News
Once-deemed ‘Tesla Killer’ Mercedes EQC production target gets halved over battery issues
The Mercedes-Benz EQC, once deemed a “Tesla Killer” by the electric car maker’s critics, recently had its production targets reduced by 50% from 60,000 to 30,000 after parent company Daimler revealed that there is a shortage in LG Chem battery cells.
Daimler’s forecast for the EQC has not matched the actual sales figures for the vehicle. The goal was to sell 25,000 EQC cars last year but Daimler only managed to build around 7,000. In Daimler and Mercedes-Benz’s home country of Germany, vehicle registrations suggest that the car only sold 55 total units as of January 3, 2020.
Works Council Chief for Daimler Michael Brecht places some of the blame on Tesla. He states the company’s purchase of battery automation specialist Grohmann Engineering in 2016 has hindered Mercedes-Benz ability to produce a sufficient number of batteries, according to Reuters.
Brecht went on to state that Tesla’s acquisition of Grohmann caused problems in the ramping up process of producing batteries at its battery production plant known as Deutsche Accumotive.
Mercedes-Benz had hired Grohmann to build batteries for the company’s planned electric fleet. After Grohmann’s founder, Klaus Grohmann and Tesla CEO Elon Musk had a disagreement on how much involvement the battery automation company would have with Mercedes Benz, Musk formally removed Grohmann from his position. The company is now known as Tesla Grohmann Automation.
The news of the EQC’s reduced target production output seems to be a crossroads for Daimler as the European Union will begin issuing fines to auto manufacturers who do not reach the CO2 requirement of 95g per kilometer by the end of this year. This is dependent on the size of each individual manufacturer’s production rate and vehicle fleet.
Daimler will need to reduce its emissions by 27.3 grams by 2021 to avoid the $1.1 billion fine, according to a forecasting group called PA Consulting.
The terms of the emissions requirement allowed for the pooling of multiple companies so larger manufacturers would have an easier time meeting the CO2 requirement. Fiat-Chrysler Automobiles struck a deal with Tesla to pool emissions figures that will require an estimated $2 billion payment to the electric car manufacturer. This amount will effectively pay for the initial construction of Tesla’s German Gigafactory 4 in Berlin.
The EQC has been anything but smooth sailing for Mercedes since its release. The vehicle has been the subject of numerous production issues and has even received a delay in its North American launch.
Elon Musk
Elon Musk estimates Tesla Semi could reach Europe next year
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.
Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.
Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.
Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.
Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.
Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.
The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets.
Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.
Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Elon Musk estimates Tesla Semi could reach Europe next year
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
