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

(Credit: Volkswagen)

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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. 

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. 

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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. 

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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Tesla exec hints at a wild fix for Robotaxi’s biggest weather problem

Tesla VP Lars Moravy says focused lasers could keep robotaxi cameras clear instead of wipers.

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Tesla Cybercab in a rainy Austin, Texas rendering

Tesla may one day use lasers instead of wiper blades to keep its robotaxi cameras clear. Lars Moravy, Tesla’s Vice President of Vehicle Engineering, floated the idea in a new episode of Jay Leno’s Garage released Monday, where he and design chief Franz von Holzhausen walked Leno through the Model Y L.

“If you fire them in a focused area, you can clean the sheet of water and create a barrier,” Moravy said. “When you think about autonomy, it might be a good solution to only clean the area where the camera is.” He added that clearing an entire windshield would take too many lasers to be practical.

The comment brings back one of Tesla’s stranger patents. The company filed for “Pulsed Laser Cleaning of Debris Accumulated on Glass Articles in Vehicles and Photovoltaic Assemblies” in May 2019, and the U.S. Patent Office granted it in September 2021. An updated divisional version was granted on March 31, 2026. The system detects debris on the glass, identifies what it is, and pulses the laser at a calibrated rate so the beam never penetrates deeper than the glass itself. The filing names windshields, side windows, camera lenses and solar panels as possible targets.

Lasers were once rumored for the Cybertruck, which appeared at its November 2019 unveiling with no wipers at all. Tesla eventually settled on a single oversized blade, and Elon Musk admitted the wiper was the part of the truck that troubled him the most. That production line is now scheduled to shut down around mid 2027 to make room for more Cybercab output.

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What has changed since then is who is in the vehicle. A privately owned car has a driver who can notice a smeared windshield and do something about it. A Cybercab heading to its next pickup has nobody on board to check. Tesla has been chipping away at that problem with conventional hardware. Model Y Robotaxis in Austin were spotted with washers on their side repeater cameras in January, and a lens cleaning patent granted in May describes a fluid and wiper assembly for vehicle cameras and Optimus’ eyes. A laser would remove the fluid and the blades, both of which need regular replacement across a fleet.

The same episode gave Leno his first ride on Full Self-Driving (Supervised). The Model Y L pulled over on its own when an ambulance approached with its sirens on. “We got it on self-driving mode! I’m not touching anything,” Leno said. Moravy and von Holzhausen also explained that owners remain responsible while using FSD (Supervised), while Tesla takes responsibility for Robotaxi rides because it acts as the operator. Tesla launched the Model Y L in the U.S. in July at $61,990.

Moravy gave no timeline, and he described the laser setup as something Tesla is considering rather than a confirmed feature. The fleet it would serve keeps getting bigger, though. Tesla launched unsupervised Robotaxi service in San Antonio on Monday, its eighth city, and expanded its Austin service area to roughly 443 square miles on the same day. Several of those markets, including Houston, Miami and Tampa, see heavy seasonal rain.

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Tesla Robotaxi enters its newest city, reaching San Antonio

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Credit: @AdanGuajardo/X

Tesla launched unsupervised Robotaxi service in San Antonio, Texas, on November 9, 2026, with the first rides beginning at 5 a.m. local time.

The company’s official Robotaxi account on X posted the announcement just after midnight, sharing a map that outlines a large operational zone covering much of the city. The geofence is roughly 274 to 275 square miles, making it Tesla’s largest day-one Robotaxi service area to date.

The zone centers on downtown, covers nearly everything inside Loop 410, and extends north to Loop 1604 between Interstate 10 and U.S. 281, with further reach west past State Highway 151, east beyond I-35, and south toward I-37. This area encompasses about one million residents and hundreds of thousands of jobs.

San Antonio International Airport lies inside the geofence, though Tesla is not currently offering airport pickups or drop-offs. This hopefully will happen soon, as ride-sharing to and from the airport can be expensive.

The launch makes San Antonio Tesla’s eighth unsupervised Robotaxi city and its fifth in Texas, joining Austin, Houston, Dallas, and Fort Worth. Florida markets in Miami, Orlando, and Tampa are also live.

Service uses modified Model Y vehicles operating without a safety driver in the vehicle, consistent with recent unsupervised expansions. Cybercab two-seaters remain limited primarily to Austin for now. It’s worth noting that Dept. of Transportation officials in Texas have already ok’d the Cybercab’s operation in Austin, and one official called it “a tangible example of how quickly our transportation system is evolving.”

San Antonio was previously listed among near-term targets in Tesla’s October 2026 Robotaxi safety materials, alongside Las Vegas, Phoenix, and Jacksonville. The rapid Texas rollout follows Fort Worth’s unsupervised debut on November 2 and builds on Austin’s original launch in June 2025.

The 274-square-mile debut remains substantially larger than Waymo’s local footprint and marks continued progress in Tesla’s unsupervised autonomy efforts after starting the year with no such rides. The company has stated ambitions for broader 24/7 operations by the end of 2026 as vehicle counts and software reliability improve.

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Tesla begins groundworks on $10B ‘Project Crystal Sun’ in Texas

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Elon Musk stands in profile against a clear blue sky, with a bright overhead sun shining above a vast landscape of Tesla solar panels stretching to the horizon, and a smaller Texas flag flying on a pole to his right.

Tesla has started to perform earthworks engineering on the roughly 3,000-acre site in Fort Bend County, Texas, advancing the massive $10 billion Project Crystal Sun plan to build a vertically integrated solar manufacturing complex.

Flyover drone footage from S.E. Robinson, Jr. released this morning shows the location under development. Tesla has crews on site performing large clearings, but you can also see equipment staging areas, the use of an existing homestead, and active leveling across a substantial portion of the property.

Public filings first submitted in July under Texas’s Jobs, Energy, Technology and Innovation Act describe a plant that would manufacture the full solar chain: everything from silicon ingots, wafers, coated cells, and finished modules.

Tesla projects 9,712 permanent jobs by 2033, ramping from roughly 1,900 positions in the first year of operations, plus a peak of about 1,147 construction jobs. Construction is targeted for 2026–2028, with commercial production beginning in the first quarter of 2029. An accompanying economic analysis estimates the project could add roughly $107 billion to Texas GDP over several decades.

Local incentives have cleared major hurdles. Lamar Consolidated Independent School District unanimously approved school-tax limitations in September, and Fort Bend County commissioners approved a package of abatements and related agreements in late October that could extend equipment tax breaks for as long as 35 years.

Tesla had previously indicated it was evaluating a competing out-of-state location.

The effort fits broader statements by Musk that Tesla and SpaceX are each working toward 100 gigawatts of annual U.S. solar manufacturing capacity. If built as described, Project Crystal Sun would stand as one of the largest domestic attempts to create a fully integrated solar supply chain on American soil.

While Tesla has not issued a formal groundbreaking announcement, the visible site preparation and high-profile social media activity represent a concrete step forward for a project that has moved from confidential filings to active earthworks in a matter of months.

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