Connect with us
tesla fremont production tesla fremont production

News

Tesla’s rivals from legacy auto are facing a day of reckoning due to the pandemic

(Credit: Tesla)

Published

on

In Volkswagen’s Zwickau plant in Germany, a storm seems to be brewing. The veteran automaker has put a lot of its cards on the ID.3, its upcoming all-electric hatchback. But with the pandemic still maintaining its hold on the global automotive market, things are starting to look a lot more challenging. 

Volkswagen initially planned to produce the ID.3 en masse at the expansive facility. The Zwickau plant is expected to be one of the largest electric car factories in the globe, and it is poised to be a key factor in the German automaker’s attempt at closing the gap between itself and electric vehicle pioneer Tesla. Unfortunately for Volkswagen, the pandemic has thrown a proverbial wrench at its plans. 

The effects of the COVID-19 virus will be felt for years to come, and the automotive sector will be among those that will likely take a massive hit. With the economic pressures of the pandemic, car buyers are expected to be more conservative about big ticket purchases. This could prove challenging for veteran automakers and their respective EV programs, as their electric lineup will likely hold a premium price over their more affordable gas-powered cars.

The Volkswagen ID.3. (Credit: John Foulkes/Twitter)

A premium price for electric vehicles will likely be a weight that legacy automakers would have to bear. With dropping oil prices, internal combustion cars could become more attractive to budget-conscious buyers. Tesla is pretty much immune to this, since the company only produces all-electric vehicles, and its cars are only getting more affordable. This was highlighted by the company’s recent decision to drop the price of its Model S, Model 3, and Model X, as well as its release of the Model Y. 

In a recent statement to Bloomberg, Volkswagen has stated that when it comes to its shift to electric vehicles, the company has simply reached a point where there is no turning back. The pandemic has pretty much crushed demand for vehicles, and all-electric cars like the ID.3 are poised to enter uncharted territory. This was addressed by Thomas Ulbrich, who runs Volkswagen’s EV business. In a statement, he noted that ultimately, “we all have a historic task to accomplish to protect the health of our employees—and at the same time get business back on track responsibly.”

For VW, this means that the company has to push through with the ID.3 regardless of the existing challenges in the market. CEO Herbert Diess, an avid supporter of the electric car movement who has earned the respect of Tesla’s Elon Musk, hinted at this in previous comments. In a post last month on LinkedIn, Diess stated that he and his colleagues are still hard at work with the ID.3. “My new working week starts together with Thomas Ulbrich at the wheel of a Volkswagen ID.3 – our most important project to meet the European CO2-targets in 2020 and 2021. We are fighting hard to keep our timeline for the launches to come,” the CEO wrote. 

Advertisement
The Tesla Model Y (Credit: MotorTrend)

Prior to the onset of the coronavirus, Volkswagen was poised to push the ID.3 as the first of its flagship electric vehicle line. But with the pandemic, things are poised for some big changes. The German automaker has already started adapting to these coming changes, and some seem to be partly inspired by younger carmakers such as Tesla. The company, for example, has decided to offer its ID.3 line online. Volkswagen has also started rolling out touchless test drives, just like Tesla in the United States and China. 

But things will not be easy. The global automotive market will take a hit this year because of the pandemic, and some companies may end up in dire straits. French finance minister Bruno Le Maire has stated that Renault SA, the maker of the popular Zoe electric car, can “disappear” without state aid. Even Toyota, a company that is largely considered as an immovable pillar in the automotive segment, has warned that its profits will likely tumble to the lowest level in almost a decade. 

For now, the best bet for automakers planning on releasing electric cars would be to release vehicles that provide what car buyers in the post pandemic would prefer: value and practicality. Tesla’s bet for this lies in the Model Y and the Model 3, as both cars are reasonably priced and offer the best that the EV industry has to offer. Hopefully, automakers like Volkswagen would be able to accomplish the same. 

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.

Advertisement
Comments

News

Tesla won’t implement strange Grok character as Musk dispels rumor

It is nice to see that Tesla is not forcing this kind of character upon owners of their vehicles, especially considering that many people had a real problem with it.

Published

on

Tesla is not going to implement a strange character as a Grok assistant in its vehicles, as CEO Elon Musk dispelled the rumor, which seemed to truly invoke some quite polarizing reactions.

Yesterday, there was some controversy within the Tesla community as rumors of a Grok assistant, named Mūn (pronounced like Moon), being implemented into the vehicles started to circulate.

It had some legitimacy. It was initially posted by an employee, and it appeared to be a relatively confirmed development.

However, it really did rub some people the wrong way. Mūn was an Anime-style female dressed in promiscuous clothing, so it was not everyone’s style, and I’m sure not everyone’s significant other’s cup of tea. It seemed a very strange decision to add it, especially considering that, at the time, there was no confirmation to dispel the arrival of the Grok assistant.

That was until Tesla CEO Elon Musk stepped in to put the speculation to bed once and for all.

It was somewhat strange that this type of issue arose in the first place, but given that it was initially released by an employee, the entire situation is self-explanatory.

It is nice to see that Tesla is not forcing this kind of character upon owners of their vehicles, especially considering that many people had a real problem with it. Many owners did not shy away from the fact that they would like the option to opt out:

For now, Grok remains a part of Tesla vehicles, and personally, it is very nice to have in my Model Y to answer some quick questions I might have or even to entertain some people in the car.

Nevertheless, I am relieved I won’t have this character forced upon me in my vehicle.

Continue Reading

News

U.S. Judge dismisses lawsuit against SpaceX Starship Boca Chica launch site

The ruling found that the FAA had met its obligations in reviewing the potential environmental effects of Starship launches.

Published

on

(Credit: SpaceX)

A U.S. district court judge has dismissed a lawsuit brought by conservation groups challenging the Federal Aviation Administration’s approval of SpaceX’s expanded rocket launch operations in Boca Chica, Texas. 

The ruling, issued Monday, found that the FAA had met its obligations in reviewing the potential environmental effects of Starship launches.

FAA review withstands legal challenge

The lawsuit centered on whether the FAA properly assessed the impact of SpaceX’s operations on endangered wildlife, including ocelots, jaguarundis, and Kemp’s Ridley sea turtles, as noted in a report from The Guardian. The plaintiffs argued that noise, light pollution, and construction activity degraded the surrounding habitat, which also serves as nesting grounds for threatened shorebirds.

The lawsuit cited SpaceX’s April 2023 Starship test, which destroyed its launchpad and scattered debris across a large area. The blast reportedly ignited a grassfire and damaged wildlife habitats, including a bobwhite quail nest.

Judge Carl Nichols, for his part, ruled that the FAA had satisfied its obligation“to take a hard look at the effects of light on nearby wildlife.” The decision effectively cleared a regulatory hurdle for SpaceX, which has been working to expand Starship launch activity at its Boca Chica facility.

Advertisement

A continued ramp

SpaceX continues to scale its operations nationwide. Beyond Starship, the company is also seeking approval to nearly double Falcon rocket launches from Vandenberg Space Force Base in California, from 50 annually to 95. 

Former President Trump has also shared his intention to increase U.S. launch capacity, setting a target for substantial growth by 2030. Considering that SpaceX is by far the world’s dominant launch provider, Trump’s support for more launches will likely benefit the private space company.

For now, at least, the ruling should allow continued expansion at a time when Starship remains central to long-term goals such as Mars missions and NASA’s Artemis program.

Continue Reading

Elon Musk

Pope Leo XIV slams Elon Musk’s pay package due to misinformation (Opinion)

The Pope’s comments seem to be guided by a misunderstanding of what Elon Musk’s pay package entails.

Published

on

Edgar Beltrán, The Pillar, CC BY-SA 4.0 , via Wikimedia Commons

Pope Leo XIV has voiced sharp criticism of corporate pay structures, singling out Tesla CEO Elon Musk and other business leaders as examples of the widening gap between executives and ordinary workers. The pontiff warned that excessive wealth concentration could erode societal values and fuel global polarization.

Pope Leo XIV’s comments seem to be guided by a misunderstanding of what Elon Musk’s pay package entails, and the net positive it would result to TSLA shareholders and the world as a whole.

Pope Leo XIV’s comments

In his first interview since becoming pope in May, Leo XIV, the first US-born head of the Catholic Church, pointed to reports that Musk could become the world’s first trillionaire. As noted in a report from the Financial Times, Pope Leo XIV singled out Elon Musk as an example of the type of wealth that was undermining “the value of human life, of the family, of the value of society.”

“Yesterday, the news (arrived) that Elon Musk is going to be the first trillionaire in the world. What does that mean, and what’s that about? If that is the only thing that has any value any more, then we are in big trouble,” the pontiff stated. 

Musk was not the only executive who caught the ire of the leader of the Catholic Church. He noted that while Musk’s pay was problematic, it was only an example of the “continuously wider gap between the income levels of the working class and the money that the wealthiest receive.” 

Advertisement

“CEOs that 60 years ago might have been making four to six times what the workers are receiving, the last figure I saw, it’s 600 times what average workers are receiving,” he stated.

Borne out of misrepresentation

A look at Pope Leo XIV’s comments surrounding Elon Musk’s wealth suggests that he may not necessarily be familiar with how the CEO earns his net worth. Musk’s wealth is tied to his stakes in his companies, with a good portion of it coming from Tesla and SpaceX. Thus, quite unlike what the mainstream media narrative might suggest, Elon Musk does not necessarily have a giant vault of gold coins he is hoarding somewhere.

If one were to look at Elon Musk’s pay package, which would result in him becoming a trillionaire, one would see that the CEO could only earn his keep if he proves immense value to Tesla and its shareholders. 

His payout might be notable, but he would have to lead Tesla into becoming an $8.5 trillion company first. At this level, Tesla would likely be a notable force of good that would provide a net benefit for people worldwide. Ultimately, it appears that Pope Leo XIV’s comments about Musk may be borne from information gathered only through mainstream sources, some of which tend to have a notable slant against the CEO.

Advertisement
Continue Reading

Trending