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Tesla Model 3 'rival' Volkswagen ID.3 is turning into a cautionary tale

(Credit: Volkswagen)

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6 years ago

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There is a storm brewing in Volkswagen’s Wolfsburg plant, and it can very well make or break the career of CEO Herbert Diess, a strong proponent for the company’s transition to electric mobility. As problems continue to pile up for Volkswagen’s electric car program, the ID.3, a vehicle considered to be a rival to the Tesla Model 3, is starting to turn into a cautionary tale. 

An extensive report from German news outlet Manager Magazin provided an in-depth look at the current state of Volkswagen’s electric vehicle initiative. According to the esteemed magazine, experts and top managers from the automaker are now meeting every working day in a massive push to get the ID.3 ready for consumer deliveries. But despite their disciplined efforts, the affordable EV is proving stubborn, causing notable delays in its release. 

The Volkswagen ID.3 is an essential car for the German automaker, being a personal project for Diess, who has emerged as one of the most prominent voices in the auto industry pushing for electrification. More than a vehicle that can potentially beat the Tesla Model 3 in terms of pricing, the ID.3 is also the automaker’s key in avoiding €10 billion worth of emissions fines this year. Without the ID.3, the penalties cannot be avoided. Even with the vehicle on the market, VW would have to sell about 100,000 in 2020 to meet the company’s CO2 targets. 

Tesla CEO Elon Musk and Volkswagen CEO Herbert Diess exchange compliments at an award ceremony. (Credit: YouTube/AUTO BILD)

But the Volkswagen ID.3 ramp has been rife with issues. While the vehicles can be produced efficiently using the company’s extensive experience in car manufacturing, the ID.3’s software has proven troublesome. Simply put, the software of the vehicle does not work as it should, and VW experts have pointed the finger at the company’s haste in rolling out the all-electric car for production. Volkswagen experts have noted that the ID.3’s underlying architecture was developed too hastily, as the car’s system parts often don’t understand each other, resulting in errors. 

Thus, every day, those involved with the ID.3 project meet and try to solve the car’s underlying issues. Manager Magazin‘s sources note that Volkswagen is now operating at an almost military level in its efforts to fix the ID.3’s software issues, but still, hundreds of test drivers report new faults in the vehicle nearly every day. One of the magazine’s sources, who claimed to be present in these meetings, noted that up to 300 faults could be reported in one day. 

(Credit: John Foulkes/Twitter)

Amidst these issues, Volkswagen has adjusted the ID.3’s target from 100,000 in 2020 to just 80,000. Fortunately for the German automaker, it is a big company, and it includes carmakers such as Audi and Porsche, both of whom have already released their respective electric cars. But even these two companies’ EVs are not exactly rolling out smoothly either. The e-tron recently halted its production due to battery constraints from LG Chem, prompting Audi to lower the premium SUV’s forecast from 70,000 to 40,000 this year. The Porsche Taycan, despite excellent reviews from car enthusiasts, is also getting its deliveries in Germany delayed. 

Volkswagen CEO Herbert Diess has stated that the shift to electric mobility will be difficult, noting at a top management conference last month that the compliance with the limits for supplying, building, and selling battery electric vehicles was “perhaps the most difficult task Volkswagen has ever had to face.” Considering the ID.3 program’s progress so far, as well as reports that the Porsches and Piëchs, VW’s major owners, are growing restless, it appears that the company’s EV challenges may just be beginning. 

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Ultimately, the ID.3’s issues are an unfortunate roadblock to the EV movement as a whole. The vehicle, after all, is a mass-market car, and it has the potential to be the second coming of the ubiquitous Beetle. The company just has to get its software settled and refined first–something that a small carmaker from Silicon Valley seems to have predicted when it started developing its first vehicles less than two decades ago.

H/T to JPR007.

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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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Elon Musk

Norway’s $2 trillion sovereign wealth fund votes against Elon Musk’s 2025 performance award

The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.

Published

7 minutes ago

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November 4, 2025

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Norway’s $2 trillion sovereign wealth fund has voted against Elon Musk’s 2025 performance award, which will be ultimately decided at Tesla’s upcoming annual shareholder meeting. 

The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.

NBIM’s opposition

NBIM confirmed it had already cast its vote against Musk’s pay package, citing concerns over its total size, dilution, and lack of mitigation of key person risk, as noted in a CNBC report. The fund acknowledged Musk’s leadership of the EV maker, and it stated that it will continue to seek dialogue with Tesla about its concerns. 

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation. We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM noted.

The upcoming Tesla annual shareholder meeting will decide whether Musk should receive his proposed 2025 performance award, which would grant him large stock options over the next decade if Tesla hits several ambitious milestones, such as a market cap of $8.5 trillion. The 2025 performance award will also increase Musk’s stake in Tesla to 25%.

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Elon Musk and NBIM

Elon Musk’s proposed 2025 CEO performance award has proven polarizing, with large investors split on whether the executive should be given a pay package that, if fully completed, would make him a trillionaire. 

Institutional Shareholder Services and Glass Lewis have recommended that shareholders vote against the deal, and initiatives such as the “Take Back Tesla” campaign have rallied investors to oppose the proposed performance award. On the other hand, other large investors such as ARK Invest and the State Board of Administration of Florida (SBA) have urged shareholders to approve the compensation plan. 

Interestingly enough, this is not the first time that Musk and NBIM have found themselves on opposing sides. Last year, NBIM voted against reinstating Musk’s 2018 performance award, which had already been fully accomplished but was rescinded by a Delaware judge.

Later reports shared text messages between Musk and NBIM Chief Executive Nicolai Tangen, who was inviting the CEO to a dinner in Oslo. Musk declined the invitation, writing, “When I ask you for a favor, which I very rarely do, and you decline, then you should not ask me for one until you’ve done something to make amends. Friends are as friends do.”

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Elon Musk

Tesla begins production of new Model Y trim at Giga Berlin

Tesla announced on Monday that its Model Y Standard configuration was officially being built at Giga Berlin, less than one month after the company officially announced the configuration early last month.

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2 hours ago

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November 4, 2025

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Credit: Tesla

Tesla has begun production of the new Model Y trim at Gigafactory Berlin, the company’s production plant in Germany.

Tesla announced on Monday that its Model Y Standard configuration was officially being built at Giga Berlin, less than one month after the company officially announced the configuration early last month.

On October 7, Tesla announced the launch of the Model 3 and Model Y Standard trim levels, its answer to the call for affordable EVs within its lineup and its response to the loss of the $7,500 electric vehicle tax credit.

On October 3, Tesla started production of the vehicles in Germany:

The Standard iteration of the Model Y is void of many of the more premium features that are available in the Rear-Wheel-Drive, All-Wheel-Drive, and Performance trims of the vehicle are equipped with.

A few of the features of the Model Y Standard are:

  • Single Motor configuration
  • No rear touchscreen
  • Textile seats with vegan leather, instead of all vegan leather
  • 320-mile range
  • No glass roof

The launch of the Model Y Standard was truly a move to help Tesla get vehicles into the sub-$40,000 price point, and although many consumers were hoping to see the company get closer to $30,000 with these cars, this is a great starting point.

Deliveries in the United States have already started, and it seems it will be a vehicle that will do one of two things: either push some consumers to finally make the jump to Tesla, or it will give car buyers another reason to buy the Premium trims, as they may feel the lack of features is not a good enough deal.

This is something we saw with the Cybertruck’s Rear-Wheel-Drive configuration, which launched last year and ended up being more of the latter option listed above.

The Tesla Model Y Standard is actually a great deal in Europe

It was only a $10,000 discount from the All-Wheel-Drive Cybertruck, but it also did not have adaptive air suspension, premium interiors, or the powered tonneau cover, which many people felt was too much of a sacrifice.

The Rear-Wheel-Drive Cybertruck was discontinued only a few months later.

It does not seem as if this is the case with the Model Y Standard, which already seems to be an attractive option to some buyers.

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Cybertruck

Tesla begins wide rollout of Full Self-Driving v14 to Cybertruck

Published

16 hours ago

on

November 3, 2025

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Credit: Weibo (via YYDS on X)

Tesla has officially begun the wide rollout of Full Self-Driving (Supervised) v14 to the Cybertruck about a month after the company started rolling it out to other vehicles in the fleet.

On Monday, Tesla officially started rolling out v14.1.5 to Cybertruck owners, the first FSD v14 rollout for owners of the all-electric pickup.

Owners have been anxiously waiting for Tesla to begin the wide release of v14 to Cybertruck, as the company said it would refine the suite for the vehicle.

Tesla has finally started rolling out to many owners, who are reporting that their Cybertrucks are downloading Software Update 2025.38.8.5, which contains FSD v14.1.5:

Tesla has to be more cautious with rolling out FSD on the Cybertruck than on other vehicles for a few reasons. Initially, the Cybertruck utilizes an all-wheel steering system that turns differently than the S3XY lineup. This creates a challenge for the Tesla AI team as they have to cater to this specific maneuvering change.

Additionally, the Cybertruck is much larger, and the exterior cameras responsible for seeing the vehicle’s surroundings are placed differently than those of the other vehicles.

This requires additional calibration to ensure safety.

The full release notes for Full Self-Driving v14.1.5 are as follows:

  • Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.
  • Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).
  • Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.
  • Added additional Speed Profile to further customize driving style preference.
  • Improved handling for static and dynamic gates.
  • Improved offsetting for road debris (e.g. tires, tree branches, boxes).
  • Improve handling of several scenarios including: unprotected turns, lane changes, vehicle cut-ins, and school buses.
  • Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.
  • Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!

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