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Once-hailed ‘Tesla Killer’ Audi e-tron slows down production to just 6 hrs/day: report
The Audi e-tron, once dubbed by avid Tesla critics as a potential “Tesla Killer,” is reportedly running into production problems due to a constrained supply of batteries and a slower-than-expected delivery of electric motors. These production problems have reportedly caused Audi to postpone the release of its upcoming all-electric car, the e-tron Sportback, to 2020, roughly a year later than its intended 2019 release date.
Sources familiar with the activities in Audi’s Brussels plant have told The Brussels Times that the German carmaker is currently being constrained by LG Chem, which supplies the e-tron’s batteries. LG Chem is the supplier of choice for a number of electric vehicles, such as the Porsche Taycan and the Jaguar I-PACE. The local publication’s sources claim that LG Chem is pushing up prices, resulting in Audi having to compete with rival automakers like BMW and Mercedes-Benz to acquire batteries for the e-tron.
This is but half of the e-tron plant’s current issues, according to the Times‘ sources. Audi is reportedly seeing delays in the deliveries of the e-tron’s electric motors as well. The SUV’s electric motors are delivered from an Audi plant in Györ, Hungary, whose workers participated in a strike earlier this year. As a result of these issues, the Brussels plant has reportedly shortened its operations to just 6 hours a day to match production to parts availability. The sources claimed that Audi will likely shift the plant to a 4-day work week in the near future.
It is unfortunate to see Audi encountering production issues with the e-tron, its first all-electric vehicle. Audi is one of the auto industry’s biggest names, having been founded in 1909. Despite its extensive experience in building cars, the company has proven to not be immune to the difficulties of electric car production, something that younger companies such as Tesla have been dealing with for years. Prior to the e-tron’s launch, the vehicle was hyped by Tesla critics as a potential “Tesla Killer,” citing, among other things, Audi’s experience in car manufacturing. As the company is learning now, it appears that building electric cars might not be as easy as Tesla skeptics would think.
Mass producing electric cars is something that Tesla continues to learn. After a gruelling “production hell” with the Model 3, Tesla has arguably become one of the most experienced electric car makers in the auto industry despite its young age. This has allowed the company to have enough foresight to secure the supply of batteries (at least to a large degree) for its electric vehicles, as represented by Gigafactory 1 in Nevada. The company has also opted for a notable degree of vertical integration, producing its vehicles from the ground up using hardware and software that were developed in-house.
The Audi e-tron is equipped with two electric motors that deliver a total power output of 300 kW, as well as a sizable 95 kWh battery that delivers and EPA rating of 204 miles of range on a full charge. The e-tron is no slouch as well, being capable of sprinting from 0-60 mph in 5.5 seconds in “Boost” mode. The all-electric SUV is expected to start deliveries in the United States next month, though it remains unsure if there will be delays due to the company’s reported issues in the Brussels plant.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
xAI’s Grok approved for Pentagon classified systems: report
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
