a supplier of Tesla’s as well. The chip will be known as RAP1 and will be about 50 times as powerful as the chip that is currently in Rivian vehicles. It will also do more than 800 trillion calculations every second.
Meet the Rivian Autonomy Processor.
Fast, smart, scalable and purpose-built for autonomous driving and the world of physical AI. Hitting the open road in 2026. pic.twitter.com/0wYXi5WKy7
— Rivian (@Rivian) December 11, 2025
RAP1 powers the Autonomy Compute Module 3, known as ACM3, which is Rivian’s third-generation autonomy computer.
ACM3 specs include:
- 1600 sparse INT8 TOPS (Trillion Operations Per Second).
- The processing power of 5 billion pixels per second.
- RAP1 features RivLink, a low-latency interconnect technology allowing chips to be connected to multiply processing power, making it inherently extensible.
- RAP1 is enabled by an in-house developed AI compiler and platform software
As far as LiDAR, Rivian plans to use it in forthcoming R2 cars to enable SAE Level 4 automated driving, which would allow people to sit in the back and, according to the agency’s ratings, “will not require you to take over driving.”
More Details
Rivian said it will also roll out advancements to the second-generation R1 vehicles in the near term with the addition of UHF, or Universal Hands-Free, which will be available on over 3.5 million miles of roadway in the U.S. and Canada.
More than any other feature, our owners have asked for more hands-free miles.
With Universal Hands-Free, you can now enjoy hands-free assisted driving on any road with clearly defined lanes. That’s roughly 3.5 million miles in the U.S. and Canada.
Look for it in our next… pic.twitter.com/ZFhwVzvt6b
— Rivian (@Rivian) December 11, 2025
Rivian will now join the competitive ranks with Tesla, Waymo, Zoox, and others, who are all in the race for autonomy.
News
Tesla partners with Lemonade for new insurance program
Tesla recently was offered “almost free” coverage for Full Self-Driving by Lemonade’s Shai Wininger, President and Co-founder, who said it would be “happy to explore insuring Tesla FSD miles for (almost) free.”
Tesla owners in California, Oregon, and Arizona can now use Lemonade Insurance, the firm that recently said it could cover Full Self-Driving miles for “almost free.”
Lemonade, which offered the new service through its app, has three distinct advantages, it says:
- Direct Connection for no telematics device needed
- Better customer service
- Smarter pricing
The company is known for offering unique, fee-based insurance rates through AI, and instead of keeping unclaimed premiums, it offers coverage through a flat free upfront. The leftover funds are donated to charities by its policyholders.
On Thursday, it announced that cars in three states would be able to be connected directly to the car through its smartphone app, enabling easier access to insurance factors through telematics:
Lemonade customers who own @Tesla vehicles in California, Oregon, and Arizona can now connect their cars directly to the Lemonade app! ⚡🚘
Direct connection = no telematics device needed 📵
Better customer experience 💃
Smarter pricing with Lemonade 🧠This is a game-changer… pic.twitter.com/jbabxZWT4t
— Lemonade (@Lemonade_Inc) December 11, 2025
Tesla recently was offered “almost free” coverage for Full Self-Driving by Lemonade’s Shai Wininger, President and Co-founder, who said it would be “happy to explore insuring Tesla FSD miles for (almost) free.”
The strategy would be one of the most unique, as it would provide Tesla drivers with stable, accurate, and consistent insurance rates, while also incentivizing owners to utilize Full Self-Driving for their travel miles.
Tesla Full Self-Driving gets an offer to be insured for ‘almost free’
This would make FSD more cost-effective for owners and contribute to the company’s data collection efforts.
Data also backs Tesla Full Self-Driving’s advantages as a safety net for drivers. Recent figures indicate it was nine times less likely to be in an accident compared to the national average, registering an accident every 6.36 million miles. The NHTSA says a crash occurs approximately every 702,000 miles.
Tesla also offers its own in-house insurance program, which is currently offered in twelve states so far. The company is attempting to enter more areas of the U.S., with recent filings indicating the company wants to enter Florida and offer insurance to drivers in that state.
Tesla Model Y configurations are getting hefty discounts and more benefits as the company is in the phase of its final sales push for the year.
Tesla is offering up to $1,500 off new Model Y Standard trims that are available in inventory in the United States. Additionally, Tesla is giving up to $2,000 off the Premium trims of the Model Y. There is also one free upgrade included, such as a paint color or interior color, at no additional charge.
NEWS: Tesla is now offering discounts of up to $1,500 off new Model Y Standard vehicles in U.S. inventory. Discounts of up to $2,000 are also being offered on Model Y Premiums.
These discounts are in addition to the one free upgrade you get (such as Diamond Black paint) on… pic.twitter.com/L0RMtjmtK0
— Sawyer Merritt (@SawyerMerritt) December 10, 2025
Tesla is hoping to bolster a relatively strong performance through the first three quarters of the year, with over 1.2 million cars delivered through the first three quarters.
This is about four percent under what the company reported through the same time period last year, as it was about 75,000 vehicles ahead in 2024.
However, Q3 was the company’s best quarterly performance of all time, and it surged because of the loss of the $7,500 EV tax credit, which was eliminated in September. The imminent removal of the credit led to many buyers flocking to Tesla showrooms to take advantage of the discount, which led to a strong quarter for the company.
2024 was the first year in the 2020s when Tesla did not experience a year-over-year delivery growth, as it saw a 1 percent slide from 2023. The previous years saw huge growth, with the biggest coming from 2020 to 2021, when Tesla had an 87 percent delivery growth.
This year, it is expected to be a second consecutive slide, with a drop of potentially 8 percent, if it manages to deliver 1.65 million cars, which is where Grok projects the automaker to end up.
Tesla will likely return to its annual growth rate in the coming years, but the focus is becoming less about delivery figures and more about autonomy, a major contributor to the company’s valuation. As AI continues to become more refined, Tesla will apply these principles to its Full Self-Driving efforts, as well as the Optimus humanoid robot project.
Will Tesla thrive without the EV tax credit? Five reasons why they might
These discounts should help incentivize some buyers to pull the trigger on a vehicle before the year ends. It will also be interesting to see if the adjusted EV tax credit rules, which allowed deliveries to occur after the September 30 cutoff date, along with these discounts, will have a positive impact.
Rivian unveils self-driving chip and autonomy plans to compete with Tesla
Tesla partners with Lemonade for new insurance program
