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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.

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.

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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.

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.

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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 Giga Berlin makes big move amid strong sales and demand

“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”

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Credit: Tesla Manufacturing

Tesla is making a big move at its factory in Germany, known as Giga Berlin, as managers at the plant have indicated the company plans to increase its production rate for the remainder of the year.

Giga Berlin is responsible for manufacturing Model Y vehicles for several markets worldwide, including those outside of Europe. It was opened in March 2022, and it recently built its 500,000th Model Y in March and its 100,000th new Model Y just three weeks ago.

Due to some encouraging sales figures in the markets it provides vehicles for, Tesla said it is planning to increase production at the factory for the remainder of the year.

Andrè Thierig, plant manager at Giga Berlin, said to German news outlet DPA on Sunday that market data has encouraged a move to be made regarding the production at the factory:

“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”

It is interesting to see this kind of narrative from Thierig, especially as data has shown Tesla has struggled in various markets, including Germany, this year.

Sales drops have been reported, but other markets are holding strong, especially those in Northern Europe, such as Norway, where the Model Y saw a nearly 39 percent increase in sales in August compared to the same month the previous year.

Tesla Model Y leads sales rush in Norway in August 2025

Gigafactory Berlin supplies vehicles for other markets, such as Canada, Australia, and New Zealand, which are strategically important to avoid tariffs. It also builds cars for the Middle East.

Thierig reiterated this point during the interview with DPA:

“We supply well over 30 markets and definitely see a positive trend there.”

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Tesla analyst says Musk stock buy should send this signal to investors

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

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(Credit: Tesla)

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.

One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

Dorsheimer said in the note:

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”

Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.

He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.

Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.

In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:

“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”

Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.

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Morgan Stanley’s Adam Jonas dubs Tesla FSD a “game changer” after marathon drive

Jonas reported that FSD handled more than 99% of the miles.

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Credit: Tesla Europe & Middle East/X

Morgan Stanley’s analyst Adam Jonas shared a notable endorsement of Tesla’s Full Self-Driving (FSD) software after completing a 1,400-mile round trip from New York to Michigan in his Model Y. 

Jonas reported that FSD handled more than 99% of the miles, calling the system “a game changer” for long-distance driving.

Hands-free experience

Jonas drove his 2021 Tesla Model Y equipped with Hardware 3 and FSD Supervised v12.6.4, and he used the system nearly the entire trip. “Having your hands off the wheel and feet off the pedals for nearly 12 hours of driving is a real game changer that is hard to appreciate without experiencing it for yourself,” he noted.

He explained that outside of two heavy downpours, one on the Pennsylvania Turnpike and another in suburban Detroit, plus some light maneuvering in fast food parking lots, FSD handled the drive without any human intervention. “FSD made no mistakes or close calls that I recall. The system handles highways very safely and confidently. I cannot imagine buying another EV without FSD.”

Broader implications

Jonas added that he has used FSD consistently over the past 18 months, and the $8,000 he paid for the feature feels like a bargain considering the value. He also praised Tesla’s Supercharging network, which supported his trip without issue.

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Jonas has been one of Wall Street’s most closely followed voices on Tesla, and his comments add weight to the ongoing debate about the role of autonomy in the company’s future. His current price target for Tesla stock stands at $410. During Morgan Stanley’s 13th Annual Laguna Conference, he echoed similar experiences with Tesla’s software, emphasizing that FSD “probably drove well over 99% of the miles” on his recent trips.

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