News
Tesla can tap into a $360B market in Europe, but it has to address its service first
SAP SE, a German software maker and one of Europe’s largest tech companies, provides cars for company and personal use as a perk for its workers. And as electric cars continue to gain ground in the region, SAP has noted that its employees are starting to show increasing interest Teslas. Despite this interest and specific requests for Teslas every month, SAP has decided not to purchase any of the American firm’s electric cars. The tech firm’s rejection of Teslas was primarily due to one key factor: the electric car maker’s small service network.
Keeping the Status Quo
SAP’s company car fleet today remains populated by vehicles from veteran premium automakers like BMW AG and Mercedes-Benz. In a statement to Bloomberg, Steffen Krautwasser, who manages the company’s 17,000 company cars in Germany, explained SAP’s stance on Tesla’s electric vehicles. “(Servicing teams) need to be there at short notice, and Tesla still has some work to do. The interest in Teslas is extremely high, but we simply can’t offer them at this point,” Krautwasser said.

SAP is not the only company with strong views about Tesla’s service network in Europe or its lack thereof. Ursula von Stetten, a spokesperson for chemicals giant BASF SE, also cited that Teslas couldn’t be options for its 50,000 German employees until the electric car maker establishes a robust service network. “Teslas will be available as soon as the appropriate infrastructure is in place,” the spokesperson said.
A $360 Billion Market
Considering these sentiments, it appears that Tesla’s service network in Europe is costing Elon Musk a significant number of EV sales. About 60% of all new vehicle sales in Europe, after all, are made through corporate channels. This translates to the company car market in the region being worth about $360 billion. So notable is the size of Europe’s corporate vehicle segment that the industry is expected to play a crucial role in determining just how fast the region could retire the internal combustion engine and embrace sustainable transportation. That being said, Tesla is, for now at least, largely absent from this market.
Apart from Tesla’s weak service network in Europe, companies have also cited the electric car maker’s refusal to offer bulk discounts and its lack of long-standing relationships with the region’s biggest companies as reasons why the American electric car maker is lagging behind its local rivals in the corporate vehicle segment. This is true to a point, especially considering that veteran automakers have decades of experience tailoring some of their vehicles to be the perfect company cars. Tesla does not do this with its vehicles, though many of its trademark features like Autopilot would likely be appreciated by corporate workers who spend long hours at the office.

Electric Opportunities
What’s interesting is that Europe’s corporate car sales are actually rising by about a fifth over the past decade as companies take advantage of generous subsidies, including tax breaks, value-added tax rebates, and depreciation write-offs. Transport & Environment, a Brussels-based research firm, has remarked that in Europe’s eight biggest corporate vehicle markets alone, the aid is worth $38 billion per year. But inasmuch as Tesla is lagging in Europe’s company car market, the region’s aggressive sustainability goals hint that the electric car maker has the potential to close the gap between itself and legacy automakers.
So far, only about 4% of cars bought by European companies in 2019 had a plug, and this list includes Plug-in Hybrid Vehicles. Amidst the region’s push for sustainability, battery-electric vehicles like the Tesla Model 3 and Model Y may very well become preferable alternatives to cars typically used as company vehicles. Germany, Italy, and France are among these regions, with the countries boosting subsidies for battery-powered vehicles as part of their pandemic stimulus programs last year. The trend is continuing too, with BloombergNEF estimating that Europe would likely see sales of about 1.8 million hybrid and battery electric vehicles this year alone. The following years would likely see this number rise even further.
To tap into Europe’s corporate vehicle segment, Tesla has to ramp its service network at a rate that’s far more aggressive than before. And while Teslas generally require a lot less maintenance due to their all-electric design, the company has to tangibly exhibit its capability to service multitudes of vehicles without breaking a sweat. A robust mobile service team would be invaluable in this light, and more dedicated service locations would be extremely beneficial. Such improvements would likely increase the confidence of companies whose employees are already requesting Teslas to be their corporate vehicles. If Tesla is able to accomplish this, then the Elon Musk-led electric car maker might be on track to take a piece out of of Europe’s $360 billion corporate car pie.
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Elon Musk
Elon Musk’s Boring Co goes extra hard in Nashville with first rock-crushing TBM
The Boring Company’s machine for the project is now in final testing.
The Boring Company is gearing up to tackle one of its toughest projects yet, a new tunnel system beneath Nashville’s notoriously tough limestone terrain. Unlike the soft-soil conditions of Las Vegas and Austin, the Music City Loop will require a “hard-rock” boring machine capable of drilling through dense, erosion-resistant bedrock.
The Boring Company’s machine for the project is now in final testing.
A boring hard-rock tunneling machine
The Boring Company revealed on X that its new hard-rock TBM can generate up to 4 million pounds of grip force and 1.5 million pounds of maximum thrust load. It also features a 15-filter dust removal system designed to keep operations clean and efficient during excavation even in places where hard rock is present.
Previous Boring Co. projects, including its Loop tunnels in Las Vegas, Austin, and Bastrop, were dug primarily through soft soils. Nashville’s geology, however, poses a different challenge. Boring Company CEO and President Steve Davis mentioned this challenge during the project’s announcement in late July.
“It’s a tough place to tunnel, Nashville. If we were optimizing for the easiest places to tunnel, it would not be here. You have extremely hard rock, like way harder than it should be. It’s an engineering problem that’s fairly easy and straightforward to solve,” Davis said.
Nashville’s limestone terrain
Experts have stated that the city’s subsurface conditions make it one of the more complex tunneling environments in the U.S. The Outer Nashville Basin is composed of cherty Mississippian-age limestone, a strong yet soluble rock that can dissolve over time, creating underground voids and caves, as noted in a report from The Tennessean.
Jakob Walter, the founder and principal engineer of Haushepherd, shared his thoughts on these challenges. “Limestone is generally a stable sedimentary bedrock material with strength parameters that are favorable for tunneling. Limestone is however fairly soluble when compared to other rack materials, and can dissolve over long periods of time when exposed to water.
“Unexpected encounters with these features while tunneling can result in significant construction delays and potential instability of the excavation. In urban locations, structures at the ground surface should also be constantly monitored with robotic total stations or similar surveying equipment to identify any early signs of movement or distress,” he said.
Elon Musk
Elon Musk shares ridiculous fact about Optimus’ hand demos
It appears that Optimus’ V3 iteration is still very much under wraps.
Elon Musk recently revealed something quite shocking about the Optimus demonstration hand that was showcased at the 2025 Annual Shareholder Meeting. As per the CEO, the complex robotic hand that impressed the event’s attendees was not a component of Optimus V3 at all.
Needless to say, it appears that Optimus’ V3 iteration is still very much under wraps.
Optimus’s hand
Even in Tesla’s We, Robot event last year, the company showcased a robotic hand that seemed capable of performing complex tasks. A similar hand was showcased at the recent investor event. It was then no surprise that some attendees and EV community members assumed that the robotic component, which was very dexterous, was a preview of Optimus V3’s hand.
As per Elon Musk in a recent post on X, however, this was not the case. While the robotic hand that Tesla showcased at the 2025 Annual Shareholder Meeting was already very impressive, it was still a V2 component. In response to a quote post from his mom Maye Musk, who noted that “Elon told me a few times that the hand is the most difficult part of the robot,” Elon Musk clarified that the impressive component was still from Optimus V2.
“This is just the V2 Optimus hand. The V3 hand is another level beyond this. Exquisite engineering,” Musk wrote in his post on X.
Not like Tesla
Tesla is designing Optimus to be a potential replacement for humans in some of the world’s most delicate tasks, such as surgery. It is then extremely important for Optimus’ hand to be very dexterous and refined in its movements. This is something that even companies that are also producing humanoid robots have yet to accomplish fully. Musk highlighted this during the Annual Shareholder Meeting, when he discussed how Tesla is really the only company that can scale humanoid robots properly.
“You will see certainly many companies showing demonstration robots. There’s really three things that are super difficult about robots. One is the engineering of the forearm and hand because the human hand is an incredible thing, actually. It’s super dexterous.
“So, engineering the hand really well, the real-world AI, and then volume manufacturing. Those are generally the things that are missing. One or more of those things are missing from other companies. So Tesla is the only one that has all three of those,” Musk said.
Energy
Tesla starts hiring efforts for Texas Megafactory
Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage.
Tesla has officially begun hiring for its new $200 million Megafactory in Brookshire, Texas, a manufacturing hub expected to employ 1,500 people by 2028. The facility, which will build Tesla’s grid-scale Megapack batteries, is part of the company’s growing energy storage footprint.
Tesla’s hiring efforts for the Texas Megafactory are hinted at by the job openings currently active on the company’s Careers website.
Tesla’s Texas Megafactory
Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage, similar to the Lathrop Megafactory in California. Tesla’s Careers website currently lists over 30 job openings for the site, from engineers, welders, and project managers. Each of the openings is listed for Brookshire, Texas.
The company has leased two buildings in Empire West Business Park, with over $194 million in combined property and equipment investment. Tesla’s agreement with Waller County includes a 60% property tax abatement, contingent on meeting employment benchmarks: 375 jobs by 2026, 750 by 2027, and 1,500 by 2028, as noted in a report from the Houston Business Journal. Tesla is required to employ at least 1,500 workers in the facility through the rest of the 10-year abatement period.
Tesla’s clean energy boom
City officials have stated that Tesla’s arrival marks a turning point for the Texas city, as it highlights a shift from logistics to advanced clean energy manufacturing. Ramiro Bautista from Brookshire’s economic development office, highlighted this in a comment to the Journal.
“(Tesla) has great-paying jobs. Not just that, but the advanced manufacturing (and) clean energy is coming to the area,” he said. “So it’s not just your normal logistics manufacturing. This is advanced manufacturing coming to this area, and this brings a different type of job and investment into the local economy.”
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