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Tesla forces Volkswagen CEO to act fast and avoid similar fate as Nokia
Will automotive giant Volkswagen have the same fate as Finnish cellphone manufacturer Nokia? VW CEO Herbert Diess says that the carmaker is heading that way if it doesn’t do anything soon and quickly.
Even for a tried and tested automotive brand such as Volkswagen, things can be overwhelming. Frightening, in fact, if its chief executive compares it to a once-dominant phone brand that was not able to keep up with the times.
Germany who wants to switch to greener vehicles and lower its emissions footprint implemented tighter rules following Volkswagen’s admission in 2015 that it cheated with emission tests. The “Dieselgate” problem though is just the tip of the iceberg. The carmaker has no choice but to comply with the stringent guidelines and needs to develop electric vehicles and this requires the company to revamp its assets, cut costs, and catch up with needed technologies.
“The big question is: Are we fast enough? If we continue at our current speed, it is going to be very tough. In summary, this is probably the most difficult challenge Volkswagen has ever faced,” Deiss told his senior managers during a global board meeting as reported by Reuters.
Last September, the environment committee of the European parliament pushed to cut carbon dioxide emissions by 45 percent from 2021 through 2030 and to have 20 percent quota of electric vehicles come 2025 and by 50 percent in 2030. If Volkswagen misses these quotas in 2021, PA Consulting firm estimates that Volkswagen might face a fine of as much as 4.5 billion euros.
Just like what Diess emphasized, it is not an easy task and the brand needs to improve its productivity and lower its costs. It’s a massive overhaul that will push the German carmaker to refocus so they can produce EVs and batteries to comply with set emission rules and while keeping profit margins.
Analysts from consulting firm Wood Mackenzie predicts that Volkswagen could be the biggest EV manufacturer by 2030, producing 14 to 16 million green cars. However, this will be a long shot since Volkswagen would need to take a 53 percent share of the global market for electric cars from now and through the next eight years. It also needs to produce about 57 percent of battery packs for EVs.
There’s another problem for Volkswagen. One that might force them to be a Nokia — Tesla.
Tesla has been pushing the right buttons across markets. It became the most valuable car brand in the world eclipsing other American automotive predecessors and has been converting naysayers to believers of late.
The Silicon Valley-based electric car manufacturer has set its foot on Volkwagen’s backyard. It’s moving fast to start building its Gigafactory 4 in Brandenburg that will produce 150,000 EVs initially and will eventually ramp up to 500,000 units per year. Once Model Ys and Model 3s roll out of GF4, it will surely bite a good chunk of Volkswagens market share in Germany and the rest of the region. Tesla would have thrown a ton of punches to knockdown (or knockout) Volkswagen and other German car brands before they even know it. Elon Musk and his team already have the technologies to dominate the EV market.
Likewise, Tesla has established a strong presence in China with its Gigafactory 3 in Shanghai and the Chinese government has been pouring its support to Tesla, seeing the brand as a catalyst for the EV industry. Recently, Tesla was able to cut the price of locally-made Model 3s and the mass-produced sedan will most likely be a cash cow for Musk’s car brand. It has also pushed the gear to design Chinese-style Teslas, perhaps entry-level cars that it needs to even get a better share of the pie. And as the Tesla chief said, these cars will not be only for China but for the rest of the globe.
If Volkswagen doesn’t want to be a Nokia, it has to be smart and lightning-quick to catch and outplay Tesla in a game that the latter knows by heart. Volkswagen has no room to commit errors in the EV game. But for now, Tesla is in a very strong position and Deiss and the rest of his team can only look and scratch their heads.
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Tesla Cybercab display highlights interior wizardry in the small two-seater
Photos and videos of the production Cybercab were shared in posts on social media platform X.
The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details.
Photos and videos of the production Cybercab were shared in posts on social media platform X.
Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.
The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.
Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.
Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.
Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.
“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.
The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.
Elon Musk
Elon Musk’s xAI wins permit for power plant supporting AI data centers
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”
The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.
“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.
The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.
The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.
The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.
Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.
SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.
“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Elon Musk
Tesla China teases Optimus robot’s human-looking next-gen hands
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus.
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.
If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.
Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.
Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.
In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.
“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Elon Musk’s xAI wins permit for power plant supporting AI data centers
