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Tesla ally Herbert Diess shows why Volkswagen’s EVs are better than its own gas cars

Credit: Herbert Diess/LinkedIn

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It appears that Herbert Diess, the Chairman of the Board of Management of the Volkswagen Group, is definitely standing firm on his idea that electric vehicles are the future. Diess recently reiterated this point in a post on LinkedIn, which emphasized how much savings customers would see if they chose to drive an electric car instead of a gas or diesel-powered equivalent. 

What was quite interesting was that unlike other executives from companies such as Ford, some of whom are all too willing to throw shade at pure EV makers like Tesla, Diess highlighted his point by showing how Volkswagen’s electric vehicles are better than the company’s own ICE cars. The executive’s point was clear: shifting to EVs would save customers money, and Volkswagen’s electric cars are better than the company’s tried-and-tested ICE lineup. 

“Driving a combustion engine car costs up to 50% more compared to an e-car. The Autozeitung does the math, taking into account all the costs: Driving a VW Tiguan costs around 30% more per kilometer than an ID.4. One kilometer in an Audi Q5 costs around 40% more compared to a Q4 e-tron. And driving a Skoda Kodiaq is around 50% more expensive per kilometer compared to an Enyaq. It’s time to switch!” Diess wrote. 

It’s difficult not to be impressed by Herbert Diess’ consistency, especially when it comes to his stance on electric vehicles. Diess is a longtime EV proponent, and he is largely responsible for Volkswagen’s aggressive push into sustainable transportation. The executive is also known for his evident friendship with Tesla CEO Elon Musk, who he recently invited to speak at a VW executive conference. 

During the conference, Diess made it a point to highlight that Volkswagen’s competitor, Tesla, is handling the chip and supply shortage by developing its own software in-house. This, as well as Tesla’s efficiency and speed, was among the reasons why Diess called for Volkswagen to transform its Wolfsburg site into a facility that could carry the German automaker into the future. 

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“As a surprise guest, Elon Musk joined us for a video talk in the evening. Happy to hear that even our strongest competitor thinks that we will succeed the transition if we drive the transformation with full power. One example for the speed of Tesla: They handle the chip shortage very well – the reason: they are developing their own software. Within just 2-3 weeks they had a new software which allows to use different chips. Impressive,” Diess wrote. 

Volkswagen still has a long way to go before it becomes an undeniable force to be reckoned with in the electric vehicle sector. However, the company is on the right track. Very few executives are adopting a stance similar to Diess, after all, especially with regards to his willingness to emulate a much younger company that has all but dragged the auto sector into the EV transition. In the meantime, Volkswagen’s electric vehicle lineup continues to grow, with successful EVs like the Porsche Taycan and the ID.4 finding a home among car buyers worldwide. 

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up. 

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 rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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