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Porsche admits EV investment to take on Tesla is an “enormous burden”
It’s no secret that Porsche is looking to soak up market share away from Tesla when the automaker releases its long range, all-electric Mission E in 2019. Arguably one of Tesla’s strongest potential competitors, with decades of manufacturing expertise and support from parent company Volkswagen AG, the German automaker specializing in high performance vehicles is preparing to face financial headwinds as it aims to electrify its fleet.
Porsche’s CFO, Lutz Meschke, recently spoke with Automotive News Europe about the company’s plan to stay profitable as it invests billions into its electric vehicle program.
“Today Porsche packs 8,000 to 10,000 euros in added content into an electrified vehicle, but those costs cannot be passed on via the price. The customer won’t accept it, just the opposite, in some parts of the world there’s a certain hesitation,” said Meschke in his interview with Automotive News Europe.
As Porsche looks to invest more than 3 billion euros ($3.5 billion USD) into the development of EVs and plug-ins, the automaker will continue to build internal combustion engine vehicles in parallel and implement company-wide cost-cutting measures to retain its profit margin. “That’s an enormous burden for a company of our size.” says Meschke.
“To protect your margin, you have to look at substantial fixed cost cuts, but there’s only so much potential since the biggest chunks are personnel and development. As sales shift toward EVs, a temporary drop in profitability in the midterm may be expected.”
For context, Porsche’s investment into its EV program amounts to roughly 70% of what Tesla’s Gigafactory will cost when complete. It’s a massive undertaking that Porsche admits will require company restructuring along with financial incentives to its workforce. “We need to structure the company so that it is in position to sustainably achieve that. There can always be years when it might drop to below 15 percent due to exchange rates or an economic crisis, but every worker has to know we are not letting up.” says Porsche’s CFO. “There’s even a pension component.”
By setting a fixed margin target of 15% on a company-wide basis, Porsche’s entire workforce is able to work towards a single goal as looks to maintain a steady CapEx and R&D ratio. “It’s better for Porsche to work with a fixed margin target. It’s really an internal steering instrument. That’s why everyone in the company from the manager to the assembly line worker knows the goal is 15 percent. If we work with a range, that effect is diluted.”
Porsche Mission E concept rendering
When asked by Automotive News Europe on whether Porsche will need to implement a deep cost-cutting program to maintain the company’s high margins, Meschke responded “Under our Porsche Improvement Process, we aim for annual savings of at least 3 percent in indirect areas and 6 percent in direct ones.” Moreover, Porsche’s exec notes that the company performs a cross-department review each year to see if they were able to maintain a 10% savings. “There can always be a time when we need to pull on all levers, but identifying and extracting efficiencies is our everyday business. That way we don’t have to resort to major savings programs at the slightest headwind.”
Maximizing efficiencies across the organization is something Tesla CEO Elon Musk has long talked about. By “building the machine that builds the machine“, Tesla looks to utilize an army of manufacturing robots to achieve mass volume production of its product line that consists of vehicles, solar products and battery storage solutions. It’s the company’s key differentiator over other manufacturers that largely have robots augmenting human personnel as opposed to replacing them.
The goal to achieve full automation is Tesla’s biggest strength, yet also the company’s weakest link, as made evident when Musk announced that production of its mass market-intent Model 3 vehicle was facing issues. The downside to implementing a highly automated production line is the need to have robots that work in perfect harmony with one another. Any misconfiguration or general issue around a specific machine in the process becomes amplified across all other machines that rely on it. There’s less tolerance for errors in an automated process, explained Musk during the company’s third-quarter earnings call.
Porsche’s strategic entry into a market that’s been largely dominated by Tesla is an interesting match up that pits David versus Goliath. With two very different approaches to reaching mass volume production from two very distinct companies, it’s anyone’s guess who’ll come out ahead in the race to electric mobility. Regardless, competition helps stimulate innovation, productivity and growth prospects in the electric car sector, and that can only be a good thing.
Elon Musk
Elon Musk has generous TSA offer denied by the White House: here’s why
Musk stepped in on March 21 via a post on X, writing: “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country.”
Tesla and SpaceX CEO Elon Musk made a generous offer to pay the salaries of Transportation Security Administration (TSA) employees last week, but the offer was denied by the White House.
In a striking display of private-sector initiative clashing with federal bureaucracy, the White House has turned down an offer from Elon Musk to personally cover the salaries of TSA officers amid an ongoing partial government shutdown. The rejection, reported last Wednesday by multiple outlets, highlights the legal and political hurdles facing unconventional solutions to Washington’s funding gridlock.
The impasse began weeks ago when Congress failed to pass funding for the Department of Homeland Security (DHS), leaving TSA employees, essential workers who screen millions of travelers daily, without paychecks while still required to report for duty.
Frustrated travelers have endured record-long security lines at major airports, with reports of chaos and delays rippling across the country.
Musk stepped in on March 21 via a post on X, writing: “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country.”
I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country
— Elon Musk (@elonmusk) March 21, 2026
But it was not for no reason.
White House spokesperson Abigail Jackson responded on behalf of the Trump administration, expressing appreciation for Musk’s gesture.
However, the legal obstacles, which would be insurmountable, would inhibit Musk from doing so. Jackson said:
“We greatly appreciate Elon’s generous offer. This would pose great legal challenges due to his involvement with federal government contracts.”
Musk’s companies hold significant federal contracts, including NASA launches through SpaceX and potential Defense Department work, raising concerns about conflicts of interest, ethics rules, and anti-bribery statutes that prohibit private payments to government employees. Administration officials also indicated they expect the shutdown to end soon, making external funding unnecessary.
The episode underscores deeper tensions in Washington. Musk, who has advised on government efficiency efforts and maintains a close relationship with President Trump, has frequently criticized wasteful spending and bureaucratic delays.
His offer came as airport security lines ballooned, drawing public frustration toward both parties. TSA officers, many of whom rely on paychecks to cover mortgages and family expenses, have continued working without compensation, a situation that has drawn bipartisan concern but little immediate resolution.
Critics of the rejection argue it prioritizes red tape over practical relief for frontline workers and travelers. Supporters of the White House position counter that allowing private funding sets a dangerous precedent and could undermine congressional authority over the budget.
The White House eventually came to terms with the TSA on Friday and started paying them once again, and lines at airports instantly shrank. The Department of Homeland Security (DHS) said that TSA staf would begin receiving paychecks “as early as” today.
Elon Musk
Tesla FSD mocks BMW human driver: Saves pedestrian from near miss
Tesla FSD anticipated a BMW driver’s lane drift before the human behind the wheel could react.
A video posted to r/TeslaFSD this week put a sharp spotlight on Tesla’s Full Self-Driving (FSD) software being able to react to pedestrian intent than an actual human driver behind the wheel. In the Reddit clip, a BMW driver can be seen rolling through a neighborhood street completely unaware of a pedestrian stepping in to cross. At the same time, a Tesla driving on FSD had already begun slowing down before the pedestrian even began their attempt to cross the street The BMW kept moving, prompting the pedestrian to hop back, while the Tesla came to a stop and provide right-of-way for the human to safely cross.
That gap between what the BMW driver saw and what FSD had already processed is the story. Tesla FSD wasn’t reacting to a person in the street, rather it was reading the signals that a person was about to enter it based on the pedestrian’s movement, trajectory, and their trajectory to telegraph intent.
Tesla’s FSD is now built on an end-to-end neural network trained on billions of real-world miles, learning to interpret subtle human behavioral cues the same way an experienced human driver does instinctively. The difference is consistency. A human driver distracted for two seconds misses what FSD does not.
Tesla sues California DMV over Autopilot and FSD advertising ruling
Reddit commenters in the thread were blunt about the BMW driver’s failure, with several pointing out that the pedestrian was visible well before the crossing. One response put it plainly that the car on FSD saw the situation developing before the human in the other car had registered there was a situation at all.
Tesla has published data showing FSD (Supervised) is 54% safer than a human driver, accumulated across billions of miles driven on the system. Elon Musk has said FSD v14 will outperform human drivers by a factor of two to three, and that v15 has “a shot” at a 10x improvement. Pedestrian safety is where the stakes are highest, and where intent prediction closes the gap fastest. At 30 mph, a car covers roughly 44 feet per second. An extra second of awareness from reading a person’s body language rather than waiting for them to step out is often the difference between a near miss and a fatality.
Video and community discussion: r/TeslaFSD on Reddit
FSD saves man from becoming a pancake. BMW driver nearly flattens him.
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u/Qwertygolol in
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Tesla Robotaxi gets a small but significant change
In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.
In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.
Last week in downtown Austin, sharp-eyed observers spotted a subtle but telling evolution on the Cybercab: a new “ROBOTAXI” logo graphic now graces the vehicle’s doors at Tesla’s Autonomy Popup.
What looks at first glance like a minor stylistic choice is, in fact, a deliberate rebranding move that hints at how the company envisions its robotaxi fleet fitting into everyday life.
The updated lettering is bold, graffiti-inspired, and unapologetically street-smart. Rendered in black with dripping white accents and a glowing yellow outline, the font evokes urban energy and playful irreverence.
Live From Downtown Austin:
Tesla Cybercab with new logo Graphic at their Autonomy Popup pic.twitter.com/MTTb9KDr3b
— David Moss (@DavidMoss) March 13, 2026
Gone is the sleek, minimalist typography that defined earlier Cybercab prototypes. In its place is something more human, almost rebellious.
The new logo pops against the Cybercab’s smooth, metallic body, turning the autonomous pod into a rolling piece of public art rather than just another futuristic taxi.
Designers know that fonts are silent brand ambassadors. They shape perception before a single ride is taken. Tesla’s classic sans-serif aesthetic screams precision engineering and Silicon Valley cool.
The new Robotaxi script leans into accessibility and fun, suggesting the vehicle is approachable, not intimidating. For a product meant to ferry strangers through city streets 24/7, that matters. It signals that the robotaxi isn’t reserved for tech elites; it’s for everyone.
Tesla Cybercab spotted next to Model Y shows size comparison
The timing is no accident. With regulatory approvals for unsupervised autonomy advancing and Tesla preparing to scale Cybercab production, the company is shifting from prototype showcase to fleet deployment.
A fresh logo helps differentiate the vehicles visually in dense urban environments—crucial for rider recognition and brand recall. It also aligns with Elon Musk’s long-standing ethos: make the future feel exciting, not sterile.
Small changes like this often foreshadow a larger strategy. Tesla has always obsessed over details—door handles, screen interfaces, even the curvature of a steering wheel.
Updating the Robotaxi font reflects the same meticulous care now applied to consumer-facing autonomy. It’s not just paint on metal; it’s a statement that the ride of the future should feel personal, memorable, and undeniably cool.
In an industry racing toward self-driving fleets, Tesla’s willingness to evolve even the smallest visual cues shows confidence. A font won’t launch the robotaxi network, but it might just help millions climb aboard with a smile.
Elon Musk has generous TSA offer denied by the White House: here’s why
Tesla FSD mocks BMW human driver: Saves pedestrian from near miss
Tesla Robotaxi gets a small but significant change
Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
