Connect with us

News

Porsche Whistleblower: “60% of all delivered Taycan have battery issues that caused replacements, damages and fires”

Published

on

“Six out of ten Porsche Taycan” ever delivered have a problem with battery management that affects and damages battery cells, requires replacement of cells and batteries, and is causing vehicle fires, according to a source working at Porsche’s headquarters in Zuffenhausen, Germany. Porsche is reportedly hiding the problem from customers and authorities and quietly replacing damaged battery cell modules without informing customers to cover up the problem. Tesla offered to help Porsche with battery management through Audi contacts years ago, but Porsche management at the time rejected any external help, saying it could handle everything internally, the source noted.

“The problem affects six of ten delivered vehicles,” the source, who could be described as a whistleblower, said.

A Risky Business

The Porsche whistleblower explained that the Taycan’s 800V high-voltage onboard charger used today does not control the charging process well enough and can overcharge some battery cells, causing them to overheat. For safety reasons, overheated battery cells are disabled and isolated from the battery pack, reducing battery capacity and thus the vehicle’s range. The problem occurs when the batteries are charged at a low AC speed of up to 7.5 KW, a common use case for all charging, such as at home or on low-speed chargers, the source said. 

The 800V architecture of the Taycan, a vehicle the German automaker is proud of, has many advantages, but the strong current requires a very well-controlled charging process to avoid charging some cells faster than others. The battery cells in a BEV are always charged in parallel to shorten the charging time, but this carries the risk that some cells will be charged faster than others. If one of the many cells in a BEV is charged faster than the rest, overcharging and overheating can occur, which can lead to vehicle fires, if, for instance, an additional air leak happens. 

About 1% of the 60% of vehicles affected, or about 360 Taycans out of 36,000 vehicles delivered, had a preventable vehicle, cable, or smoldering fire attributable to the problem, the whistleblower said. These are figures from Porsche’s internal statistics, which the company updates on an ongoing basis to keep track of safety issues. The reason the whistleblower, who works for Porsche in Zuffenhausen, is talking about the problem at all, risking his job and more, is that the company has decided lately not to replace the Taycan’s onboard charger, but to continue shipping vehicles and all future new Taycan models with the problematic system, which may pose a notable safety risk.

Advertisement
The Porsche Taycan’s charging port. (Credit: Porsche Newsroom/Twitter)

Porsche uses an inexpensive onboard charger that does not control the process well, the whistleblower explained to me in detail. Fires have occurred in the Taycan battery, the source explained, due to the problem described. Porsche is reportedly aware of the problem and is working on it, but the automaker has not solved it or informed customers or authorities so far.

Instead, the company is reportedly hiding the problem for cost and reputational reasons, the source stated. This is because if acknowledged, all Taycans would require a recall and the replacement of their onboard charger, and all batteries would have to be inspected and tested and, if affected, replaced. The cost, the source said, would be in the hundreds of millions of euros and the damage to the company’s image could be even greater. 

A Remarkably Short Warranty

An apparent hint of Porsche’s challenges with the Taycan’s battery could be seen in the warranty for the all-electric sports car, which happens to be one of the lowest on the market with just 60,000 km or three years if following conditions (Porsche Warranty Requirements) are not met:

Vehicles standing longer than two weeks supposed to be connected to a charger

  • Customers must assure that the Taycan’s state of charge remains between 20% – 50%
  • Customers must make sure that their Taycan is not exposed to continuous sunlight

Vehicles standing longer than two weeks not connected to a charger

  • Customers must charge the Taycan’s battery before to 50%
  • Customers must check every three months and assure SoC remains at or above 20%
  • Customers must assure that their vehicle’s temperature is between 0C – 20C

While 160,000 km is an average battery warranty in the industry, Porsche confirmed to me the 100,000 km lower, 60,000 km warranty and its restrictions.

It is a well-known risk in the industry that when charging BEVs, an imbalance in the battery cells can lead to a sealed, encapsulated, and deactivated cell that can then overheat and cause battery damage and even fires if, for example, there is an additional leak in the battery box through which air can enter. Porsche’s 800V high-voltage architecture is more vulnerable in this regard than a low-voltage architecture such as Tesla’s 400V, or what other manufacturers use. Most of the BEV battery fire-related problems recorded in the past typically occurred in low-cost BEVs that lack sophisticated battery management systems or onboard chargers. Porsche has cut costs for its premium Taycan BEV, which poses a risk to customers, according to the whistleblower.

The Porsche Taycan’s battery pack. (Credit: @PorscheTime/Twitter)

Costs and Savings

The cell damage can be repaired at great expense, but in most cases, Porsche chooses not to, the whistleblower said. To compensate for the vehicle’s reduced range due to encapsulated and deactivated battery cells, Porsche in many cases reportedly unlocks unused, reserved battery capacity, effectively tricking customers into thinking everything has been fixed, even though the affected cells are no longer in use and remain a potential risk, the source said. Customers who don’t know that a cell in their battery has a problem may not even recognize the reduced range in their Taycans because Porsche releases unused battery capacity and therefore the problem is not detected at all from them. This could explain why the number of the reported battery problems on the Taycan shared by the media is much lower than 60%.

For all vehicles Porsche informs needing a repair, the customer is charged 600 euros/cells module, although the internal labor cost is just 26 euros, the whistleblower said. Porsche charges customers even though no repair has taken place at all but just a battery module cell exchange, the source added. A Taycan has 33 battery modules with 12 cells each adding it up to a total of 396 total cells. Issues that happen and should be covered by warranty are, with regards to labor cost, paid by the customer, creating high service and maintenance profits for Porsche.

Advertisement

Considering the battery degradation that all BEVs experience sooner or later, the 60% Taycan customers who have the battery problem described by the whistleblower will have a lower total battery capacity than paid for after the so-called “repair” and will experience an earlier reduction in range and thus a reduction in vehicle value. If the problem of overcharging the onboard charging cell occurs more frequently, the damage can accumulate to the point where a complete battery replacement is required, according to the whistleblower. If what the source reported is correct over time, all 40% Taycans not yet affected by the issue may one day experience the same problem, depending on the charging behavior of their owners.

To pretend to have done a repair that never happened and accept a lower battery capacity caused by a cheap Porsche onboard charger without informing the customer would be misleading, to say the least. Worse, the replaced battery cells and modules are susceptible to the same problem, and owners accustomed to charging at home with AC power up to 7.5 KW may soon be faced with the same problem again after their battery packs have been “repaired.” Disregarding the cost and depreciation is bad, but the safety issue is the most serious problem of all and should be, based on the information my source shared, investigated by authorities in all countries where the Taycan is shipped.

A Porsche Taycan RWD displayed in a showroom. (Credit: Ma. Claribelle Deveza)

An Invisible Fix

A different, more sophisticated charger for an extra 70 euros from the same supplier with a good reputation would solve the problem, but Porsche has so far decided against the hardware change, according to my sources. What sounds like a small additional cost is not small in the automotive industry, where target costs are a critical measure of team success and on which bonuses depend. The recent decision of Porsche not to use a better more sophisticated charger that would solve the problem for the foreseeable future made the source a whistleblower who rightly saw this as an unacceptable risk to customers.

The Taycan vehicles experiencing the charging problems are divided into three groups by Porsche and dealers, the whistleblower stated. Dealerships are under strict NDA and face losing their Porsche certification if they talk about the practice that the automaker is executing for years.

Affected Taycans are categorized as:

(a) Green – repair

Advertisement

b) Yellow – review with Porsche internal technical department

c) Red – replacement 

All vehicles that fall into the “Red” category receive a new battery module or entire battery with spare parts that are available within 24 hours. Not all customers with “Red” designations are informed that the cell module had been replaced on their Taycan, the whistleblower said. The newly installed battery is reportedly “read out” and the data is displayed to the customers who are informed, claiming that it is data from the old battery after the “repair.”  This, according to the source, effectively gives false proof that everything has been “fixed”. The new battery is then assigned to the old serial number, and this is how Porsche erases all traces that indicate fraud, the whistleblower said. That’s why it’s hard to prove that Porsche is cheating customers and misleading the public, the source explained to me. While vehicles designated as “Green” had been “fixed,” cars designated as “Yellow” are still undecided and need to be investigated.

If the authorities demand a Taycan recall and replacement of all onboard chargers and batteries, the associated costs will be in the hundreds of millions of euros the source stated. Provided that the whistleblower’s information is accurate, about 60,000 Taycans delivered so far would have to be recalled worldwide, with costly repairs, testing and hardware modifications. The reputational damage would be high and, like the VW Group cheating scandal, a major negative for the iconic automaker that claims safety comes first.

In the past, some Taycan battery fires, such as the one in a garage in the US state of Florida in early 2020 that occurred during nighttime charging, were never fully resolved after investigations began. My source said that Taycan fires were directly attributable to the problem with the charger and could have been prevented if Porsche had used a more expensive, higher-quality charger, as one would expect from a premium automaker. A small deviation during the charging process of only 0.1% can easily cause a vehicle fire when overcharged by 1%, my source said. The supplier has a reputable name, but a cheap charger was chosen to keep costs down.

Advertisement
Porsche’s Zuffenhausen site. (Credit: Teslarati)

Teslarati reached out to Porsche to comment on the whistleblower’s claims and received following feedback on November 23:

“I checked with our R+D department in Weissach and all of the issues addressed lack any basis. Based on this information we can´t confirm any of the issues,” a spokesperson from Porsche said.

The source was confronted with the feedback from Porsche and stated in another phone call that only a very small team is involved in the matter, and it is no surprise for him that many within the automaker do not know about the described issues. Many more details were revealed, but they are not included in this article to protect the source. The source explained that in previous cases, Porsche made sure that employees who leaked information never got a job in the industry again.

Other sources informed me years ago that during the development of the Taycan, meeting target costs was a large challenge and that this may have led to the unwise decision to choose a cheap charger. Currently, the VW Group’s BEVs are lower-margin compared to the company’s ICE models and not all are positive, creating strong pressure from management to reduce costs. Given the Taycan’s high price and good sales figures, it is reasonable to assume that it is profitable, but it may not generate as high margins as the company’s iconic ICE models.

The whistleblower also said that years ago, Tesla offered to help Porsche with its battery management system, but the German automaker declined the offer. Around three years ago, Porsche asked Tesla through Audi contacts if they could help then, but at the time, Tesla declined. My source said it was pure arrogance on Porsche’s part that led to today’s problems, as Tesla had been willing to help them. 

Previous problems with Taycan batteries led to a preliminary investigation by the US NHTSA in early 2021 into the sudden discharge of the 12V battery, which could result in the vehicle coming to a sudden stop. The NHTSA noted nine official complaints from Taycan owners, and Porsche recalled 43,000 Taycans to repair shops at that time. Taycan forum members report a variety of different battery problems as well as the media (e.g. a Taycan burned down in Florida), that may or may not be related to what my source reported. Overall, if we add all together, it appears that battery problems with the Taycan are not uncommon and with more age of batteries and vehicles, more issues may be reported. From what the whistleblower explained, the strategy from Porsche seems to be to solve or isolate technical issues without public notice.

Advertisement

The good news for the Audi e-tron GT that is produced on the same VW PPE BEV platform as the Taycan and shares many parts with it, is that Audi opted for a different and better onboard charger. The described problem is not existent with the e-tron GT, the source told me, but it’s unclear why Porsche isn’t learning from the Audi team in that respect.

A Porsche Taycan being towed. (Credit: Agero/Vimeo)

A Note from the Author

As a writer, I do my best to thoroughly qualify every source, and I choose not to publish a story if there is any doubt about the credibility of the information or the source. I have direct contact with the person that provided the information in this article, know his identity and profession, had several calls and exchanges with him and know people who have met him in person.

My intent is not to disseminate misleading or sensational information, and this is a guiding principle for all my work. Since my source has passed my credibility check through multiple channels and has repeatedly provided many in-depth technical details on the issue, I feel it is my duty to inform the public with this article while I don’t have hard evidence and therefore can’t confirm the information to be right. According to the information provided by the whistleblower, Porsche has decided to take a big risk on the health of its customers for cost, profit and reputation reasons.

As a German who is proud of the heritage of the automotive industry in my home country, and as a former Porsche customer, I am truly shocked by what the whistleblower has told me. The cheating scandal has changed the culture in the German automotive industry many have told me for years, but it looks like the same structural problems remain and lead the industry right into the next big scandal.

Disclaimer

The Author, Alex Voigt does not own or had ever any Porsche or VW Group stock, derivates or other direct or indirect investments in the company. There has been never any business relationship between the author, Porsche, and the VW Group. The original and first clues to this exclusive and disturbing story came from Christoph Krachten, who came across it while researching his German best-selling book about Tesla.

Alex Voigt Patreon Page: https://www.patreon.com/AlexVoigt

Advertisement

Alex Voigt resides in Germany and is an Engineer, Consultant, and Manager with experience of 25 years in Supply Chain Management, Software, and Process improvements in many industries including High Tech, Automotive, and Retail. Throughout his career that brought him into MD positions, he has met and learned from Mid- and Top Managers of most blue-chip companies in Germany and many international within transformational phases.

Advertisement
Comments

Elon Musk

Elon Musk echoes worries over Tesla control against activist shareholders

Elon Musk has spoken on several occasions of the “activist shareholders” who threaten his role at Tesla.

Published

on

Credit: xAI | X

Elon Musk continues to raise concerns over his control of Tesla as its CEO and one of its founders, as activist shareholders seem to be a viable threat to the company in his eyes.

Musk has voiced concerns over voting control of Tesla and the possibility of him being ousted by shareholders who do not necessarily have the company’s future in mind. Instead, they could be looking to oust Musk because of his political beliefs or because of his vast wealth.

We saw an example of that as shareholders voted on two separate occasions to award Musk a 2018 compensation package that was earned as Tesla met various growth goals through the CEO’s leadership.

Despite shareholders voting to award Musk with the compensation package on two separate occasions, once in 2018 and again in 2024, Delaware Chancery Court Judge Kathaleen McCormick denied the CEO the money both times. At one time, she called it an “unfathomable sum.”

Musk’s current stake in Tesla stands at 12.8 percent, but he has an option to purchase 304 million shares, which, if exercised, after taxes, he says, would bump his voting control up about 4 percent.

However, this is not enough of a stake in the company, as he believes a roughly 25 percent ownership stake would be enough “to be influential, but not so much that I can’t be overturned,” he said in January 2024.

Musk’s concerns were echoed in another X post from Thursday, where he confirmed he has no current personal loans against Tesla stock, and he reiterated his concerns of being ousted from the company by those he has referred to in the past as “activist shareholders.”

Elon Musk explains why he wants 25% voting share at Tesla: “I just want to be an effective steward of very powerful technology”

The CEO said during the company’s earnings call in late July:

“That is a major concern for me, as I’ve mentioned in the past. I hope that is addressed at the upcoming shareholders’ meeting. But, yeah, it is a big deal. I want to find that I’ve got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots. I think my control over Tesla, Inc. should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy.”

The X post from Thursday said:

There is a concern that Musk could eventually put his money where his mouth is, and if politicians and judges are able to limit his ownership stake as they’ve been able to do with his pay package, he could eventually leave the company.

The company’s shareholders voted overwhelmingly to approve Musk’s pay package. A vast majority of those who voted to get Musk paid still want him to be running Tesla’s day-to-day operations. Without his guidance, the company could face a major restructuring and would have a vastly new look and thesis.

Continue Reading

News

People are already finding value in Tesla Robotaxi services

Tesla initially launched its Robotaxi service in Austin, though the company more recently launched it in the Bay Area.

Published

on

Credit: Tesla

Tesla’s Robotaxi service is still in its earliest days, but some consumers are already finding surprising value in the autonomous ride-hailing system. 

This was hinted at in recent comments on social media platform X. 

Robotaxi Ramp

Tesla initially launched its Robotaxi service in Austin, though the company more recently launched it in the Bay Area. Tesla’s geofence for its Robotaxi service in the Bay Area is massive, covering several times the area that is currently serviced by rival Waymo. 

As noted by the EV community members on social media, going end-to-end in Tesla’s Bay Area geofence would likely take over an hour’s worth of driving. That’s an impressive launch for the Robotaxi service in California, and considering Tesla’s momentum, its California geofence will likely grow substantially in the coming months.

Secret Advantage

As noted by Tesla owner and photographer @billykyle, the Tesla Robotaxi service actually has key advantages for people who travel a lot for their work. As per the Tesla owner, using a Robotaxi service would give back so much of his time considering that he gets about 5-7 shoots per day at times. 

Advertisement

“I’ve been reflecting on how much of a game changer this is. As a photographer that runs my own business, servicing clients all around the Philadelphia area, I could ditch having a car and let an autonomous vehicle drive me between my 5-7 shoots I have per day. This would give me so much time back to work and message clients,” the photographer wrote in a post on X.

The Tesla owner also noted that the Robotaxi service could also solve issues with parking, as it could be tricky in cities. The Robotaxi service’s driverless nature also avoids the issue of rude and incompetent ride-hailing drivers, which are unfortunately prevalent in services such as Uber and Lyft. Ultimately, just like Unsupervised FSD, Tesla’s Robotaxi service has the potential to reclaim time for consumers. And as anyone in the business sphere would attest, time is ultimately money.

Continue Reading

News

Tesla Robotaxi and Supercharger Diner are killing a dreaded consumer tradition

Tesla is still just charging strictly for its services–while asking for zero tips.

Published

on

Credit: Joe Tegtmeyer/X

Tesla’s Robotaxi service and its newly launched Supercharger Diner are killing a longtime but increasingly dreaded consumer tradition in the United States. Based on videos taken of consumers using the Robotaxi service in the Bay Area, Tesla is still just charging strictly for its services–while asking for zero tips.

Tesla Services with Zero Tips

When Tesla launched the Robotaxi pilot in Austin, users quickly noticed that the company was not allowing riders to leave a tip for the service. If one were to try leaving a tip after a Robotaxi ride, the app simply flashes an image of Tesla’s meme hedgehog mascot with a “Just Kidding” message. 

At the time, this seemed like a small tongue-in-cheek joke from the electric vehicle maker. The initial Robotaxi pilot in Austin was rolled out on a small scale, after all, and some social media users speculated that tipping may eventually just be introduced to the service.

But upon the opening of the Tesla Supercharger Diner, consumers also observed that the facility does not allow tipping. Tesla’s notice is simple: “Gratuity: Tesla covers tipping for staff.” This means that employees who work at the Tesla Diner make enough to not rely on gratuities from consumers. 

And with the launch of the Robotaxi service in the Bay Area, users observed once more that Tesla is still not allowing tipping. This was highlighted by longtime Tesla owner @BLKMDL3, who shared a video of the Tesla Robotaxi app also briefly displaying the hedgehog mascot with a “Just Kidding” message when he tried leaving a tip.

Advertisement

Out of Control

As noted in a report from The Guardian, tipping has been a longstanding business practice in the United States, were service workers typically make less than the federal minimum wage. With this system in place, service workers end up relying on gratuities to make ends meet. This was understandable, but after the pandemic, tipping culture ended up going out of control.

On platforms such as Reddit, users have also complained about services like Uber asking for large tips for using their services. Consumers have also shared shocking experiences involving some services that ask for tips. These include self-checkout counters, drive-throughs, hotdog stands, drug stores, a bottled water stall at a jazz festival, an airport vending machine, a used bookstore, a cinema box office, and a children’s arcade, among others.

Continue Reading

Trending