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Tesla CEO Elon Musk gives VW CEO kind words amid automaker’s massive EV push

Volkswagen dealership, Florida [Source: Boast Volkswagen]

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Tesla CEO Elon Musk gave some support to embattled Volkswagen Chief Executive Herbert Diess on Tuesday, despite the German automaker’s legal troubles relating to its high-profile Dieselgate scandal.

Despite allegations made by the EPA regarding the German automaker, Musk gave Diess his support as a response to an article written by Bloomberg‘s Chris Bryant, who said that the VW executive should win an award for “Worst Sense of Timing.” This comes just a few weeks after the Tesla CEO trolled Volkswagen for cheating on emissions testing.

“Herbert Diess is doing more than any big carmaker to go electric. The good of the world should come first. For what it’s worth, he has my support,” Musk said on Twitter.

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The scandal came to light in September 2015 when the United States EPA found that the German automaker was using “cheat devices” in its cars in order to pass emissions testing. The company had knowingly programmed its Turbocharged Direct Injection (TDI) diesel vehicles to only use emissions controls during laboratory testing, thus violating the EPA’s Clean Air Act. Volkswagen has paid close to $33 billion in penalties since the scandal began.

News regarding Musk’s support of Diess comes just a day after Teslarati reported that Volkswagen would begin the development and production of its own lithium-ion battery cells for future electric vehicles. The company has already taken steps to begin the project as they have hired some 300 additional workers for the project, and they anticipate that the initiative will create an additional 700 jobs.

The company anticipates that the new warehouse that will be located in Salzgitter, Germany will be completed in either 2023 or 2024. The 900 million euro ($991.72 million) project is a joint affair, as Volkswagen has decided to work with Swedish battery manufacturer Northvolt. Volkswagen also plans to utilize its own recycling plant in order to make its batteries even more environmentally-friendly.

(Credit: Volkswagen)

Diess left his post at fellow German automaker BMW after he was not given the CEO position and joined VW about two months prior to the Dieselgate scandal breaking. Diess is the conductor in Volkswagen’s massive $33 billion plan to begin producing electric vehicles, as he announced the company’s new battery-powered ID.3 on September 9.

Unfortunately, this campaign may come to a screeching halt as Diess, along with other VW frontmen, are currently facing stock market manipulation charges. But it remains to be seen whether or not the men will have their day in court.

While Volkswagen has been found to have purposefully and intentionally placed devices in its vehicles that have hurt the environment, Musk’s kind words toward Diess are an indication that the company is taking the necessary steps to move toward a more sustainable option of transportation. Volkswagen has put its money where its mouth is, pledging nearly a billion Euros toward producing electric vehicle batteries.

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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 dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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Elon Musk takes latest barb at Bill Gates over Tesla short position

Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now

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Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.

Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.

The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.

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Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:

Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.

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Tesla CEO Elon Musk sends final warning to Bill Gates over short position

Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”

“Gates is a huge liar,” Musk responded.

It is not known whether Gates still holds his Tesla short position.

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