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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.
Tesla is continuing to refine and improve its Robotaxi program from A to Z, and it is now going to make some sweeping changes to the smartphone app portion of the suite.
The company is aiming to make some sweeping changes with the release of Robotaxi app version 26.4.5, which was recently decompiled by Tesla App Updates on X. The update reveals significant new code, focused on remote operations, safety protocols, and seamless autonomous ride-hailing.
These improvements evidently signal Tesla’s preparations for scaling unsupervised Cybercab deployments, particularly the steering wheel-less variants spotted in production. The enhancements emphasize providing a reliable experience that gives passengers support when needed, along with operational efficiency.
Version 26.4.5 of the Robotaxi app has been de-compiled and we’ve got some interesting things added this update (https://t.co/jInbED7fOv):
– Remote Operator Voice Calls 📞
– Proactive Remote Assistance 🤖
– Manual Override + Remote Start for wheel-less Cybercabs 🎮
-…
— Tesla App Updates (iOS) (@Tesla_App_iOS) May 16, 2026
Remote Operator Voice Calls
One standout addition is support for remote operator voice calls. The app now includes a dedicated native voice-communication system linking passengers directly to Tesla teleoperators via the vehicle’s cabin microphone and speakers.
This feature allows real-time assistance during rides, addressing issues like navigation questions or comfort adjustments without disrupting the autonomous journey. It builds on existing support protocols, making human intervention more accessible and intuitive.
Proactive Remote Assistance
The update introduces proactive remote assistance capabilities. Rather than waiting for passenger-initiated requests, the system can anticipate and offer help based on monitored conditions.
This might include something like suggesting route changes, climate adjustments, or addressing potential delays. By integrating AI-driven monitoring with human oversight, Tesla aims to deliver a smoother, more attentive experience that exceeds traditional ride-sharing services.
Manual Override and Remote Start for Steering Wheel-less Cybercabs
A key highlight for the wheel-less Cybercab fleet is manual override plus remote start functionality. Fleet operators and technicians can now temporarily take control or remotely start vehicles lacking steering wheels. This is crucial for lower-speed maneuvers, such as getting vehicles from tight parking situations or even performing maintenance.
Controls are strictly limited for safety–typically to speeds under 2 MPH–ensuring these interventions remain emergency measures only.
Tesla is adding a secure “Enable Manual Drive” mode that will allow those fleet operators or others to take control temporarily.
Additionally, a Remote Start feature, which authorizes an empty vehicle to begin a driverless ride alone.
Ride-Hailing and Dispatch Features
Ride dispatch has been enhanced with soft-matching and multi-stop support. The app can intelligently pair riders with available Cybercabs while accommodating multiple destinations in a single trip.
This optimizes fleet utilization, reduces wait times, and improves efficiency for shared rides. Soft-matching likely considers factors like proximity, rider preferences, and vehicle availability for better user satisfaction.
Rider-Cabin Sync, Real-Time Routing
New synchronization tools allow the rider’s app to mirror and control cabin settings like seating, climate, and entertainment directly from their phone. Real-time routing updates adapt dynamically to traffic or road conditions, while dynamic safety monitoring continuously assesses the environment.
The app can now push updates directly to the main screen, enabling Center Display Control. Additionally, there is a dedicated navigation protocol sharing the exact coordinates of road closures and construction, which could prevent the car from getting stuck and needing manual override.
These features create a cohesive, responsive experience where the vehicle and app work in harmony.
Kill Switch
A high-security command lets Tesla completely freeze a vehicle’s ability to drive. This would take the vehicle out of the Robotaxi fleet for any reason Tesla sees fit, and would not allow it to be put into gear even with the correct equipment, like valid keys.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
Tesla just raised Model Y prices for the first time in two years, with the largest increase being $1,000.
The move signals shifting dynamics in the competitive electric vehicle market as the company continues to work on balancing demand, profitability, and accessibility.
The new pricing affects premium trims while leaving entry-level options unchanged. The Model Y Premium Rear-Wheel Drive (RWD) now starts at $45,990, a $1,000 increase.
The Model Y Premium All-Wheel Drive (AWD)—previously referred to in the post as simply “Model Y AWD”—rises to $49,990, also up $1,000. The top-tier Model Y Performance sees a more modest $500 bump, bringing its starting price to $57,990.
Tesla Model Y prices just went up:
New prices:
🚗 Model Y Premium RWD: $45,990 – up $1,000
🚗 Model Y AWD: $49,990 – up $1,000
🚗 Model Y Performance: $57,990 – up $500 https://t.co/e4GhQ0tj4H pic.twitter.com/TCWqr3oqiV— TESLARATI (@Teslarati) May 16, 2026
Base models remain untouched to preserve affordability. The entry-level Model Y RWD holds steady at $39,990, and the base Model Y AWD stays at $41,990. This selective approach keeps the crossover accessible for budget-conscious buyers while extracting more revenue from higher-margin configurations.
After years of aggressive price cuts to stimulate volume amid slowing EV adoption and rising competition from rivals like BYD, Ford, and GM, Tesla appears confident in underlying demand. Recent lineup refreshes for the 2026 Model Y, including refreshed styling and efficiency gains, have helped maintain its status as America’s best-selling EV.
By protecting base prices, Tesla avoids alienating price-sensitive customers while improving margins on the more popular variants.
Tesla Model Y ownership review after six months: What I love and what I don’t
For consumers, the changes are relatively modest—under 3% on affected trims—and still position the Model Y competitively against gas-powered SUVs in the same class. Federal tax credits and potential state incentives may further offset costs for eligible buyers.
This marks a subtle but notable shift from the deep discounting era that defined much of 2024 and 2025. As the EV market matures into 2026, Tesla’s pricing strategy will be closely watched for clues about production ramps, new variants like the rumored longer-wheelbase Model Y, and broader profitability goals.
In short, today’s adjustment reflects a company that remains dominant yet pragmatic—willing to test higher pricing where demand supports it. It is unlikely to deter consumers from choosing other options.
Tesla is making sweeping improvements to Robotaxi
Starship V3 is here putting SpaceX closer to Mars than it has ever been
