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Tesla-obsessed German automakers look to solve multi-year tech deficit

Credit: YouTube | The Kilowatts

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Tesla’s electric vehicle technology is head and shoulders above the rest of the industry. Now, German car companies who are chasing after them are trying to figure out how the multi-year lead Tesla maintains over other automotive companies can be reduced. CEOs are becoming more vocal about the Elon Musk-headed company’s dominance in the electric vehicle sector.

Perhaps the most prominent relationship between Tesla and a German car company lies within Volkswagen’s executives. VW chairman Herbert Diess is an outspoken fan of Elon Musk and has admired the work the South African Tesla frontman has done to combat the spread of dangerous greenhouse gases.

Despite the respect that Volkswagen has for Tesla and Musk, the German car company has admitted that they trail by at ten years. However, Volkswagen executives believe they can catch up.

“Tesla is an impressive manufacturer,” Volkswagen’s electromobility board member Thomas Ulbrich said. “It is a motivator for us. Tesla has ten years more experience. But we are very quick in catching up.”

Volkswagen has combated software woes throughout the development of its ID.3 electric car. These delays have inevitably slowed down Volkswagen’s chase after Tesla, but the company continues to transition some of its German production plants toward electric vehicle manufacturing.

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The Volkswagen ID.3. (Credit: Volkswagen)

Audi is another German car company that has looked at Tesla as the leader in EV development. This company has focused on its e-Tron EV as its transitionary vehicle. Still, its CEO, Markus Duesmann, has stated that improving combustion engine vehicles will be the main focus moving forward. Electrification can come later.

Duesmann does believe the gas-powered engines that Audi manufactures can be improved and become more sustainable. “They have to be great,” he said. But ultimately, reducing emissions and increasing sustainability and eco-friendly transportation starts with ditching fossil fuels in general.

Duesmann also recently admitted that Tesla has a two year lead in critical areas of the industry, and said that the electric automaker is not ahead in terms of lithium-ion battery technology.

Nevertheless, Tesla’s fleet of EVs continues to improve, while Audi’s focus relies on extending the development of gas and diesel-powered machines.

Finally, BMW is ready to battle Tesla with its rendition, an all-electric 5-series sedan. The company plans to have around five million fully-electric vehicles on the road by 2030, which would mean half a million EVs sold per year.

BMW wants to take a chunk out of Tesla’s market, just like the other two automakers. But BMW’s 5-Series is one of its most popular cars. It sold 350,000 units in 2019, according to Barron’s, and the company believes it could be the key to catching up to Tesla within the next few years.

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Tesla has a future in Germany that could end up being bad news for the domestic automakers who continue to set up shop in the European country. With Giga Berlin set to begin producing 500,000 vehicles annually starting July 2021, Tesla could dominate the German market for years to come. Especially considering Tesla’s intentions to manufacture a “completely new battery” at the German plant, automakers in the country must remain on notice.

Tesla Gigafactory Berlin render (Credit: Tesla)

Giga Berlin has been one of Elon Musk’s main points of focus since announcing the company’s plans to open a facility in November. The announcement and subsequent developments of the Berlin facility may have surged the German car giants to begin paying a little more attention to the next phase of the business.

All indications point toward sustainable and eco-friendly cars being the focus of consumers for years to come. Adapting to and developing these cars takes plenty of time, and while German companies are getting started, the saying “better late than never” comes to mind.

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 called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

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Credit: Tesla

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.

Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.

Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.

However, it is worth mentioning that Tesla is not traded like a typical company, either.

Here’s what Sonnenfeld said regarding Tesla:

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“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:

“I think from a trading perspective, it looks very interesting.”

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Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.

Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.

Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.

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Tesla makes big change to Full Self-Driving doghouse that drivers will like

Now, it is changing the timeframe of which strikes will be removed, cutting it in half. The strikes will be removed every 3.5 days, as long as no strikes are received during the time period.

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Tesla's Cabin-facing camera is used to monitor driver attentiveness. (Credit: Andy Slye/YouTube)

Tesla is making a big change to its Full Self-Driving doghouse that drivers will like.

The doghouse is a hypothetical term used to describe the penalty period that Tesla applies to drivers who receive too many infractions related to distracted driving.

Previously, Tesla implemented a seven-day ban on the use of Full Self-Driving for those who received five strikes in a vehicle equipped with a cabin camera and three strikes for those without a cabin camera.

It also forgave one strike per week of Full Self-Driving use, provided the driver did not receive any additional strikes during the seven-day period.

Now, it is changing the timeframe of which strikes will be removed, cutting it in half. The strikes will be removed every 3.5 days, as long as no strikes are received during the time period.

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The change was found by Not a Tesla App, which noticed the adjustment in the Owner’s Manual for the 2025.32 Software Update.

The system undoubtedly helps improve safety as it helps keep drivers honest. However, there are definitely workarounds, which people are using and promoting for monetary gain, and you can find them on basically any online marketplace, including TikTok shop and Amazon:

People are marketing the product as an FSD cheat device, which the cabin-facing camera will not be able to detect, allowing you to watch something on a phone or look through the windshield at the road.

The safeguards implemented by Tesla are designed to protect drivers from distractions and also protect the company itself from liability. People are still using Full Self-Driving as if it were a fully autonomous product, and it is not.

Tesla even says that the driver must pay attention and be ready to take over in any scenario:

“Yes. Autopilot is a driver assistance system that is intended to be used only with a fully attentive driver. It does not turn a Tesla into a fully autonomous vehicle.

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Before enabling Autopilot, you must agree to “keep your hands on the steering wheel at all times” and to always “maintain control and responsibility for your vehicle.” Once engaged, Autopilot will also deliver an escalating series of visual and audio warnings, reminding you to place your hands on the wheel if insufficient torque is applied or your vehicle otherwise detects you may not be attentive enough to the road ahead. If you repeatedly ignore these warnings, you will be locked out from using Autopilot during that trip.

You can override any of Autopilot’s features at any time by steering or applying the accelerator at any time.”

It is good that Tesla is rewarding those who learn from their mistakes with this shorter timeframe to lose the strikes. It won’t be needed forever, though, as eventually, the company will solve autonomy. The question is: when?

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Elon Musk teases the capabilities of the Tesla Roadster once again

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Elon Musk has once again teased the capabilities of the Tesla Roadster, fueling the anticipation that many have for the vehicle, despite it still having no public production or delivery date.

The Roadster is among the most anticipated vehicles in the automotive sector currently, and as Tesla has teased its capabilities, from a lightning-fast 1.1-second 0-60 MPH acceleration to potential hovering with cold-gas thrusters, people are eager to see it.

Although the design seemed to be finalized, there was still more work to be done. Earlier this year, as Tesla was showcasing some of the Roadster’s capabilities to Musk, he stated that it was capable of even more.

This pushed back its production date even further, much to the chagrin of those who have been waiting years for it.

Musk continues to tease us all, and as we sit here waiting hopelessly for it to be revealed, he said today that it is “something special beyond a car.”

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Musk’s words were in response to a video posted by Tesla China, showing the Roadster in a new promotional video created by a fan.

The Roadster was planned to be released in 2020, but here we are in 2025, and there is still no sign of the vehicle entering production. However, Tesla did say earlier this year that it would host a demo event for the Roadster, where the company would showcase its capabilities.

Lars Moravy said earlier this year:

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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

Tesla exec gives big update on Roadster, confirming recent rumor

The delays have been attributed to “radically increased design goals” for the vehicle, which have, without a doubt, improved its capabilities, but at the same time, we just want to know if it’s ever going to come.

Tesla can always make it “better,” but at what point do you say, “Okay, it’s time to show this thing off.” They could always build another, even more capable supercar in the next ten years.

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