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Tesla CEO Elon Musk says Volkswagen is no. 2 in electric vehicles

(Credit: Herbert Diess/LinkedIn)

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Elon Musk said Volkswagen was the company making the most progress on electric vehicles following his automaker, Tesla, after being asked which startups impressed him the most during an interview with Financial Times.

Interestingly, the question did not ask Musk which car company was most impressive or was making the most progress, it actually asked the Tesla CEO which startup was doing the best.

Musk failed to recognize any company based in the United States as a startup making the most progress on the electric vehicle front. Instead, Musk stated Volkswagen was doing the best with its electric vehicle program, but also recognized that there “will be some very strong companies” emerging from the Chinese market.

Musk said during the interview:

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“Well, I think the company the most progress besides Tesla is actually VW, which is not a startup but could be viewed in some ways as a startup from an electric vehicle standpoint. So, VW is doing the most on the electric vehicle front. I think there will be some very strong companies coming out of China. There’s just a lot of super talented, hard-working people in China, who strongly believe in manufacturing. They won’t just be burning the midnight oil, they’ll be burning the 3 am oil. They won’t even leave the factory type-of-thing, whereas, in America, people are trying to avoid going to work at all.”

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Volkswagen sold ~99k EVs out of 1.9M in Q1, seeks to gain 10% market share in North America by 2030

Interestingly, Musk did not mention either Rivian or Lucid, two of the United States’ most recognizable names in EV startups. The companies are arguably making the most progress of any EV startups in the country, especially when compared to the tumultuous roads of both Nikola and Lordstown. While Swedish company Polestar is also beginning to successfully expand its product line into more regions, it appeared that Musk was unwilling to tip his cap to these companies, but it may not mean they aren’t impressing him in some aspects.

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Tesla has battled with Rivian in the courtroom, and Musk and Lucid CEO Peter Rawlinson are former co-workers. Musk has been critical of Rawlinson’s tenure at Tesla, and Rawlinson has even responded with his own ideas regarding the situation. However, Musk has also offered advice to these rivals in the past, attempting to potentially save them from traveling the tough path Tesla was forced to follow when paving the way for other car companies.

Meanwhile, Musk has shared somewhat of a friendship with Volkswagen AG CEO Herbert Diess. The two have shared a few quirky photos together and even given each other test drives of their respective company’s best EVs. Volkswagen struggled with software early on when it released the ID.3. However, the German company has effectively sold out of EVs in 2022, and across its brands, it sold the most EVs in Europe in 2021.

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.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Signature Model S, X owners get hit with crazy no-resale clause

With production of the Model S and X winding down to focus on next-generation projects like the Optimus robot, Tesla is building just 250 units of each model. Priced at $159,420, these exclusive vehicles come loaded with bespoke features and the full Luxe Package—but buyers must sign a binding contract before delivery that bars resale for one full year.

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Tesla Signature Model S and X owners got hit with a crazy no-resale clause by the company, a move that has been used before to limit the immediate resale of a vehicle to obtain a sizeable profit.

Tesla has introduced a strict “No Resale Agreement” for its ultra-limited Signature Edition Model S and Model X Plaid vehicles, signaling the automaker’s determination to keep these final flagship models in the hands of genuine enthusiasts rather than speculators.

With production of the Model S and X winding down to focus on next-generation projects like the Optimus robot, Tesla is building just 250 units of each model. Priced at $159,420, these exclusive vehicles come loaded with bespoke features and the full Luxe Package—but buyers must sign a binding contract before delivery that bars resale for one full year.

Purchasers promise they “will not sell or otherwise attempt to sell the vehicle within the first year following your vehicle’s delivery date.”

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Violators face steep consequences: Tesla can pursue liquidated damages equal to $50,000 or the full amount received from any sale or transfer, whichever is greater. The company also reserves the right to refuse future vehicle sales to anyone who breaches the clause. Orders are account-specific, requiring buyers to log in with their personal Tesla account, which further complicates any informal transfers.

The restrictions extend beyond the one-year lockout. Even after the prohibition period ends, key elements of the Signature Edition’s appeal do not transfer with the car. The Luxe Package—bundling lifetime Full Self-Driving (Supervised), free lifetime Supercharging, and permanent Premium Connectivity—terminates upon any change in ownership.

While four years of Premium Service, tire, and windshield protection plans do transfer, the high-value software and charging perks effectively vanish for the second owner. This non-transferability has long been Tesla’s policy for Luxe-equipped vehicles, but it carries extra weight on a nearly $160,000 limited-run model.

Tesla’s move is a direct response to past flipping of rare editions. By tying the car to the original buyer’s account and imposing financial penalties, the company aims to curb gray-market speculation that could drive prices far above MSRP.

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Critics of the no-resale clause argue that the agreement limits personal property rights and could complicate legitimate life events like relocation or financial hardship.

For now, the policy appears ironclad. Deliveries of the Signature Editions are expected to begin in May 2026, complete with Garnet Red paint, gold-accented badging, Alcantara interiors, yoke steering, and unique numbered plaques.

In an era when limited-edition vehicles often become instant investment pieces, Tesla is betting that true fans will embrace the rules. Whether the No Resale Agreement successfully protects the final chapter of the Model S and X legacy remains to be seen—but one thing is clear: these will be among the most tightly controlled Teslas ever sold.

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Tesla just tipped its hand on a major Cybercab feature as production hits Plaid Mode

Tesla has delivered a clear signal that its Robotaxi ambitions are shifting into high gear. On April 17, longtime factory observer and drone pilot Joe Tegtmeyer captured drone footage and still images showing approximately 14 freshly built Cybercabs parked in the outbound lot—each one conspicuously lacking a steering wheel.

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Credit: Joe Tegtmeyer | X

Tesla just tipped its hand on a major Cybercab feature as it is putting production into Plaid Mode, but a clear indication of what the company plans to do with the vehicle is now apparent.

Tesla has delivered a clear signal that its Robotaxi ambitions are shifting into high gear, and it’s doing it with full autonomy in mind.

On April 17, longtime factory observer and drone pilot Joe Tegtmeyer captured drone footage and still images showing approximately 14 newly built Cybercabs parked in the outbound lot, each conspicuously lacking a steering wheel, and potentially pedals.

Tegtmeyer’s post highlighted the significance of this development: The images and video reveal sleek, two-seat Cybercabs in their final production form: no driver controls, no side mirrors, and the minimalist interior first unveiled at Tesla’s “We Robot” event in October 2024.

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These units contrast with earlier test vehicles spotted at the factory’s crash-test area, which carried temporary steering wheels and pedals to meet current federal regulations during data-collection phases.

The outbound-lot vehicles appear complete, with production wheels, tire stickers, and the signature Cybercab styling ready for deployment.

This sighting represents a pivotal transition. Tesla designed the Cybercab from the ground up as a purpose-built robotaxi, engineered for unsupervised Full Self-Driving (FSD) operation. Removing manual controls eliminates cost, complexity, and weight while maximizing interior space and range.

The move also signals that Tesla has cleared initial validation hurdles and is now building vehicles to the exact specification intended for commercial robotaxi service.

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Industry watchers note the timing aligns with Tesla’s broader rollout plans. Production of early Cybercabs began in late 2025 and early 2026, primarily for internal testing and regulatory compliance.

Federal Motor Vehicle Safety Standards currently limit vehicles without steering wheels to 2,500 units per year without exemption, a cap that Tesla is navigating through ongoing filings.

Tesla Cybercab spotted next to Model Y shows size comparison

The appearance of steering-wheel-free units in the outbound lot suggests the company is preparing a small initial fleet—likely for Austin pilot operations or further validation—while pushing for regulatory relief to scale output.

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The development comes as Tesla ramps its dedicated Cybercab line at Gigafactory Texas. If the Monday surge materializes as predicted, observers expect dozens more units to accumulate rapidly.

With unsupervised FSD advancing and regulatory conversations ongoing, these wheel-less Cybercabs parked under the Texas sun represent more than hardware—they embody Tesla’s bet that autonomous mobility is no longer a prototype dream but an imminent reality.

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Tesla preps new Model Y trim for India, a once-elusive market

Tesla’s journey into India began with significant hurdles. For years, the electric vehicle giant faced steep import tariffs ranging from 70 percent to 110 percent on fully built vehicles, which dramatically inflated prices and stalled entry plans.

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Tesla is preparing to bring its newest Model Y trim to India, a once-elusive market that was hesitant to allow any vehicles built outside the market into its automotive sector.

Now, it is preparing to allow China-built Model Y vehicles to come into the country, in an effort to expand sales and offer what is a widely-requested variant to Indian customers.

Tesla’s journey into India began with significant hurdles. For years, the electric vehicle giant faced steep import tariffs ranging from 70 percent to 110 percent on fully built vehicles, which dramatically inflated prices and stalled entry plans.

Elon Musk repeatedly criticized these duties as among the world’s highest, making premium EVs like the Model Y prohibitively expensive for most buyers in the price-sensitive market.

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After prolonged negotiations and multiple delays, Tesla finally debuted in July 2025 with a quiet rollout focused on luxury segments. It opened showrooms in Mumbai and New Delhi, importing standard Model Y SUVs from its Shanghai Gigafactory.

Tesla China posts strong February wholesale growth at Gigafactory Shanghai

Yet the launch proved challenging: vehicles carried sticker prices near $70,000, leading to tepid demand. Bloomberg reported only about 600 orders in the first two months, while official data showed just 227 registrations for all of 2025—far below internal targets. By early 2026, the company offered discounts of up to ₹200,000 ($2,200) to clear unsold inventory.

Now, less than a year later, Tesla is demonstrating resilience and adaptability. According to a Bloomberg report on April 17, the company is preparing to launch the Model Y L—a six-seat, long-wheelbase variant with three-row seating—as early as next week.

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This marks Tesla’s first new product introduction in India since its initial entry. Notably, the newest Model Y configuration, which debuted in China in 2025 and features extended space tailored for families, will once again be exported directly from Tesla’s Shanghai Gigafactory.

The move highlights a shift from early struggles to a more targeted approach, leveraging an existing platform to better suit Indian preferences for multi-generational, spacious SUVs without committing to immediate local production.

Tesla launches in India with Model Y, showing pricing will be biggest challenge

The Model Y L’s arrival underscores Tesla’s incremental strategy amid global EV headwinds and India’s unique challenges, including limited charging infrastructure and competition from local manufacturers.

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While tariffs continue to keep pricing in the premium segment, the six-seater variant aims to broaden appeal beyond early luxury adopters by addressing practical family needs.

This evolution, from battling high barriers and disappointing initial sales to exporting its latest derivative model, signals cautious optimism.

Success with the Model Y L could strengthen Tesla’s foothold in one of the world’s most populous markets and potentially pave the way for deeper investments, such as localized manufacturing, should tariff relief or policy shifts materialize.

For now, the China-to-India supply chain represents a pragmatic bridge over the very obstacles that once made entry so difficult.

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