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BMW’s potential EV program revival to be decided as Oliver Zipse nears new CEO post

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6 years ago

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BMW’s electric car initiative is at a crossroads. After mostly being shelved by outgoing CEO Harald Krüger during his years leading the company, BMW’s EV program has the potential to see a revival with the naming of its new chief executive. Fortunately, recent reports indicate that BMW is set to name the rather understated Oliver Zipse over Klaus Fröhlich as the carmaker’s new CEO. 

BMW’s supervisory board is expected to discuss the company’s new leadership at the Spartanburg, South Carolina plant on Thursday. So far, reports indicate that the 55-year-old Zipse is the favored candidate over the 59-year old Fröhlich, who serves as BMW’s Head of Development. Fröhlich had attracted a number of headlines as of late, particularly when he insisted that there was no demand for electric vehicles. 

Zipse joined BMW as a trainee back in 1991, rising through the company’s ranks and holding several posts. Prior to becoming a board member for production, Zipse worked as the carmaker’s Head of Brand and Product Strategies. Over his years with the company, Zipse has shown proficiency in manufacturing efficiencies. BMW’s efficient production network, which was expanded in Hungary, China, and the United States, emerged under Zipse’s lead, and it has helped the carmaker deliver healthy profit margins. 

Auto analysts and industry experts believe that it will take more than manufacturing expertise to lead BMW into the EV era. In a statement to Reuters, Carsten Breitfeld, a former BMW engineer who currently serves as the chief executive of China-based ICONIQ motors, noted that Zipse’s apparent appointment “goes far beyond optimizing an existing business.” “He needs to be able to build teams, to attract key talent, and to promote a culture which is increasingly oriented along consumer electronics and internet dynamics,” the former BMW engineer said. 

One key aspect that Zipse would have to work on is BMW’s electric car program, which has lagged against rivals like Mercedes-Benz and Audi, both of which have already released, or a least unveiled, their own premium all-electric vehicles. BMW actually had an early lead with the i3, but the vehicle was practically abandoned by the company when it failed to get traction. 

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Silicon Valley-based Tesla, a newcomer on the market, has so far established a substantial lead in the EV space, and its Model 3 sedan has started eating into the sales of popular gas-powered four-doors like the BMW 3-Series. UBS analyst Patrick Hummel addressed this, stating that “Tesla has a lead of three to four years in areas like software and electronics. The millennials are much more focused on these things. There is a risk that the Germans can’t catch up.”  

BMW had already made a mistake in electric vehicles once. During the time of the i3, it was reported that CEO Harald Krüger’s reluctance to push low-margin EVs ultimately led to an exodus of talented engineers. Among these are Christian Senger, who is now a board member responsible for software for Volkswagen, and Markus Duesmann, who is reportedly in line to be Audi’s CEO in the future. If BMW does decide on Zipse, it could have another chance at breaking through the emerging EV market, albeit late.

Now, if BMW elects the electric car-dismissing Klaus Fröhlich as its next CEO instead, the German carmaker could be looking into even more turbulent years ahead.

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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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Investor's Corner

Tesla analyst realizes one big thing about the stock: deliveries are losing importance

Published

3 hours ago

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December 15, 2025

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Credit: Joe Tegtmeyer | YouTube

Tesla analyst Dan Levy of Barclays realized one big thing about the stock moving into 2026: vehicle deliveries are losing importance.

As a new era of Tesla seems to be on the horizon, the concern about vehicle deliveries and annual growth seems to be fading, at least according to many investors.

Even CEO Elon Musk has implied at times that the automotive side, as a whole, will only make up a small percentage of Tesla’s total valuation, as Optimus and AI begin to shine with importance.

He said in April:

“The future of the company is fundamentally based on large-scale autonomous cars and large-scale and large volume, vast numbers of autonomous humanoid robots.”

Levy wrote in a note to investors that Tesla’s Q4 delivery figures “likely won’t matter for the stock.” Barclays said in the note that it expects deliveries to be “soft” for the quarter.

In years past, Tesla analysts, investors, and fans were focused on automotive growth.

Cars were truly the biggest thing the stock had to offer: Tesla was a growing automotive company with a lot of prowess in AI and software, but deliveries held the most impact, along with vehicle pricing. These types of things had huge impacts on the stock years ago.

In fact, several large swings occurred because of Tesla either beating or missing delivery estimates:

  • January 3, 2022: +13.53%, record deliveries at the time
  • January 3, 2023: -12.24%, missed deliveries
  • July 2, 2024: +10.20%, beat delivery expectations
  • October 3, 2022: -8.61%, sharp miss due to Shanghai factory shutdown
  • July 2, 2020: +7.95%, topped low COVID-era expectations with sizeable beat on deliveries

It has become more apparent over the past few quarters that delivery estimates have significantly less focus from investors, who are instead looking for progress in AI, Optimus, Cybercab, and other projects.

These things are the future of the company, and although Tesla will always sell cars, the stock is more impacted by the software the vehicle is running, and not necessarily the vehicle itself.

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Tesla removes Safety Monitors, begins fully autonomous Robotaxi testing

This development, in terms of the Robotaxi program, is massive. Tesla has been working incredibly hard to expand its fleet of Robotaxi vehicles to accommodate the considerable demand it has experienced for the platform.

Published

15 hours ago

on

December 14, 2025

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Credit: @Mandablorian | X

Tesla has started Robotaxi testing in Austin, Texas, without any vehicle occupants, the company’s CEO Elon Musk confirmed on Sunday. Two Tesla Model Y Robotaxi units were spotted in Austin traveling on public roads with nobody in the car.

The testing phase begins just a week after Musk confirmed that Tesla would be removing Safety Monitors from its vehicles “within the next three weeks.” Tesla has been working to initiate driverless rides by the end of the year since the Robotaxi fleet was launched back in June.

Two units were spotted, with the first being seen from the side and clearly showing no human beings inside the cabin of the Model Y Robotaxi:

Another unit, which is the same color but was confirmed as a different vehicle, was spotted just a few moments later:

The two units are traveling in the general vicinity of the South Congress and Dawson neighborhoods of downtown Austin. These are located on the southside of the city.

This development, in terms of the Robotaxi program, is massive. Tesla has been working incredibly hard to expand its fleet of Robotaxi vehicles to accommodate the considerable demand it has experienced for the platform.

However, the main focus of the Robotaxi program since its launch in the Summer was to remove Safety Monitors and initiate completely driverless rides. This effort is close to becoming a reality, and the efforts of the company are coming to fruition.

It is a drastic step in the company’s trek for self-driving technology, as it plans to expand it to passenger vehicles in the coming years. Tesla owners have plenty of experience with the Full Self-Driving suite, which is not fully autonomous, but is consistently ranked among the best-performing platforms in the world.

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Tesla refines Full Self-Driving, latest update impresses where it last came up short

We were able to go out and test it pretty extensively on Saturday, and the changes Tesla made from the previous version were incredibly impressive, especially considering it seemed to excel where it last came up short.

Published

1 day ago

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December 14, 2025

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Credit: TESLARATI

Tesla released Full Self-Driving v14.2.1.25 on Friday night to Early Access Program (EAP) members. It came as a surprise, as it was paired with the release of the Holiday Update.

We were able to go out and test it pretty extensively on Saturday, and the changes Tesla made from the previous version were incredibly impressive, especially considering it seemed to excel where it last came up short.

Tesla supplements Holiday Update by sneaking in new Full Self-Driving version

With Tesla Full Self-Driving v14.2.1, there were some serious regressions. Speed Profiles were overtinkered with, causing some modes to behave in a strange manner. Hurry Mode was the most evident, as it refused to go more than 10 MPH over the speed limit on freeways.

It would routinely hold up traffic at this speed, and flipping it into Mad Max mode was sort of over the top. Hurry is what I use most frequently, and it had become somewhat unusable with v14.2.1.

It seemed as if Speed Profiles should be more associated with both passing and lane-changing frequency. Capping speeds does not help as it can impede the flow of traffic. When FSD travels at the speed of other traffic, it is much more effective and less disruptive.

With v14.2.1.25, there were three noticeable changes that improved its performance significantly: Speed Profile refinements, lane change confidence, and Speed Limit recognition.

Speed Profile Refinement

Speed Profiles have been significantly improved. Hurry Mode is no longer capped at 10 MPH over the speed limit and now travels with the flow of traffic. This is much more comfortable during highway operation, and I was not required to intervene at any point.

With v14.2.1, I was sometimes assisting it with lane changes, and felt it was in the wrong place at the wrong time more frequently than ever before.

However, this was one of the best-performing FSD versions in recent memory, and I really did not have any complaints on the highway. Speed, maneuvering, lane switching, routing, and aggressiveness were all perfect.

Lane Changes

v14.2.1 had a tendency to be a little more timid when changing lanes, which was sort of frustrating at times. When the car decides to change lanes and turn on its signal, it needs to pull the trigger and change lanes.

It also changed lanes at extremely unnecessary times, which was a real frustration.

There were no issues today on v14.2.1.25; lane changes were super confident, executed at the correct time, and in the correct fashion. It made good decisions on when to get into the right lane when proceeding toward its exit.

It was one of the first times in a while that I did not feel as if I needed to nudge it to change lanes. I was very impressed.

Speed Limit Recognition

So, this is a complex issue. With v14.2.1, there were many times when it would see a Speed Limit sign that was not meant for the car (one catered for tractor trailers, for example) or even a route sign, and it would incorrectly adjust the speed. It did this on the highway several times, mistaking a Route 30 sign for a 30 MPH sign, then beginning to decelerate from 55 MPH to 30 MPH on the highway.

This required an intervention. I also had an issue leaving a drive-thru Christmas lights display, where the owners of the private property had a 15 MPH sign posted nearly every 200 yards for about a mile and a half.

The car identified it as a 55 MPH sign and sped up significantly. This caused an intervention, and I had to drive manually.

It seems like FSD v14.2.1.25 is now less reliant on the signage (maybe because it was incorrectly labeling it) and more reliant on map data or the behavior of nearby traffic.

A good example was on the highway today: despite the car reading that Route 30 sign and the Speed Limit sign on the center screen reading 30 MPH, the car did not decelerate. It continued at the same speed, but I’m not sure if that’s because of traffic or map data:

A Lone Complaint

Tesla has said future updates will include parking improvements, and I’m really anxious for them, because parking is not great. I’ve had some real issues with it over the past couple of months.

Today was no different:

Full Self-Driving v14.2.1.25 is really a massive improvement over past versions, and it seems apparent that Tesla took its time with fixing the bugs, especially with highway operation on v14.2.1.

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