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Tesla’s disruption is making Germany’s elite automakers very tense about the future
There was once a time when Germany’s largest automakers looked on with amusement as Tesla, a small Silicon Valley electric car maker, purchased a gigantic car factory in Fremont, CA to produce its first ground-up premium sedan. Today, amidst the Model 3’s disruption and the impending arrival of the Model Y, it appears that no one in Das Auto is laughing anymore.
Electrification is something that used to be scoffed at, especially among the industry’s serious players. When Tesla was starting out, the transportation sector was still fully committed to the internal combustion engine. And in this era, Germany’s elite three — Daimler, Volkswagen, and BMW — reigned supreme. Their vehicles were sought after, and they were known for their power and pedigree. That was, at least, until upstart companies such as Tesla entered the picture.
Tesla represented everything that legacy auto was not. Instead of relying fully on a vast dealer network, Tesla sold its cars on its own. Instead of relying on a network of suppliers, Tesla adopted a vertically-integrated model. Instead of spamming its cars with all the plush amenities found in traditional luxury cars, Tesla’s EVs were spartan and minimalistic. These little differences, coupled with the fact that its vehicles are unlike any other on the road in terms of performance and tech, made the electric car maker a brand to watch among consumers looking to purchase a vehicle.
What really makes Tesla a pretty concerning opponent is the company’s dedication to its mission — to accelerate the advent of sustainability. This means that the company is about so much more than just profits. It’s a company that is legitimately trying its best to change the world, and it is beckoning everyone for support. And support it has gained. Among automakers, Tesla currently stands supreme according to social media presence. Today, the Model 3 is outselling mainstays like the BMW M3, and the arrival of the Model Y could end up disrupting a market previously held by cars like the Porsche Macan.
Today, Tesla stands as a leader in the EV market, with vehicles that have advanced driver-assist features such as Autopilot, a Full Self-Driving suite that includes capabilities like Smart Summon, and a system that constantly improves through free over-the-air updates. With these, Tesla’s electric cars such as the Model S and Model 3 have dominated their respective EV segments.
So how did Tesla end up disrupting the market even if Das Auto had all the resources all along to beat Tesla at its own game years ago? Perhaps it’s hubris, or maybe it was simply an honest mistake. Nevertheless, Tesla has now reached a point where it would be very difficult to reach and overtake, especially when it comes to the tech and batteries of its vehicles. This was highlighted when Volkswagen reportedly got its hands on a Mid Range Tesla Model 3. After tearing down the vehicle, the veteran automaker was reportedly shocked at how advanced the vehicle was.
Sajjad Khan, a Pakistani-born Daimler executive who is a member of the divisional board for CASE (Connected, Autonomous, Shared, Electric) at Mercedes-Benz, believes that this does not need to be the case. In a recent town hall meeting, Khan told an audience that the time is nigh for Germany’s auto sector to get a wake-up call.
“We need a wake-up call. We have to change fundamentally — as individuals, as departments, as a company, as a country. If we don’t, we’re going to be facing tough times ahead. We need to rebuild the mentality that made the economic miracle (in postwar Germany) possible. And we can’t wait until we have fallen on our faces to do this,” he said.
Fortunately, it may be too premature to dismiss Germany’s veteran automakers and their EV efforts. Porsche proved to the world that it can match and perhaps even exceed the performance of Tesla’s flagship sedan with the Taycan, though it had to make do with significantly less range and a far higher price. Volkswagen, for its part, is spending large amounts in its efforts to produce electric vehicles. The company is looking to conduct its ramp quickly, to the point where it would no longer sell diesel and gasoline cars by 2040.
That’s what one could call the end of an era.
Elon Musk
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
What began as an open secret in the energy industry was confirmed by the U.S. Department of the Interior on Monday: Tesla is the buyer behind LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
What began as an open secret in the energy industry is becoming more real after the U.S. Department of the Interior named Tesla as the stakeholder in the LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
Tesla and LG Energy Solution are expanding their partnership to build a LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027. The announcement, made as part of the Indo-Pacific Energy Security Summit results, ends months of speculation.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain.”, notes a press release on the U.S. Department of the Interior website.
Tesla has long utilized China’s Contemporary Amperex Technology Co. (CATL), the world’s largest LFP battery maker, as one of its primary suppliers. That relationship made financial sense for years, considering that Chinese LFP cells were cheap, abundant, and reliable. But with escalated tariffs on Chinese imports and an increasingly growing Tesla Energy business that’s particularly reliant on LFP cells for products including its Megapack battery storage units designed for utilities and large-scale commercial projects.
The announcement of a deepened partnership between LG Energy Solution and Tesla has strategic logic for both parties. For Tesla, it secures a tariff-compliant, domestically produced battery supply for its fast-growing energy division. LGES, now producing LFP batteries in Michigan, becomes the only major supplier currently scaling U.S. production, outpacing rivals like Samsung SDI and SK On. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site, with a production capacity of 50 GWh per year. LG Energy said the contract includes options to extend the supply period by up to seven years and boost volumes based on further consultations.
For the broader industry, the ripple effects are significant. This deal signals that domestic battery manufacturing can be financially viable and not just aspirational. Utilities, energy developers, and rival automakers will take note as American-made LFP supply becomes a competitive reality rather than a distant promise.
For consumers, the benefits will take time but are real. A more resilient, U.S.-based supply chain means fewer price shocks from trade disputes, more stable Megapack availability for the grid storage projects that reduce electricity costs, and long-term downward pressure on energy storage prices as domestic production scales.
Deliveries are set to begin in 2027 and run through mid-2030, and as grid storage demand accelerates, reliable, US-made battery supply is no longer a future ambition. It is becoming a core requirement of the country’s energy strategy.
News
Tesla plans for largest Australian Supercharger yet
The company has a 20-stall site in the city of Goulburn in New South Wales, which is an ideal location for trips between Sydney and Canberra, two major cities.
Tesla is planning to build its largest Supercharger in Australia yet, expanding on the infrastructure the company has built for electric vehicles.
The company has a 20-stall site in the city of Goulburn in New South Wales, which is an ideal location for trips between Sydney and Canberra, two major cities.
However, according to The Driven, a new Australian Supercharger is on the way, and it is going to be the biggest in the country, accounting for more than 25 stalls total. They will likely be V4 Superchargers, Tesla’s fastest piles that enable some serious range for cars that will plug in.
@LudicrousFeed Before I forget, one for tonight. Highway service centre near Mackay with 25+ charging stalls!
Website has a couple of video renders too.https://t.co/WkuklxE7tk pic.twitter.com/BxKQ8bDUZ7— ⚡chuqtas (@chuqtas) March 11, 2026
Tesla is operating 148 active Supercharger sites in Australia, with 80 of those being available to non-Tesla EVs as a part of the company’s initiative to make things accessible for all electric vehicle owners.
The expansion of Tesla Superchargers is welcome for all EV owners, especially as there are so many automakers that have access to the network. It is widely reliable and extremely dependable; it is tough to find a Supercharger location that is completely out of service.
The opening of the stalls will be welcome for the Tesla owners of Australia, especially as the Model Y continues to be a major contributor to the company’s prowess in the market.
Tesla’s sales performance in Australia showed a mixed but challenging picture in 2025, with the company delivering 28,856 new vehicles, marking a significant 24.8% decline from 38,347 units in 2024.
This represented the brand’s largest annual drop on record and the second consecutive year of decline, amid intensifying competition from Chinese EV makers like BYD and shifting buyer preferences toward SUVs. The Tesla Model Y remained a standout performer and Australia’s best-selling electric vehicle, with 22,239 deliveries, up 4.6percent year-over-year, accounting for about 77 percent of Tesla’s total sales.
The mid-year launch of the updated “Juniper” Model Y helped sustain momentum in the popular mid-size SUV segment.
In contrast, the Model 3 sedan struggled sharply, plummeting 61.3 percent to just 6,617 units, as consumers favored SUVs and faced growing options in the sedan category.
Despite the overall dip, Tesla held onto leadership in the EV segment, capturing roughly 28 percent of the BEV market. Australia’s EV market grew robustly, surpassing 156,000 sales and reaching 13 percent market share, up 38.7 percent from 2024, highlighting strong broader adoption even as Tesla faced headwinds.
Early 2026 data suggests a rebound, with EV sales nearly doubling year-over-year in February and the Model Y showing strong gains, positioning Tesla for potential recovery amid ongoing competition.
News
Tesla Model Y L gets new entertainment feature
Beyond audio quality, Immersive Sound X aligns with Tesla’s ecosystem of over-the-air updates, potentially allowing future refinements.
Tesla is including a new entertainment feature in the Model Y L, improving the vehicle even further and making it what appears to be the best configuration of the all-electric crossover globally.
Unfortunately, we in the U.S. do not yet have access to the vehicle, and the plans for it to enter the market remain up in the air, as CEO Elon Musk has said it could appear late this year. However, there is nothing concrete at this time.
Tesla’s latest enhancement to the Model Y L is a new Immersive Sound X feature, exclusive to the Model Y L.
Model YL has new sound system setting. Immersive Sound X. This is NOT on the new Y and 3 pic.twitter.com/7OpJuzyoGf
— Electric Future (@electricfuture5) March 16, 2026
It aims to transform the in-car listening experience into something truly cinematic. First introduced by Tesla China in October 2025, this advanced audio mode is now rolling out to deliveries in Australia and New Zealand, highlighting Tesla’s approach to region-specific premium upgrades.
At its core, Immersive Sound X leverages real-time sound extraction technology to create a customizable 3D soundstage. Using advanced algorithms, it analyzes audio tracks to separate direct sounds, such as vocals or lead instruments, from ambient elements like echoes and reverb.
The system then positions direct sounds front and center while diffusing ambient sounds to the side and rear speakers, simulating an expansive virtual environment. This results in a heightened sense of depth and spatial awareness, making listeners feel as if they’re in a concert hall or studio.
What sets Immersive Sound X apart from the standard Immersive Sound found in other Tesla models is its hardware dependency and enhanced processing. The Model Y L boasts an 18-speaker system with a subwoofer, compared to the 15-speaker setup, plus a subwoofer, in the Model Y Long Range’s previous premium audio configuration.
This upgrade provides more “kick” and precision, enabling finer control over the soundstage. Unlike traditional surround sound, which requires multi-channel mixes like Dolby Atmos, Immersive Sound X works with any stereo source from platforms like Spotify or Apple Music, so every owner will be able to use it.
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
You can fine-tune the experience via an adjustable immersion slider, scaling the “size” of the virtual space to personal preferences. This caters to a more custom sound.
An Auto mode intelligently adapts based on media type, whether it’s music, podcasts, or videos, ensuring optimal immersion without manual tweaks. This feature is unavailable on standard Model Y variants (with 7 or 15 speakers) or Model 3 trims, underscoring Tesla’s strategy to differentiate higher trims through superior hardware and software integration.
Beyond audio quality, Immersive Sound X aligns with Tesla’s ecosystem of over-the-air updates, potentially allowing future refinements.
For audiophiles and casual listeners alike, it elevates mundane commutes into immersive journeys, proving Tesla’s commitment to blending cutting-edge tech with user-centric design.
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
Tesla plans for largest Australian Supercharger yet
