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Volkswagen ID.3 gets sharp criticism on build quality, ‘unfinished’ electronics from German auto magazine
During his brief test drive of the Volkswagen ID.3, Tesla CEO Elon Musk remarked that the all-electric hatchback’s steering was “pretty good” for a non-sports car. These observations were pretty much confirmed in a recent review of the ID.3, but based on the findings of the German motoring agency that conducted the test, Volkswagen’s first EV from its MEB platform still has a lot of things that it needs to improve to justify its price.
German auto magazine auto motor und sport was able to conduct a review of the Volkswagen ID.3, covering the vehicle’s driving dynamics, overall build quality, tech, and range. On all but one of these segments, the ID.3 exhibited some issues, leading the magazine to extend some sharp critiques on the vehicle. According to auto motor und sport’s reviewers, the ID.3 has big areas of improvement in build quality, tech, and range.
The magazine noted that Volkswagen has pretty much established a reputation for making cars with great build quality. This seemed to be absent on the ID.3, as reviewers noticed that their review unit had panel gap issues and inconsistent alignments. Hard plastics were also abounding, which made the interior sensitive to dirt.
Unfortunately for the ID.3, its build quality issues were eclipsed by problems with its tech, which the magazine’s reviewers described as “unfinished.” The magazine mentioned a slow infotainment system, a faulty navigation system, and inconsistent voice control, as examples of the ID.3’s tech problems.
“The electronics show clear weaknesses in the near-series test car. The infotainment system only starts up slowly, the navigation system often remains disoriented for several hundred meters. The system does not call up online services at all. The ten-inch monitor is relatively far away from the driver and is therefore somewhat difficult to operate. Switching to voice control is not much fun because the system does not work properly and quickly,” auto motor und sport wrote.
The magazine also mentioned that while the ID.3 was able to manage a range of 359 kilometers (223 miles) during their test, the results were only possible when the team drove the car very defensively. Once the test included motorway and city driving, the ID.3’s efficiency fell, resulting in the car being empty after just 260 kilometers (161 miles).
Not everything about the ID.3 was problematic, however. Just as stated by Elon Musk during his test drive of the vehicle, the ID.3 actually drives pretty well despite its lack of power compared to cars like the Model 3 Performance. The motoring magazine stated that the ID.3 had a perfectly balanced driving behavior, and its brakes performed really well. Unfortunately, even these do not justify the price of the ID.3 test unit, which Volkswagen sets at about 49,000 euros ($57,800) before incentives.
“VW is calling for almost 49,000 euros for the ID.3 test car, before deducting the environmental bonus. Measured against the quality construction (issues) that the testers from auto motor und sport found, it should be half at best. VW has to make improvements here as soon as possible. Unlike their competitor Tesla, the Wolfsburg-based company certainly doesn’t have a ‘beginner’s’ bonus,” the German magazine noted.
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Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Elon Musk
Tesla Giga Texas to feature massive Optimus V4 production line
This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.
Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.
Optimus 4 production
In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas.
This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4.
“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated.
How big Optimus could become
During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world.
“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP.
“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
Tesla Giga Texas to feature massive Optimus V4 production line
