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VW ID.3 software failures have cost Tesla and Elon Musk a key ally in the EV transition

(Credit: Volkswagen)

Published

6 years ago

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The automotive sector’s transition to electric mobility is undeniable at this point, but the pace of the transition itself depends largely on the number of automakers that dedicate themselves seriously to EVs. While Tesla is at the forefront of this change with the Model S,3,X, and Y, the company needs all the help it can get from veteran automakers to foster the adoption of sustainable transportation as quickly as possible. 

For some time now, one of Tesla and CEO Elon Musk’s key ally in the emerging electric vehicle sector is Herbert Diess, a huge proponent of EVs. Musk and Diess have expressed their support for each other openly, both on Twitter and in previous interviews. This was particularly evident during the 2019 Golden Steering Wheel Awards in Berlin, when both executives traded compliments as they showed their optimism about the electric vehicle sector. 

Unfortunately, circumstances surrounding the Volkswagen ID.3, the first of the German automaker’s flagship line of all-electric vehicles, may have resulted in Diess being stripped of his role as the chairman of the Volkswagen brand. According to a Wall Street Journal report, part of the reason behind Diess’ removal had to do with the ID.3’s delays, particularly regarding the vehicles’ in-car software. 

Tesla CEO Elon Musk and Volkswagen CEO Herbert Diess exchange compliments at an award ceremony. (Credit: YouTube/AUTO BILD)

The Volkswagen ID.3 was poised to be the German automaker’s answer to the Tesla Model 3, a vehicle that may even be considered as the second coming of the ubiquitous Beetle. The vehicle has been in the works for years now, and much progress has been made towards its release. The ID.3 actually entered production, but there was one glaring issue — its software had numerous issues, preventing the car from bring cleared for deliveries. 

These software issues were severe, with previous reports pointing to dozens of bugs being posted by test drivers practically every day. Reports also pointed to release dates for the vehicle being pushed back, and in the Wall Street Journal’s recent report, the publication noted that the ID.3 had actually been delayed a second time. Some versions of the car are reportedly poised to be delivered this September, but cloud-connected units are not due to come out until the end of this year. 

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Cloud connectivity is a key aspect of the Volkswagen ID.3, as it would allow the German automaker to provide a user experience not unlike the one offered by Tesla and its constant over-the-air software updates. Reports have indicated that Volkswagen’s software engineers have not been able to accomplish this, despite the company’s cloud-based applications being developed with Microsoft. 

A report from Germany’s Auto Motor und Sport has noted that Diess’ replacement would likely be Oliver Blume, who is Porsche’s CEO. Blume, while not openly friendly to Tesla and Elon Musk as Diess, has something tangible under his belt: the Taycan, an all-electric car that is actually being delivered to customers today. But it should be noted that the Taycan is more of a true driver’s car that just happens to be electric, instead of a Model 3 rival that is reasonably priced and bleeding with tech. 

Hopefully, the loss of Diess at Volkswagen’s helm will not become a roadblock to the established automaker’s transition to electric cars. The era of electric vehicles seems to be at hand, after all, with the emergence of technologies such as a million-mile battery and vehicles that near price parity with internal combustion cars. 

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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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Investor's Corner

Lucid denies rumors of bankruptcy after over 40% stock drop

Published

4 hours ago

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July 14, 2026

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Credit: Lucid

Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.

Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.

The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”

Twork said:

Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.

Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.

Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.

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Tesla owner attempts resale of Model S Signature Edition for over $260k

Published

8 hours ago

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July 14, 2026

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Credit: Tesla

A Tesla owner who purchased a Model S Signature Edition, one of the final 250 units of the all-electric flagship vehicle that the company discontinued earlier this year, is attempting to sell the car despite a no-resale clause that prohibits reselling for the first year.

The car is being sold by J&S Autohaus in Ewing, New Jersey, and is priced at $260,490, well above the $159,420 that Tesla sold it for earlier this year.

To those who do not know, the Model S Signature was a highly exclusive, limited-run farewell variant of the Model S Plaid that was produced this year to mark the end of production of both the Model S and Model X, Tesla’s two flagship vehicles.

Limited to just 250 units with invite-only sales, it serves as a collector’s item celebrating the legacy of the Model S, which helped pioneer Tesla’s electric vehicle success since its 2012 launch.

It bundles top-tier performance with bespoke cosmetic and luxury upgrades, plus Tesla’s Luxe Package. Here’s what the Model S Signature has over the typical Model S Plaid:

  • Exclusive Exterior – Unique Garnet Red Paint, matching door handles, gold Tesla “T” badges upfront, gold Plaid and Signature badging at the rear.
  • Premium Interior – White Alcantara upholstery with gold piping/accents, gold Plaid seat badges, Signature-marked door sills, individually numbered dashboard plaque, gold puddle lights, special interior lighting sequence, and a custom Signature key fob.
  • Performance Upgrades – Carbon-ceramic brakes with gold calipers
  • Bundled Luxe Package – Full Self-Driving (Supervised), four years of Premium Connectivity, free lifetime Supercharging
  • Performance Metrics – ~1,020 horsepower, sub-2-second 0-60 MPH, ~390-mile range

Tesla quickly introduced a No Resale Agreement for the Signature Editions of the Model S and Model X, which would penalize the seller for “the amount of $50,000 or the value received as consideration for the sale or transfer, whichever is greater.”

The company continues:

“If you sell or otherwise transfer the ownership of your Model S or Model X, the remainder of the Recommended Maintenance, Wheel and Tire Protection Plan, and Windshield Protection Plan will transfer automatically to the buyer. The Full Self-Driving (Supervised), Free Supercharging and Premium Connectivity will not transfer with the vehicle and will terminate once the ownership of the Model S or Model X is transferred.”

Tesla will likely come after the seller, especially as it has been about two months since Tesla launched deliveries.

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Tesla Full Self-Driving v14.3.5 Early Impressions: new features and early performance

Published

11 hours ago

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July 14, 2026

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Credit: TESLARATI

Tesla rolled out Full Self-Driving (Supervised) v14.3.5 yesterday, and about fifty miles of driving on the new version has given me enough time to highlight what seems to be strong about the release and what is not.

Additionally, Tesla has added a few new features with this specific update, which we’ll highlight as well.

Tesla Full Self-Driving v14.3.5 Performance

The new update is business as usual. Things seem to be running completely normal and necessary, but there are a few things that we’ve seemed to pick up on based on our own experience with v14.3.5, as well as what other users are seeing.

Initially, it seems to be more aware of its surroundings, making moves that are incredibly courteous to other drives and operating just a tad more reserved than what the suite might have done previously.

We had two instances where it showed this, the first being FSD needing to pass a Flagger Force vehicle that was placing down signage for the day. Their work truck was right at the front corner of a right-hand turn; typically where most cars travel when they take that turn.

FSD v14.3.5 recognized this, slowed down, and took the turn wide with no issues:

Additionally, v14.3.5 backed up for a semi truck that was making a wide turn onto a road my car was on. This is not new, but it seemed to be backing up for courtesy; it didn’t seem completely necessary, but it might have put some peace of mind in the truck driver’s head:

X user Mike P, also a Pennsylvania native like myself, shared three clips of his Tesla running v14.3.5 performing similar maneuvers. He said:

“FSD turns right into a small alley that only fits one car at a time, sees oncoming car, reverses out of alley to make space, realizes oncoming car is actually parking, re-enters alley.”
Check it out here:

It seems like Speed Profiles are still in need of some tweaking; I am adjusting what Speed Profile I’m in frequently, constantly changing it to get it to travel at the correct speed. This was an issue for me on v14.3.4. It seems like they’re just a little inconsistent.

Terrible Parking

Parking attempts on v14.3.5 were not good. There are quite a few people who have said this:

David Moss, the Tesla owner who has taken multiple coast-to-coast drives without any interventions, also has had some issues with parking early on with v14.3.5:

New Features

Tesla has added the ability to open Camera Preview at any time. Previously, it was only available in Park. Here’s what that feature looks like in action:

Check back later this week for a longer review of what we’ve noticed on Full Self-Driving v14.3.5.

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