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VW ID.3 software failures have cost Tesla and Elon Musk a key ally in the EV transition
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.
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.
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.
Tesla Cybercab is using a unique strategy for picking up the correct rider, which is a crucial part of ride-hailing to ensure people end up in the right place and are charged the correct price.
Cybercab will utilize an RGB strip in its front light bar that will illuminate in a variety of different colors to mark itself.
This identifying mark will also appear in the Robotaxi app, giving riders in the same location a notable distinction in an effort to avoid any confusion regarding who should get in each vehicle.
🚨 Tesla is using different light bar colors to help riders understand which vehicle is theirs
Pretty cool strategy pic.twitter.com/eGMpEMeRpc
— TESLARATI (@Teslarati) August 27, 2026
Other ride-hailing services use similar strategies: Lyft and Uber rides are recognizable through driver identity, vehicle type and color, as well as license plate. Waymo will display the rider’s initials on top of the vehicle, letting them know that the specific vehicle for them has arrived.
Tesla’s strategy is unique and interesting, but there are some flaws. Cybercab’s main purpose is aimed toward being an autonomous ride for all, including those who have disabilities like being blind or even color blind.
Tesla will likely have something in the pipeline for those who cannot see colors or have limited vision. There will definitely be multiple ways to identify which vehicle is the one that “you” specifically ordered.
Cybercab is set to start giving public rides next Thursday, September 3, in Austin, as it announced a dedicated event last week and invited many members of the Tesla community.
Additionally, members of the public will be invited as well. Tesla has been offering employee rides in Cybercab for nearly two months.
Tesla has said goodbye to one customization option for its vehicles: the wrap service it launched several years ago.
After launching an in-house wrap service in August 2020 for the first time in China. In the U.S., it launched in October 2023. Tesla continued to expand the program and adjust it with better pricing and fewer options for the Cybertruck.
By December 2023, it was giving owners of the Model 3, Model Y, and the Cybertruck the opportunity to give their vehicle a fresh look with a vinyl wrap.
Tesla revamps in-house vinyl wrap service with better pricing
It was only available in five locations: Costa Mesa, Oceanside, Santa Clara, West Covina, all in California, and Seattle, Washington.
However, Tesla made some big adjustments to its shop, and the wrap service is officially gone:
Tesla has made a LOT of changes to its online shop recently — price increases, price cuts, new options, and several products being removed entirely.
Some of the biggest increases are wheel covers. 👀
📈 PRICE INCREASES
• 2017-2023 | Model 3 Aero Wheel Cover — Style: Refresh…— Phoenix Self-Driving 🐦🔥 (@PhoenixFSD) August 25, 2026
Wraps are very popular across the Tesla lineup, especially since the company offers relatively few colors. Many choose to wrap their Teslas with interesting colors, patterns, or even finishes, turning their cars from glossy to satin or matte.
However, Tesla’s wrap service was so limited geographically that it never really had a chance to get off the ground or compete with local shops. Every area in the United States is now overflowing with detailing shops, mobile detailers, and other automotive specialists, many of whom perform wrap services.
Tesla’s service was confined to the Pacific time zone and only spanned across two states. It was never going to be something Tesla was a major competitor in, nor was it going to disrupt the wrapping industry. Now that the program has ended, it seems pretty ideal to believe it was always going to be a short-term thing.
Along with the wrap service, Tesla removed several other products, but nothing too crazy. The Model 3 Door Pocket and Cupholder Liners, the Model S 19″ Magnetite Wheel and Winter Tire Package, Model X/Y Ski/Snowboard Carrier for Hitch Rack, Tesla’s Electric Summer Party Tee, and the Electric Summer Tee were the other items the company totally eliminated from its online shop.
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Tesla Robotaxi fleet gets a brain upgrade ahead of Cybercab launch event
Tesla’s Robotaxi service now runs longer hours nationwide as its unsupervised fleet quietly grows larger.
Tesla’s Robotaxi service just got easier to catch, with the company’s official Robotaxi account noting that rides are now available from 6 a.m. to 10 p.m., seven days a week, across its operating footprint. The account also said its unsupervised fleet is “a lot bigger” than before, though without specifics. The bigger change is what Tesla says upgraded intelligence in vehicle distribution and routing is what’s actually cutting wait times, not a new Full Self-Driving version.
While Tesla did not name the team behind the upgrade, the language points to its AI and fleet software group rather than the driving stack itself. Vehicle distribution and routing in Robotaxi has functioned mostly as a dispatch problem with the software deciding which idle car goes to which rider, and how far it has to travel to get there. “Upgraded intelligence” suggests a smarter version of that dispatch logic, likely using demand forecasting to position idle cars near where riders are about to request them rather than reacting once a request comes in. Tesla’s AI division has built similar prediction systems for other parts of the business, including the neural networks that power FSD itself, so applying that same approach to fleet logistics would be a natural extension rather than a new discipline for the team.
Robotaxi now runs 6am to 10pm, 7 days/week
Unsupervised fleet is a lot bigger
Also, upgraded intelligence in vehicle distribution & routing means you wait less pic.twitter.com/UFZ4bqg2dZ
— Tesla Robotaxi (@robotaxi) August 26, 2026
Tesla is also about a week away from a separate robotaxi milestone. The company plans to launch Cybercab, its purpose built two seat robotaxi with no steering wheel or pedals, in Austin on September 3. Cybercab has been giving employees rides on public and private roads for weeks, and the September event is expected to fold those vehicles into the existing Robotaxi fleet within days of the launch.
Thank you so much @Tesla for inviting us to the Cybercab launch in Austin! 🤠 pic.twitter.com/F1rAR8zd5O
— TESLARATI (@Teslarati) August 22, 2026
Austin previously ran Robotaxi from 6 a.m. to 2 a.m. as of last September, a schedule set before the service expanded into Dallas, Houston, Miami, Tampa, Orlando and the Bay Area. Wednesday’s post did not specify whether that extended overnight window still applies in Austin specifically or whether 6 a.m. to 10 p.m. is now the standard across every market. Tesla’s post, visible on its official Robotaxi account, framed the change simply as fewer riders waiting around for a car.
Whether the wider hours hold once Cybercab enters the fleet next week is the next thing worth watching. Tesla has tended to expand Robotaxi in increments, first geofence, then hours, then fleet size, and each step so far has arrived without much advance notice.
Tesla Cybercab uses a unique strategy for picking up the right rider
Tesla ends in-house wrap service that always seemed like a short-term program
