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Tesla rival Porsche is starting to realize it’s not easy to produce the Taycan
Porsche recently opened reservations for the company’s first all-electric car, the Tesla Model S-rivaling Taycan (formerly known as the Mission E sedan). In an announcement earlier this month, Porsche Managing Director Alexander Pollich stated that the reception to the upcoming vehicle, whose final production version has not yet been unveiled, has so far been encouraging. Porsche expects to start producing the Taycan sometime in 2019, in order to meet what appears to be a healthy demand for the electric car.
As it turns out, ramping production of the Taycan is turning out to be a challenging task for the veteran automaker. Porsche plans to build its Taycan line at a facility located at Zuffenhausen, a suburb in Stuttgart, Germany. The site is a historic location for the pedigreed brand, considering that it is the location where the Porsche 911, one of the company’s most iconic vehicles, is being produced. Other important cars in Porsche’s lineup, such as the 718 Boxster, as well as the 718 Cayman, are also manufactured in the same facility.
Porsche is aiming to produce 20,000 Taycans per year in the Zuffenhausen site. Starting and ramping the production of the all-electric sedan requires a complex reorganization of Porsche’s facility, especially considering that the Taycan’s line has to be built while the production of the 911, 718 Boxster, and 718 Cayman is running at full capacity. In a statement to Dutch auto publication Vroom, Porsche head of production Albrecht Reimold described the difficulties facing the company.
“Finding the right location is a difficult decision. Transforming the existing factory costs a lot of money, moving to a new location as well. Transforming a factory while the production lines are running at full capacity is not an easy task,” he said.
Project manager David Thor Trygvason elaborated on the complex challenge involved in building the Taycan’s production line. According to Trygvason, the location where the Taycan’s line would be set up has to be overhauled. Apart from this, Porsche’s estimated timeline for the project is 48 months, making the project quite costly and demanding.
“The existing location has to be demolished and rebuilt in a short time, but at the same time the production of the 911 and 718 Boxster and Cayman must continue to run. That makes it not only difficult in terms of time and money, but also in terms of logistics and mobility. After all, we are in a location where there is already a factory, where other companies are nearby and where people live nearby,” he said.
Despite these difficulties, Reimold noted that Porsche employees have expressed a sincere commitment to begin the production of the Taycan as early as possible. According to the Porsche executive, the company’s workers have agreed to help finance the factory overhaul by opting to keep their pay flat until 2026, at which point the employees will start getting their investments back. This means that the employees will not have regular salary raises for the next few years.
“We have agreed with them to invest a part of their wage increase until 2025 in the construction of the new factory. From 2026, they will simply receive their investment back,” Reimold said.
Considering that Porche has dubbed the Taycan as one of the company’s most important vehicles after the iconic 911, sacrifices made to start the electric car’s production appear to be necessary, at least for now. If any, Porsche’s struggles to build the Taycan at scale mirror those that have been faced by Tesla with its Model 3 ramp. Just like Porsche’s factory, Tesla also set up its Model 3 lines in the same facility building the Model S and Model X. The aggressive ramp, which CEO Elon Musk aptly dubs as “production hell,” has been haunting the electric car maker for the past year. Ultimately, Porsche’s current difficulties with the Taycan are an indication that Tesla’s struggles with Model 3 production are not problems exclusive to the California-based electric car maker.
Building cars is not a simple task. Building cars that people want to buy is even more challenging. With car buyers and the auto market steadily shifting its interest to electric vehicles, carmakers with upcoming battery-powered cars are now feeling the pressure to roll out their offerings as quickly as they can. Being one of the legacy carmakers who has committed to releasing an electric car, this is something that Porsche appears to be experiencing now. Nevertheless, with a line of reservations that are growing longer, and with a workforce determined to make sacrifices for the company, there is a good chance that the Porsche Taycan can still make it in time for its anticipated debut next year. According to Trygvason, the work being done in Porsche’s factory might be daunting, but “the good news is that the work is still fully on schedule.”
The Porsche Taycan is expected to feature the legacy carmaker’s trademark performance, with the vehicle listed with a 0-60 mph time of 3.5 seconds, a range of 310 miles per charge, and a top speed of 155 mph.
News
Tesla puts Giga Berlin in Plaid Mode with new massive investment
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.
The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.
Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.
Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.
The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.
With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.
As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.
News
Honda gives up on all-EV future: ‘Not realistic’
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Mibe said (via Motor1):
“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”
Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.
Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.
There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.
Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles
Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.
For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.
Elon Musk
Delta Airlines rejects Starlink, and the reason will probably shock you
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
SpaceX frontman Elon Musk explained on Wednesday why commercial airline Delta got cold feet over offering Starlink for stable internet on its flights — and the reason will probably shock you.
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
Delta rejected Starlink because it insisted on routing all connectivity through its branded “Delta Sync” portal rather than allowing a simple Starlink experience.
Instead, the airline partnered with Amazon’s Project Kuiper—rebranded as Amazon Leo—for high-speed Wi-Fi on up to 500 aircraft, with rollout targeted for 2028. At the time of the announcement, Kuiper had roughly 300 satellites in orbit, while Starlink operated more than 10,400.
The use of the “Delta Sync” portal would not work for SpaceX, as Musk went on to say that:
“SpaceX requires that there be no annoying ‘portal’ to use Starlink. Starlink WiFi must just work effortlessly every time, as though you were at home. Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning strategy.”
Musk doubled down in a follow-up post:
“Yes, SpaceX deliberately accepted lower revenue deals with airlines in exchange for making Starlink super easy to use and available to all passengers.”
Not exactly. SpaceX requires that there be no annoying “portal” to use Starlink.
Starlink WiFi must just work effortlessly every time, as though you were at home.
Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning…
— Elon Musk (@elonmusk) May 13, 2026
SpaceX has structured its airline agreements to prioritize zero-friction access—no captive portals, no SkyMiles logins, no paywalls or ads blocking basic connectivity.
While this means forgoing higher-margin deals that would let carriers monetize the service more aggressively, it ensures Starlink feels like home broadband at 35,000 feet. Passengers on partner airlines such as United, Qatar Airways, and Air France have already praised the service for enabling seamless video calls, streaming, and work mid-flight without interruptions.
Delta’s choice reflects a different philosophy. By keeping Wi-Fi behind its Delta Sync ecosystem, the airline aims to drive loyalty program engagement and control the digital passenger journey. Yet, critics argue this short-term control comes at the expense of immediate competitiveness.
Airlines already installing Starlink are pulling ahead in customer satisfaction surveys, while Delta passengers face years of reliance on slower, legacy systems until Leo launches.
SpaceX’s decision to trade revenue for simplicity will pay off in the longer term, as Starlink is already positioning itself as the default high-speed option for carriers that value passenger satisfaction over incremental fees.
Musk’s focus on creating not only a great service but also a reasonable user experience highlights SpaceX’s prowess with Starlink as it continues to expand across new partners and regions.
Tesla puts Giga Berlin in Plaid Mode with new massive investment
Honda gives up on all-EV future: ‘Not realistic’
