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

(Credit: Volkswagen)

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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. 

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.

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H/T to JPR007.

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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Why automakers keep turning down Elon Musk’s Tesla Full Self-Driving offer

Elon Musk confirms no automaker has ever accepted Tesla’s offer to license Full Self-Driving software.

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Elon Musk gave a brief answer on X Monday that confirmed that Tesla’s standing offer to license Full Self-Driving to other automakers still has zero takers. Sawyer Merritt wrote that “Tesla has for years openly invited other automakers to license FSD. None of them have accepted,” responding to a prediction from Boom Supersonic founder Blake Scholl that Tesla would eventually open FSD the way it opened its Supercharger network to rival brands. Musk’s reply to Merritt was one word: “Exactly.”

It is not the first time Musk has made this point. He said something similar in November, when he called legacy automakers reluctance to adopt FSD “crazy,” and Tesla has floated the offer publicly since at least 2021. Scholl’s prediction touches on something real. Once NACS became the de facto charging standard, adoption from Ford, GM, Rivian and others followed within about a year. FSD licensing was supposed to work the same way once Tesla built enough of a lead that switching made sense for everyone.

The case for licensing now is stronger than it was two years ago. Waymo and Zoox are logging hundreds of thousands of unsupervised autonomous miles, along with Tesla’s own Robotaxi fleet. Every automaker still selling driver assist systems that lag FSD has given the robotaxi conversation to Tesla, Waymo and Zoox by default. Licensing FSD would let a GM or a Ford compete on the same field without spending a decade and billions of dollars building a stack from scratch, the same argument Tesla made when it opened the Supercharger network to bring more EVs onto its chargers.

But FSD is not a connector standard. As one reply to Musk’s post pointed out, licensing FSD is not a software license the way NACS was a plug spec. It requires adopting Tesla’s eight camera layout and its onboard compute architecture, meaning a licensee’s cars would effectively become Tesla hardware wearing someone else’s badge. That is the visible obstacle. The less visible one is data. A licensed FSD stack would report back the same telemetry Tesla collects from its own fleet, giving Tesla a continuous read on how a competitor’s cars are actually driven, where they struggle, and how often drivers intervene. For an automaker trying to build its own autonomy program, or simply trying to keep its build quality and safety record private, handing Tesla that visibility could be a bigger cost than the hardware bill. It is the reason the Supercharger comparison only goes so far. Opening a charging plug cost Tesla very little. Opening FSD would cost a rival something it cannot get back.

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Tesla Roadster is available for order once again following brief hold

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(Credit: luxunsheep/Instagram)

Tesla has reopened reservations for its long-delayed next-generation Roadster, asking buyers for a $50,000 deposit just days before an October 1 reveal event in Waco, Texas. The move revives a reservation process first launched in 2017 and later paused when Tesla pulled pricing from its website in 2021.

The reservation page requires an immediate $5,000 credit-card payment, described as fully refundable, followed by a $45,000 wire transfer due within 10 days, which is identical to what was expected previously. Reservations are not considered final until the wire clears.

The structure matches the 2017 terms Tesla used when it first collected deposits after unveiling a prototype. Tesla has not published a confirmed retail price or production start date on the order page.

The October 1 event is scheduled in Waco, about 90 minutes north of Tesla’s Austin headquarters and near SpaceX’s McGregor rocket test site. Tesla sent invitations to existing reservation holders and posted a “Go for launch” teaser on September 12.

The Federal Aviation Administration (FAA) established a temporary flight restriction over the McGregor area from September 18 through October 2, consistent with plans for a demonstration involving SpaceX-designed cold-gas thrusters. Elon Musk has previously described the optional package as enabling extreme acceleration or brief hovering. Tesla has said the event will include pricing, specifications, and production targets.

The second-generation Roadster was first shown in November 2017 during Tesla’s Semi launch. Musk promised production in 2020, with claimed performance of 0-60 mph in 1.9 seconds, more than 250 mph top speed, and roughly 620 miles of range.

Those targets have slipped repeatedly.

Tesla later pointed to 2022, 2023, 2024, and 2025-2026 before indicating production would not begin until 2027 or 2028 at Gigafactory Texas. Design work has continued, with reports of a sharper, Cybertruck-influenced look replacing the original curvy prototype.

Original reservation holders who paid $50,000 in 2017, or $250,000 for the Founders Series, have waited nearly nine years without a production car. Some high-profile customers canceled. Tesla’s decision to reopen orders now, after previously shutting them down, tests whether new buyers will commit substantial funds before seeing a finalized production vehicle. The October 1 event is intended to answer remaining questions about what those buyers will actually receive and when.

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Tesla Full Self-Driving expands to another European country

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Credit: Tesla

Tesla’s Full Self-Driving (Supervised) is heading to Czechia after the Czech Ministry of Transport recognised the Dutch RDW’s provisional type approval, making the country the seventh EU member state to clear the system for public roads. Tesla Europe announced on 21 September 2026 that “FSD Supervised is now approved in Czechia” and that rollout “will begin soon.”

The decision marks a notable reversal. Earlier in 2026, Prague had declined to automatically recognise the Netherlands’ April approval, citing concerns over speed-limit compliance, traffic-sign recognition and driver-attention monitoring, and arguing that a coordinated EU approach was preferable. Officials said months of expert review, talks with Tesla and other member states, and real-world data from countries already using the system resolved those issues.

“Safety remains the top priority,” the ministry stated.

FSD Supervised remains a Level 2 driver-assistance system: the driver must stay engaged and is legally responsible. Eligible vehicles need AI4, the company’s most up-to-date hardware version. Tesla is expected to push the feature over the air in the coming days, following the pattern seen after earlier national approvals.

Europe’s rollout began when Dutch regulator RDW issued a provisional EU type approval on 10 April 2026 after extensive testing. Mutual recognition then produced a rapid cascade: Lithuania (20 May), Estonia (29 May), Denmark (9 June), Belgium (10 June) and Slovenia (7 September). Czechia now completes that list of seven.

The approvals cover only a modest share of the EU population, but they add political weight ahead of a 6 October vote by the Technical Committee on Motor Vehicles. A qualified majority, at least 15 of 27 member states representing 65 percent of the EU population, could open the remaining markets, including large ones such as Germany, France, Italy and Spain that have so far preferred to wait for a bloc-wide decision.

For Czech Tesla owners, the immediate prize is access to the same supervised highway and city driving already available in the other six countries. For Tesla, each new market generates additional European driving data and strengthens the case that FSD Supervised can operate safely under the continent’s varied road rules. The Czech approval is therefore both a local milestone and another incremental step toward a wider European launch.

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