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Tesla’s disruption is making Germany’s elite automakers very tense about the future

(Credit: Tesla)

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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. 

Tesla Model 3 production line in Gigafactory 3, Shanghai, China. (Credit: Tesla)

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.

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The Tesla Model S, X, and Model 3. (Photo: MotorTrend)

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.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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I subscribed to Tesla Full Self-Driving after four free months: here’s why

It has been incredibly valuable to me, and that is what my main factor was in considering whether to subscribe or not. It has made driving much less stressful and much more enjoyable.

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Credit: Teslarati

I have been lucky enough to experience Tesla Full Self-Driving for the entire duration of my ownership experience for free — for four months, I have not had to pay for what I feel is the best semi-autonomous driving suite on the market.

Today, my free trial finally ran out, and I had two choices: I could go without it for a period until I felt like I absolutely needed it, or I could subscribe to it, pay $99 per month, and continue to experience the future of passenger transportation.

I chose the latter, here’s why.

Tesla Full Self-Driving Takes the Stress Out of Driving

There are a handful of driving situations that I don’t really enjoy, and I think we all have certain situations that we would just rather not encounter. This is not to say that I won’t ever experience them as someone who has driven a car for 15 years (it feels weird saying that).

I don’t love to drive in cities; I really don’t like driving on I-695 on my way to Baltimore, and I truly hate parallel parking. All three things I can do and have done, all three within the past few weeks, too.

However, if I can avoid them, I will, and Tesla Full Self-Driving does that for me.

Tesla Full Self-Driving Eliminates the Monotony

I drive to my alma mater, Penn State University, frequently in the Winter as I am a season ticket holder to Wrestling and have been for 16 years now.

The drive to State College is over two hours and over 100 miles in total, and the vast majority of it is boring as I travel on Rt 322, which is straight, and there is a lot of nature to look at on the way.

I am willing to let the car drive me on that ride, especially considering it is usually very low traffic, and the vast majority of it is spent on the highway.

The drive, along with several others, is simply a boring ride, where I’d much rather be looking out the windshield and windows at the mountains. I still pay attention, but having the car perform the turns and speed control makes the drive more enjoyable.

Tesla Full Self-Driving Makes Navigating Easier

Other than the local routes that I routinely travel and know like the back of my hand, I’ve really enjoyed Full Self-Driving’s ability to get me to places — specifically new ones — without me having to constantly check back at the Navigation.

Admittedly, I’ve had some qualms with the Nav, especially with some routing and the lack of ability to choose a specific route after starting a drive. For example, it takes a very interesting route to my local Supercharger, one that nobody local to my area would consider.

But there are many times I will go to a new palce and I’m not exactly sure where to go or how to get there. The Navigation, of course, helps with that. However, it is really a luxury to have my car do it for me.

To Conclude

There was no doubt in my mind that when my Full Self-Driving trial was up, I’d be subscribing. It was really a no-brainer. I am more than aware that Full Self-Driving is far from perfect, but it is, without any doubt, the best thing about my Tesla, to me.

It has been incredibly valuable to me, and that is what my main factor was in considering whether to subscribe or not. It has made driving much less stressful and much more enjoyable.

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Tesla Diner becomes latest target of gloom and doom narrative

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tesla diner
Credit: Tesla

The Tesla Diner has been subject to many points of criticism since its launch in mid-2025, and skeptics and disbelievers claim the company’s latest novel concept is on its way down, but there’s a lot of evidence to state that is not the case.

The piece cites anecdotal evidence like empty parking lots, more staff than customers during a December visit, removed novelty items, like Optimus robot popcorn service and certain menu items, the departure of celebrity chef Eric Greenspan in November 2025, slow service, high prices, and a shift in recent Google/Yelp reviews toward disappointment.

The piece frames this as part of broader Tesla struggles, including sales figures and Elon Musk’s polarizing image, calling it a failed branding exercise rather than a sustainable restaurant.

This narrative is overstated and sensationalized, and is a good representation of coverage on Tesla by today’s media.

Novelty Fade is Normal, Not Failure

Any hyped launch, especially a unique Tesla-branded destination blending dining, Supercharging, and a drive-in theater, naturally sees initial crowds taper off after the “Instagram effect” wears down.

Tesla makes major change at Supercharger Diner amid epic demand

This is common for experiential spots in Los Angeles, especially pop-up attractions or celebrity-backed venues. The article admits early success with massive lines and social media buzz, but treats the return to normal operations as “dying down.”

In reality, this stabilization is a healthy sign of transitioning from hype-driven traffic to steady patronage.

Actual Performance Metrics Contradict “Ghost Town” Claims

  • In Q4 2025, the Diner generated over $1 million in revenue, exceeding the average McDonald’s location
  • It sold over 30,000 burgers and 83,000 fries in that quarter alone. These figures indicate a strong ongoing business, especially for a single-location prototype focused on enhancing Supercharger experiences rather than competing as a mass-market chain

Conflicting On-the-Ground Reports

While the article, and other similar pieces, describe a half-full parking lot and sparse customers during specific off-peak visits, other recent accounts push back:

  • A January 2026 X post noted 50 of 80 Supercharger stalls were busy at 11 a.m., calling it “the busiest diner in Hollywood by close to an order of magnitude

  • Reddit discussions around the same time describe it as not empty when locals drive by regularly, with some calling the empty narrative “disingenuous anti-Tesla slop.”

Bottom Line

The Tesla Diner, admittedly, is not the nonstop circus it was at launch–that was never sustainable or intended. But, it’s far from “dying” or an “empty pit stop.”

It functions as a successful prototype: boosting Supercharger usage, generating solid revenue, and serving as a branded amenity in the high-traffic EV market of Los Angeles.

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Tesla stands to win big from potential adjustment to autonomous vehicle limitations

Enabling scale, innovation, and profitability in a sector that is growing quickly would benefit Tesla significantly, especially as it has established itself as a leader.

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Credit: Patrick Bean | X

Tesla stands to be a big winner from a potential easing of limitations on autonomous vehicle development, as the United States government could back off from the restrictions placed on companies developing self-driving car programs.

The U.S. House Energy and Commerce subcommittee will hold a hearing later this month that will aim to accelerate the deployment of autonomous vehicles. There are several key proposals that could impact the development of self-driving cars and potentially accelerate the deployment of this technology across the country.

These key proposals include raising the NHTSA’s exemption cap from 2,500 to 90,000 vehicles per year per automaker, preempting state-level regulations on autonomous vehicle systems, and mandating NHTSA guidelines for calibrating advanced driver assistance systems (ADAS).

Congress, to this point, has been divided on AV rules, with past bills like the 2017 House-passed measure stalling in the Senate. Recent pushes come from automakers urging the Trump administration to act faster amid competition from Chinese companies.

Companies like Tesla, who launched a Robotaxi service in Austin and the Bay Area last year, and Alphabet’s Waymo are highlighted as potential beneficiaries from lighter sanctions on AV development.

The NHTSA recently pledged to adopt a quicker exemption review for autonomous vehicle companies, and supporters of self-driving tech argue this will boost U.S. innovation, while critics are concerned about safety and job risks.

How Tesla Could Benefit from the Proposed Legislation

Tesla, under CEO Elon Musk’s leadership, has positioned itself as a pioneer in autonomous driving technology with its Full Self-Driving software and ambitious Robotaxi plans, including the Cybercab, which was unveiled in late 2024.

The draft legislation under consideration by the U.S. House subcommittee could provide Tesla with significant advantages, potentially transforming its operational and financial landscape.

NHTSA Exemption Cap Increase

First, the proposed increase in the NHTSA exemption cap from 2,500 to 90,000 vehicles annually would allow Tesla to scale up development dramatically.

Currently, regulatory hurdles limit how many fully autonomous vehicles can hit the roads without exhaustive approvals. For Tesla, this means accelerating the rollout of its robotaxi fleet, which Musk envisions as a network of millions of vehicles generating recurring revenue through ride-hailing. With Tesla’s vast existing fleet of over 6 million vehicles equipped with FSD hardware, a higher cap could enable rapid conversion and deployment, turning parked cars into profit centers overnight.

Preempting State Regulations

A united Federal framework would be created if it could preempt State regulations, eliminating the patchwork of rules that currently complicate interstate operations. Tesla has faced scrutiny and restrictions in states like California, especially as it has faced harsh criticism through imposed testing limits.

A federal override of State-level rules would reduce legal battles, compliance costs, and delays, allowing Tesla to expand services nationwide more seamlessly.

This is crucial for Tesla’s growth strategy, as it operates in multiple markets and aims for a coast-to-coast Robotaxi network, competing directly with Waymo’s city-specific expansions.

Bringing Safety Standards to the Present Day

Innovation in the passenger transportation sector has continued to outpace both State and Federal-level legislation, which has caused a lag in the development of many things, most notably, self-driving technology.

Updating these outdated safety standards, especially waiving requirements for steering wheels or mirrors, directly benefits Tesla’s innovative designs. Tesla wanted to ship Cybertruck without side mirrors, but Federal regulations required the company to equip the pickup with them.

Cybercab is also planned to be released without a steering wheel or pedals, and is tailored for full autonomy, but current rules would mandate human-ready features.

Streamlined NHTSA reviews would further expedite approvals, addressing Tesla’s complaints about bureaucratic slowdowns. In a letter written in June to the Trump Administration, automakers, including Tesla, urged faster action, and this legislation could deliver it.

In Summary

This legislation represents a potential regulatory tailwind for Tesla, but it still relies on the government to put forth action to make things easier from a regulatory perspective. Enabling scale, innovation, and profitability in a sector that is growing quickly would benefit Tesla significantly, especially as it has established itself as a leader.

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