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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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Elon Musk handed Grok something no other AI company can get their hands on

Elon Musk says SpaceX will feed engineering data into Grok’s next model, avoiding restricted material.

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Artistic concept rendering of SpaceX data being incorporated into a Grok AI model

Elon Musk said Tuesday that SpaceX will feed its internal engineering data into the next major training run for Grok, the AI model now folded into SpaceX following February’s merger. In a post on X, Musk wrote that SpaceX’s “massive corpus of world-class engineering data,” excluding anything restricted under U.S. arms export law, will be added during supplemental training of what he called the “2T run,” a reference to a roughly two trillion parameter model that would nearly double the parameters behind the latest Grok 4.5 that’s rolling out.

The excluded material that Musk is referring to would fall under the International Traffic in Arms Regulations (ITAR), which restricts export of technical data tied to defense and space hardware. That likely rules out propulsion specifics for Merlin and Raptor engines along with guidance and control details for SpaceX’s launch vehicles, but leaves manufacturing knowledge, materials science, and Starlink hardware design on the table.

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The announcement extends a pattern that has been building since SpaceX’s Nasdaq debut in June, when the company went public with Grok and xAI’s Colossus supercomputer folded into the pitch to investors.

Days after that listing, SpaceX closed its $60 billion all stock acquisition of coding startup Cursor, giving xAI both enterprise software distribution and a stream of real world developer data to train on. Grok 4.5 launched July 8 running partly on that Cursor training data, with Musk describing it as roughly comparable to Anthropic’s Opus 4.7 but faster and cheaper to run.

Feeding SpaceX’s own engineering data into the next AI model follows the same logic Musk has applied across xAI’s sister companies. Tesla supplies real world driving data and manufacturing expertise, X supplies conversational data, and now SpaceX supplies aerospace engineering data built up since 2002.

Musk did not give a release date for the upcoming AI model, referred to elsewhere as Grok 4.6. He has said the two trillion parameter run is in its final training phase and expected to wrap this week.

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Tesla expands ridesharing service in California to new hotspot

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Credit: Tesla

Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.

The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.

Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.

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The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.

UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch

This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.

The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.

Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.

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The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.

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Tesla reveals 2026 Summer Update with crazy fixes to Nav and more

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Credit: Tesla

Tesla has officially revealed its 2026 Summer Update, which comes with a variety of crazy new features, including Navigation fixes that owners have been wanting for months.

Tesla routinely releases a larger update with the Spring, Summer, Fall, and Winter updates, where it ships a variety of new features, bug fixes, and other additions to customer cars.

The 2026 Spring Update featured things like “Hey Grok” voice assistance, a redesigned self-driving app, Unreal Engine visual upgrades, and more.

Tesla’s Summer Release has about ten new features; we’ll show you each and detail them below:

New Grok Voice Commands

“Grok can now make phone calls, search and play music, adjust climate, open the glovebox, and answer questions about your Tesla.”

Self-Driving Stats in Mobile App

“View and share self-driving stats from the mobile app.”

Caraoke With Scoring

“Caraoke now scores your singing while in Park. High scores are saved to your Tesla profile.”

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Automatic Navigation

“Automatic Navigation now adapts to your routine.

In addition to Home, Work, and upcoming calendar events, your vehicle can now suggest and route to places you visit regularly – like a school drop-off on the way to work, or the gym on the way home.”

Preferred Routes

“For a more personalized experience, navigation now prioritizes routes that you’ve taken before”

Set Arrival Energy from Mobile App

“Set your desired Arrival Energy from your phone.”

Send Custom Wraps from Mobile App

“Skip the USB drive and upload a custom wrap of your car from the mobile app. Instructions for creating a custom wrap here: https://github.com/teslamotors/custom-wraps.”

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Rear Display Lock

“Kids can watch content on the rear screen, but only the front row can control it through the rear screen app.”

Other Improvements

  • Find Superchargers by name when searching for a destination
  • Add Apple Music songs to queue from search and artist page
  • Set your preferred zoom level for the Self-Driving visualization
  • Intro animations for new Model 3 and Y
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