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Tesla is a pioneer that drives Volkswagen’s EV initiatives, says CEO Herbert Diess
Volkswagen CEO Herbert Diess was recently asked about his insights on American electric car maker Tesla during an appearance at the Die Welt podcast. The VW boss was candid, stating that Tesla is a pioneer in the electric vehicle market, and it is one that drives Volkswagen in several areas. Despite this, the CEO noted that VW has a thing or two that can be used to catch up to the Silicon Valley-based company.
Tesla had a rough first quarter, driven largely by difficulties in delivering the Model 3 to Europe and Canada. These difficulties, together with several one-time losses, resulted in Tesla posting a $702 million loss for Q1 2019. During the earnings call for the first quarter, Elon Musk admitted that there was some merit in raising capital for the company, and earlier this month, Tesla did just that. Tesla ultimately raised $2.7 billion from its funding round, with CEO Elon Musk purchasing $25 million worth of shares from the offering.
Amidst these headwinds for Tesla, VW CEO Herbert Diess noted that he hopes the American carmaker will survive. “I hope that Tesla survives because it is, of course, an incentive and an impulse for us,” he said. He later added that while Tesla has established a lead in the electric vehicle market, this headstart was “certainly not unassailable.” Diess explained that as a “small, focused company,” Tesla has certain advantages, particularly when it comes to its battery and its autonomous driving technologies.
Nevertheless, Diess stated that Volkswagen has several strengths of its own that can be utilized to compete against Tesla. These strengths, according to the CEO, will allow Volkswagen to potentially overcome the younger American company and become the leader in electric vehicles. “We are big, we are global, and we also have advantages in scaling, starting up factories, and rolling out the business. This will be our chance in the next few years. We will win,” Diess said.
The CEO later admitted that Volkswagen is aiming to achieve the Paris climate goals by 2050. Diess also added that he personally does not see an alternative to electrification in the next ten years. Speaking about fuel cell vehicles, Diess argued that it would take “two to three times as many windmills and solar modules” to make the technology work.
Volkswagen has shown a notable amount of interest in Tesla in the past. Back when Elon Musk was attempting to take Tesla private, Volkswagen AG was among the companies willing to help raise $30 billion for the privatization deal. Earlier this year, Volkswagen also recognized the Tesla Model 3 at the National Automobile Dealers Association in the US. During the event, Scott Keogh, the chief executive officer of Volkswagen AG’s US unit, argued that Tesla all but proved that electric vehicles are here to stay. “We have not seen in the history of the auto business, a company going from zero to fourth place in luxury in a matter of a few years,” the exec said, referencing Tesla’s rapid rise among automakers over the years.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
