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The ‘Tesla Effect’ hits Germany as VW, Daimler, and BMW fully commit to EVs

(Photo: Tesla)

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The auto industry saw something historic happen this past week in Germany. In a rare act of unity, the leaders of the country’s big three Automakers; Volkswagen CEO Herbert Diess, Daimler CEO Dieter Zetsche, and BMW CEO Harald Krüger, all agreed that the future of German auto is the electric car. Over the next decade, each CEO would be pushing their respective companies to shift and embrace the idea of an electrified fleet.

No (more) compromises

The deal did not come easy. The Volkswagen CEO caused waves among German automakers and suppliers after he called for the widespread adoption of electric cars and a mass investment in EV charging infrastructure. The VW CEO’s proposal was bold: he wanted the German auto industry to focus solely on EVs, and he warned that he would be “evaporating billions” to do so. The proposal was met with a lot of criticism, from both fellow automakers and suppliers. In response, Volkswagen threatened to leave the industry lobby group Association of the Automotive Industry (VDA) because of its refusal to commit to an electric-first strategy.

BMW CEO Harald Krüger was particularly critical of Volkswagen’s proposal, which resulted in what industry insiders described as heated talks between the two executives. Krüger’s reservations are understandable, as Volkswagen’s demands do not favor BMW. One of Diess’ requests called for free charging benefits for electric car owners whose vehicles cost less than 20,000 euros. This benefits Volkswagen, which is aiming to produce an affordable electric car, but not companies like BMW and Daimler, who, on average, make more expensive vehicles.

Volkswagen CEO Herbert Diess, Daimler CEO Dieter Zetsche, and BMW CEO Harald Krüger. (Credit: Electrive)
Volkswagen CEO Herbert Diess, Daimler CEO Dieter Zetsche, and BMW CEO Harald Krüger. (Credit: Electrive)

Despite these headwinds, a short but meaningful call last Wednesday sealed the deal for Das Auto’s electric car initiatives. Insiders from news publication Handelsblatt noted that after ten minutes, the Volkswagen, BMW, and Daimler CEOs were practically on the same page, and by the end of the 40-minute conference call, the three executives have found a middle ground. The representative of the VDA dubbed the meeting as “constructive,” and the lobby group has stated that it’s expecting the three manufacturers to work out a consensus paper in the near future.

Apart from advocating for electromobility, The companies also decided to forego commitments to other forms of alternative propulsion, such as hydrogen fuel cells. In a statement to media publication welt.de, BMW member of the board Klaus Fröhlich mentioned that a breakthrough in hydrogen fuel cell cars is unlikely within the next decade, particularly as charging infrastructure for electric vehicles is growing at a rate where long-distance travel will soon be a non-issue. “The probability of a hydrogen infrastructure developing in parallel is very low,” Fröhlich said.

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A LinkedIn post written by the Volkswagen CEO outlined his points as follows. “In order to stop global warming, there is no way around the Paris climate targets. To do this, the car must become cleaner as soon as possible and CO2-free by 2050 at the latest. E-mobility is the only technology that is feasible from today’s perspective. I am convinced that if we concentrate all our energies on the leading technology of electromobility, we will achieve both: the car will become cleaner in the short term and CO2-free in the long term. And the car country Germany will be the world leader in driving the future,” Diess wrote.

All According to the (Master) Plan

The Tesla Model S, Model X, and Model 3.

While Germany’s commitment to electromobility is undoubtedly impressive, it should be noted that the developments and milestones of the electric motor and electric car batteries over the past years are the catalysts that initiated this change. Electric mobility advocate Auke Hoekstra notes that electric motors are pretty much the only superior alternative to the internal combustion engine today, in the way that they are smaller, lighter, cheaper, practically maintenance-free, and around four times more efficient. It should also be noted that it took the efforts of a daring Silicon Valley electric car company to show the industry that electric mobility is feasible.

Elon Musk has always noted that Tesla exists to accelerate the world’s transition to sustainable energy. Back in 2006, he posted his first Master Plan, which involved the creation of electric cars that are so compelling for car buyers; the behemoth that is traditional auto will start shifting its efforts to electric mobility. Tesla’s first car, the original Roadster, was mostly a proof-of-concept in this sense, as it is a vehicle that simply proved the idea that electric cars can be just as fast, sexy, and desirable as the next Porsche or Ferrari. The Model S and Model X took the company’s mission further, proving that electric cars are not only comparable to their fossil fuel-powered counterparts; they could be far better. Loaded to the teeth with tech, the sedan and crossover (hence the Model “S” and “X” moniker) were successful, but they still only catered to the higher end of the market.

Tesla shook the auto industry with the Model 3, a vehicle that practically took the company and its CEO inches away from ruin. Elon Musk described the Model 3 ramp as one of the most painful periods of his career, and objectively speaking, he was correct. Musk bet Tesla’s entire future in the Model 3, and if it wasn’t for his own willingness to sacrifice his own comfort (Musk returned to sleeping under a table in Tesla’s Fremont factory at the height of the Model 3’s “production hell”), clever, out-of-the-box solutions from remarkable executives like current President of Automotive Jerome Guillen (who came up with the idea of creating another Model 3 assembly line inside a sprung structure), and the insane efforts of Tesla’s workers across the board, the company would have fallen. Months later, the Model 3 would become the United States’ best-selling luxury vehicle of 2018, and within the first quarter of 2019, the electric sedan would begin to take over Europe and China. At this point, it is no exaggeration to state that the Model 3, with its track-capable motors and battery, is pretty much the gold standard of electric vehicles today.

A Mission Achieved

Elon Musk and Tesla represents a fast-moving target for the auto industry.

With the behemoth that is German Auto now awakened and committing itself fully towards electric mobility, will Tesla finally be trampled under the giants’ feet? Not necessarily. Tesla still functions like a Silicon Valley startup, moving fast, making mistakes, and fixing errors on the go. The result of this work culture, coupled with extensive experience with the electric motor and batteries, is a carmaker that moves incredibly fast. Thus, by the time the German automakers come up with vehicles that can challenge the Model 3 in its current iteration in terms of tech, features, and specs, Tesla would probably have improved its vehicles further. It’s incredible to see traditional automakers finally commit to electric cars, but in terms of beating Tesla, it would suffice to say that it would be very difficult to trample a company that stubbornly refuses to stay still.

When asked by 60 Minutes host Lesley Stahl if he would be open to other carmakers beating Tesla at its own game, Elon Musk candidly stated that as long as the world’s shift to electric transportation is secured, he would be able to sleep well at night. “If somebody comes and makes a better electric car than Tesla and it’s so much better than ours that we can’t sell our cars, and we go bankrupt, I still think that’s a good thing for the world,” Musk said, to the surprise of the veteran host. This is one of the things that is fascinating about Tesla and Elon Musk. Both the company and its CEO are fighting tooth and nail every day to meet its next ridiculously difficult target; but beyond these struggles, Musk and Tesla are fully aware that the fight is much bigger than them. A future that is not dependent on fossil fuels is a far bigger cause.

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It took a while before Germany’s biggest car conglomerates saw the writing on the wall. Now that they have, it would not be surprising at all if the auto industry does start a full embrace of electric mobility. China is already waist-deep in its EV initiatives, and with Germany doing the same, it would be difficult for the internal combustion engine to remain relevant in the decades to come. One could only hope that the United States’ big three, Ford, GM, and Fiat-Chrysler, will follow. Tesla is already based in the US, and its patents are open-sourced. At this point, the writing is now in big, bold letters, and it would be foolish to insist that electric mobility is “not yet ready” or “not feasible.” As for Tesla, one can only hope that the company had learned its lessons with the Model 3 as it attempts to produce the Model Y, an even more ambitious vehicle that will compete in one of the world’s most lucrative markets.

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 makes major rebound in European market with 4x in registrations

Tesla delivered a striking performance in Germany’s automotive market in March 2026, with new vehicle registrations more than quadrupling year-over-year, according to official data from the German Federal Motor Transport Authority (KBA).

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Credit: Raffael/Twitter

Tesla headlines will have you believe the company is dead to rights in Germany, selling nearly no cars, and stating consumers are more interested in other brands not run by CEO Elon Musk.

However, the latest data from Germany proves this might be a dying narrative.

Tesla delivered a striking performance in Germany’s automotive market in March 2026, with new vehicle registrations more than quadrupling year-over-year, according to official data from the German Federal Motor Transport Authority (KBA).

Newly registered Tesla vehicles jumped 315.1 percent to 9,252 units, marking the company’s strongest March on record in the country and signaling a sharp rebound after earlier challenges in the European market.

The March surge accounted for roughly 72 percent of Tesla’s first-quarter total in Germany. Q1 registrations reached 12,829 vehicles, a 160 percent increase from the same period a year earlier. For context, the implied March 2025 figure was approximately 2,229 units—one of the brand’s weaker months in recent years.

These numbers underscore Tesla’s ability to capitalize on renewed demand in Europe’s largest car market, where the company had faced softening sales throughout much of 2025 amid heightened competition and broader economic pressures.

Germany’s overall new passenger car market also expanded in March, with 294,161 registrations—a 16 percent rise from the prior year. Battery-electric vehicles (BEVs) performed even more robustly, climbing 66.2 percent to 70,663 units and representing about 24 percent of all new car registrations.

Tesla FSD (Supervised) stuns Germany’s biggest car magazine

Tesla’s 9,252 deliveries captured approximately 13.1 percent of the BEV segment for the month and roughly 3.1 percent of the total new car market, highlighting its continued leadership among pure-play electric brands despite growing competition from both domestic German manufacturers and Chinese entrants like BYD, which saw its own registrations surge 327.1 percent to 3,438 units.

The strong showing comes as Germany’s EV incentives and infrastructure investments continue to support adoption. Tesla’s lineup, anchored by the Model Y and Model 3, appears to have resonated with buyers seeking premium electric options.

Industry observers note that the concentrated March registrations, accounting for the bulk of the quarter, may reflect strategic inventory management, competitive pricing adjustments, or pent-up demand following a slower start to 2026.

This performance provides a much-needed bright spot for Tesla in Europe, where the brand had seen market share erosion in prior periods.

Tesla Model Y outsells all EV rivals in Europe in 2025 despite headwinds

With Q1 2026 registrations up significantly, Tesla has demonstrated resilience in a market that registered 699,404 new passenger cars for the quarter, up 5.2 percent overall. As the year progresses, sustained momentum in Germany could bolster Tesla’s European outlook, particularly if broader BEV growth persists amid evolving policy support and technological advancements.

The March 2026 data from the KBA paints a picture of Tesla’s renewed strength in Germany: a fourfold monthly leap, record quarterly gains, and a solid foothold in an expanding EV segment.

Whether this marks the beginning of a sustained recovery or a seasonal peak remains to be seen, but the numbers affirm Tesla’s enduring appeal in one of the world’s most competitive automotive landscapes.

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Elon Musk reveals unfortunate truth of Tesla Full Self-Driving development

In a candid reply to a dramatic video of Tesla’s Full Self-Driving (FSD) system averting disaster, Elon Musk laid bare a harsh reality facing autonomous vehicle technology.

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Tesla’s Full Self-Driving suite is one of the most significant technological developments in terms of passenger travel in decades, but it is not all sunshine and rainbows, even with major strides in safety, CEO Elon Musk revealed.

In a candid reply to a dramatic video of Tesla’s Full Self-Driving (FSD) system averting disaster, Elon Musk laid bare a harsh reality facing autonomous vehicle technology.

The clip shows a Model 3 traveling at over 65 mph on a foggy, rain-soaked highway when a pedestrian suddenly steps into traffic.

Full Self-Driving instantly detects the threat and swerves safely, preventing what could have been a fatal collision for both the pedestrian and the driver’s cousin.

Musk’s response was unequivocal:

“Tesla self-driving saves a lot of lives – the statistics are unequivocal. That doesn’t mean it’s perfect, of course.” Even with a projected 10x safety improvement over human drivers, FSD would still prevent roughly 90% of the world’s approximately one million annual auto fatalities. The remaining 10%—roughly 100,000 deaths—would expose Tesla to relentless lawsuits. Meanwhile, the vast majority of lives saved would go unnoticed. “The 90% who are still alive mostly won’t even know that Tesla saved them. Nonetheless, it is the right thing to do.”

This “unfortunate truth,” as Musk implicitly framed it, highlights a fundamental asymmetry in how society perceives safety technology. Human drivers cause the overwhelming majority of crashes through distraction, fatigue, or error.

Yet when FSD errs, the incident becomes headline news and a courtroom target. Prevented tragedies, by contrast, leave no trace.

Survivors simply continue their journeys, unaware of the split-second intervention that kept them alive. The result is a distorted public narrative that amplifies failures while rendering successes invisible.

We have seen this through various headlines throughout the years, including the mainstream media’s obsession with only mentioning the manufacturer’s name in the instance of an accident when it is “Tesla.”

Opinion: Tesla Autopilot NHTSA investigation headlines are out of control

The video’s real-world example underscores FSD’s current capabilities. In near-zero visibility, the system’s cameras and neural network reacted faster than any human could, demonstrating the life-saving potential Musk cites.

Tesla’s latest safety data already shows FSD (Supervised) performing significantly better than the U.S. average, with crashes occurring far less frequently per mile driven.

Still, regulatory scrutiny, liability concerns, and media focus on edge-case failures continue to slow widespread adoption. Musk’s frank admission suggests Tesla is prepared to push forward despite the legal and perceptual headwinds.

As FSD edges closer to unsupervised autonomy, Musk’s post serves as both a progress report and a reality check. The technology is already saving lives today.

The unfortunate truth is that proving it and scaling it responsibly will require society to value statistical lives saved as much as dramatic stories of those lost. In the race toward safer roads, perception may prove as formidable an obstacle as the fog and rain in that viral video.

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Tesla Full Self-Driving v14.3: First Impressions

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Tesla started rolling out Full Self-Driving v14.3 to Early Access Program (EAP) members earlier today, and I had the opportunity to see some of the improvements that were made from v14.2.2.5.

While a lot of things got better, and I truly enjoyed using Full Self-Driving again after being stuck with the widely confusing and frustrating v14.2.2.5, Tesla still has one major problem on its hands, and it has to do with Navigation and Routing. I truly believe those issues will be the biggest challenges Tesla will face with autonomy: the car simply going the correct way, not conflicting with what the navigation says, and taking the simplest and most ideal route to a destination.

Here’s what I noticed as an improvement with my first hour with v14.3. This is not a full review, nor is it reflective of everything I will likely experience with this new version. This is simply what I saw as a noticeable improvement from the past version, v14.2.2.5.

There is also a more streamlined version on X, available at the thread below:

Yellow Light Behavior is Significantly Better

On v14.2.2.5, I had so many instances of the car slamming the brakes on to stop at a yellow light when it was clearly the safer option to proceed through. There were several times when the car would be about 20 feet from the line, traveling at 15-20 MPH, the light would turn yellow, and it would slam the brakes to stop. I would nudge it through yellow lights constantly because of this by putting my foot on the accelerator.

The instances I’m talking about here would not have been close calls — the car would have likely moved through the intersection completely before the light would turn red.

On multiple occasions this evening, FSD proceeded through yellow lights safely, without hesitation or any brake stabbing. It was refreshing:

This was a huge complaint with v14.2.2.5. Sometimes, it’s a safer option to go through a yellow light, especially when you have traffic behind you. It’s a great way to get rear-ended.

Parking Performance

I had four instances of parking, and FSD v14.3 really did a flawless job. I was very impressed with how solid it was, but also with how efficiently it moved into the spot. When there was traffic around with past versions, I usually chose to park manually just because FSD took its time getting into a spot. I don’t see that being an issue anymore.

I complained about parking a lot and shared several images on X and Facebook of those examples:

No issues with it this evening. 4/4. Here are two looks:

Highway Performance

FSD v14.3 passed the five cars shown in this image:

The sixth was 200-300 yards ahead of the fifth. In v14.2.2.5, FSD would usually stay in the left lane, especially on Hurry and Mad Max. It did not do that, as it instead chose to get back over in the right lane after passing the final car.

Speed was not much of a concern here, even though it was going 21 MPH over. Although it was fast, I did have a line of cars behind me traveling at the same speed, and FSD had just merged about a half mile prior, so I chose to let it continue.

There were no instances of camping in the left lane for extended periods of time. I do want to do more testing with the Speed Profiles because they were in need of some work with the previous version. I am starting to side with those who want a Max Speed setting, which was removed last year.

Navigation and Routing Still Need Work

I was heading back toward where I came from, so I turned “Avoid Highways” on to take a different way. This confused the Routing system, and instead of turning left, then right, as the Routing said, the car turned right, then indicated for another right, basically going in a big rectangle. The car ignored the second right-hand turn and continued straight. I ended up turning “Avoid Highways” off and letting the car pick the same routing option as what took me here.

I have truly complained so much about Navigation and Routing that I’m starting to feel sort of bad. It is obviously such a massive challenge for some reason, but I am confident it will improve. I recall seeing Tesla hiring someone for this role a few months back, so perhaps there is hope for it to get better.

Smarter Behavior When Approaching Exits/Routing

This probably should be grouped in with Highway Behavior, but I wanted to highlight it on its own.

The highway exit pictured was always frustrating for v14.2.2.5. In the Hurry speed profile, I have seen it try to execute passes on multiple cars with as little as 0.6 miles to spare before taking the exit.

With three cars ahead of it, it chose to reduce speed and just wait until the exit. It was refreshing to see an improvement here, so I hope this behavior persists. Sometimes there’s just no reason to pass when you’re less than a mile from getting off the highway anyway.

Larger Visibility Warnings

Tesla seems to have increased the size of these “Camera Visibility Limited” warnings. Previously, they were just small thumbnails:

Stop Sign Behavior

This is probably the biggest improvement of all, because how it behaved at Stop Signs in v14.2.2.5 was so incredibly terrible and disruptive to the flow of a busy intersection.

There are several four-way, all-stop intersections near me. In the past, FSD would stop well behind the Stop Sign or the white-painted line on the road. It would then inch forward, stopping again at this line, essentially making two stops at a single intersection.

If there is visibility, I don’t truly care where FSD stops, as long as it stops once. Stopping twice just isn’t ideal or logical. I can’t imagine many humans would do it, I know I wouldn’t.

I didn’t have that issue this evening:

This was pretty tight, too, in the sense that both my car and the other one got to the intersection at the same time. FSD may have stopped first, but the other vehicle was probably around the same point that I was when FSD decided to stop. I was happy to see the assertiveness to proceed; it felt like it was ideal to just go through. I was happy it didn’t stop a second time up at the line. I’d be fine if it stopped at the line, as long as that was the only stop it made.

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