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.
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.
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.
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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Tesla arsonist who burned Cybertruck sees end of FAFO journey
The man has now reached the “Find Out” stage.
A Mesa, Arizona man has been sentenced to five years in federal prison for setting fire to a Tesla location and vehicle in a politically motivated arson attack, federal prosecutors have stated.
The April 2025 incident destroyed a Tesla Cybertruck, endangered first responders, and triggered mandatory sentencing under federal arson laws.
A five-year sentence
U.S. District Judge Diane J. Humetewa sentenced Ian William Moses, 35, of Mesa, Arizona, to 5 years in prison followed by 3 years of supervised release for maliciously damaging property and vehicles by means of fire. Moses pleaded guilty in October to all five counts brought by a federal grand jury. Restitution will be determined at a hearing scheduled for April 13, 2026.
As per court records, surveillance footage showed Moses arriving at a Tesla store in Mesa shortly before 2 a.m. on April 28, 2025, carrying a gasoline can and backpack. Investigators stated that he placed fire starter logs near the building, poured gasoline on the structure and three vehicles, and ignited the fire. The blaze destroyed a Tesla Cybertruck. Moses fled the scene on a bicycle and was arrested by Mesa police about a quarter mile away, roughly an hour later.
Authorities said Moses was still wearing the same clothing seen on camera at the time of his arrest and was carrying a hand-drawn map marking the dealership’s location. Moses also painted the word “Theif” on the walls of the Tesla location, prompting jokes from social media users and Tesla community members.
The “Finding Out” stage
U.S. Attorney Timothy Courchaine noted that Moses’ sentence reflects the gravity of his crime. He also highlighted that arson is never acceptable.
“Arson can never be an acceptable part of American politics. Mr. Moses’ actions endangered the public and first responders and could have easily turned deadly. This five-year sentence reflects the gravity of these crimes and makes clear that politically fueled attacks on Arizona’s communities and businesses will be met with full accountability.”
Maricopa County Attorney Rachel Mitchell echoed the same sentiments, stating that regardless of Moses’ sentiments towards Elon Musk, his actions are not defensible.
“This sentence sends a clear message: violence and intimidation have no place in our community. Setting fire to a business in retaliation for political or personal grievances is not protest, it is a crime. Our community deserves to feel safe, and this sentence underscores that Maricopa County will not tolerate political violence in any form.”
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Tesla says its Texas lithium refinery is now operational and unlike anything in North America
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
Tesla has confirmed that its Texas lithium refinery is now operational, marking a major milestone for the company’s U.S. battery supply chain. In a newly released video, Tesla staff detailed how the facility converts raw spodumene ore directly into battery-grade lithium hydroxide, making it the first refinery of its kind in North America.
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
A first-of-its-kind lithium refining process
In the video, Tesla staff at the Texas lithium refinery near Corpus Christi explained that the facility processes spodumene, a lithium-rich hard-rock ore, directly into battery-grade lithium hydroxide on site. The approach bypasses intermediate refining steps commonly used elsewhere in the industry.
According to the staff, spodumene is processed through kilns and cooling systems before undergoing alkaline leaching, purification, and crystallization. The resulting lithium hydroxide is suitable for use in batteries for energy storage and electric vehicles. Tesla employees noted that the process is simpler and less expensive than traditional refining methods.
Staff at the facility added that the process eliminates hazardous byproducts typically associated with lithium refining. “Our process is more sustainable than traditional methods and eliminates hazardous byproducts, and instead produces a co-product named anhydrite, used in concrete mixes,” an employee noted.
Musk calls the facility the largest lithium refinery in America
The refinery’s development timeline has been very impressive. The project moved from breaking ground in 2023 to integrated plant startup in 2025 by running feasibility studies, design, and construction in parallel. This compressed schedule enabled the fastest time-to-market for a refinery using this type of technology. This 2026, the facility has become operational.
Elon Musk echoed the significance of the project in posts on X, stating that “the largest Lithium refinery in America is now operational.” In a separate comment, Musk described the site as “the most advanced lithium refinery in the world” and emphasized that the facility is “very clean.”
By bringing large-scale lithium hydroxide production online in Texas, Tesla is positioning itself to reduce reliance on foreign refining capacity while supporting its growth in battery and vehicle production. The refinery also complements Tesla’s nascent domestic battery manufacturing efforts, which could very well be a difference maker in the market.
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Tesla Optimus V3 gets early third-party feedback, and it’s eye-opening
Jason Calacanis’ remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot
Angel investor and entrepreneur Jason Calacanis shared some insights after he got an early look at Tesla’s upcoming Optimus V3. His remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot.
Calacanis’ comments were shared publicly on X, and they were quite noteworthy.
The angel investor stated that he visited Tesla’s Optimus lab on a Sunday morning and observed that the place was buzzing with energy. The investor then shared a rare, shocking insight. As per Calacanis, Optimus V3 will be so revolutionary that people will probably not even remember that Tesla used to make cars in the future.
“I don’t want to name drop, but two Sundays ago, I went to Tesla with Elon and I went and visited the Optimus lab. There were a large number of people working on a Sunday at 10 a.m. and I saw Optimus 3. I can tell you now, nobody will remember that Tesla ever made a car,” he noted.
The angel investor also reiterated the primary advantage of Optimus, and how it could effectively change the world.
“They will only remember the Optimus and that he is going to make a billion of those, and it is going to be the most transformative technology product ever made in the history of humanity, because what LLMs are gonna enable those products to do is understand the world and then do things in the world that we don’t want to do. I believe there will be a 1:1 ratio of humans to Optimus, and I think he’s already won,” he said.
While Calacanis’ comments were clearly opinion-driven, they stood out as among the first from a non-Tesla employee about Optimus V3. Considering his reaction to the humanoid robot, perhaps Elon Musk’s predictions for Optimus V3 might not be too far-fetched at all.
Tesla has been careful with its public messaging around Optimus V3’s development stage. Musk has previously stated on X that Optimus V3 has not yet been revealed publicly, clarifying that images and videos of the robot online still show Optimus V2 and V2.5, not the next-generation unit. As for Calacanis’ recent comments, however, Musk responded with a simple “Probably true” in a post on X.
Tesla arsonist who burned Cybertruck sees end of FAFO journey
Tesla says its Texas lithium refinery is now operational and unlike anything in North America
