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Tesla’s rivals from legacy auto are facing a day of reckoning due to the pandemic
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.
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.
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.
Tesla has opened a new sweepstakes to allow the public to be among the first to take an initial ride in a Cybercab. This all-electric, steering-wheel-less, pedal-less vehicle is the centerpiece of the company’s autonomous ride-hailing platform, Robotaxi.
There are two ways Tesla fans can get to Austin to take part in the first public rides of the Cybercab: by riding on the Robotaxi platform by August 23, or by mailing a very specific entry to their Headquarters at Gigafactory Texas.
Tesla announced the latter portion of the sweepstakes last night:
🚨 Want to win a trip to Austin to ride in one of the first Cybercab rides ever?
Here’s how:
Tesla has opened up a new sweepstakes to ride in a Cybercab upon its public launch. Here’s the details.
There are two methods of entry into the sweepstakes, and they are as follows:… pic.twitter.com/iJRd4evuWo
— TESLARATI (@Teslarati) August 19, 2026
Tesla will give one entry into the sweepstakes if you mail a 3″ by 5″ piece of paper with your full name, mailing address, telephone number, email address, and date of birth to their address:
Tesla, Robotaxi Sweeps Event
1 Tesla Road,
Austin, TX 78725
There is a limit of one entry per stamped envelope. You can send as many as you’d like, but they must be in separate envelopes.
The company’s unique strategy to give people the opportunity to ride in a Cybercab before pretty much anyone else outside of the company is a hilarious but spot-on representation of how Tesla operates. In classic fashion, they had the perfect response to the event:
— Tesla (@Tesla) August 19, 2026
Cybercab will launch later this month, it appears, especially as it plans to announce the winners of the sweepstakes on August 25. The car has already been operating internally, as employees have been able to utilize the Cybercab for rides in some capacity, something it announced earlier this month.
Tesla weirdly confirms Cybercab employee rides, a huge milestone
Moving forward, the big goal is to get Cybercab out on the roads and integrated into the public Robotaxi fleet, one that will pick up real-world ride-hailers and give them a ride from Point A to Point B.
No matter which way you cut it, it appears Tesla is close to putting a vehicle with no steering wheel and no pedals on the road to help people travel autonomously.
You can ride along with us in our first Cybercab ride from the We, Robot event in October 2024. The video is embedded below:
🎥: Our FULL first ride in the @Tesla Cybercab pic.twitter.com/6gR7OgKRCz
— TESLARATI (@Teslarati) October 11, 2024
Tesla has revealed plans through permit submissions for a massive Robotaxi charging hub in Austin, Texas.
Tesla plans to build the Supercharger hub in multiple phases, with the second phase potentially introducing wireless induction charging, something the company has been developing for the Robotaxi fleet.
Initially, 48 Tesla Robotaxi-geared Superchargers will be built on a lot just across from the St. Elmo, Texas, Service Center. There are about 80 additional spots that will not be impacted by phase 1 of the construction process.
Filings show that the second phase of the project will turn those 80 additional spots into wireless charging for Robotaxi, but it might be an error. The Key Notes state that item 3 is listed as “V4 Charging Cabinet to Support 80 Wireless Chargers in Phase 2. However, the drawings point to V3 Cabinets that are already tied to Superchargers:
There are roughly 128 total spots in the lot, but it is unclear if they will all be used for charging based on what appears to be some sort of typo in the blueprint.
A new Robotaxi fleet charging hub is coming soon to Austin, Texas!!
Permits have been filed for the installation of 48 (V3) stalls in a vehicle storage lot across the road from Tesla’s St Elmo service center. pic.twitter.com/xwRgSWDqht
— MarcoRP (@MarcoRPi1) August 18, 2026
This is among the first Robotaxi charging hubs Tesla has started to develop, as it currently has four others planned throughout various areas: one in Phoenix, one in San Antonio, another in Irving, which will serve the Dallas-Fort Worth area, and another in Las Vegas.
These projects are necessary as Tesla expands its Robotaxi program. Now that preparations have started for the public launch of Cybercab, Robotaxi will likely be expanding aggressively, especially over the next two to three years.
Last night, The Information reported that Tesla was planning to launch Cybercab as soon as the end of August. Hours later, Tesla then announced it was launching a competition for fans to potentially ride in Cybercab during its first public rides.
Tesla’s plan to expand its charging infrastructure in the regions where Robotaxi will initially operate is great preparation for the expanding service. There is still a lot to do, including launching the Cybercab on time.
Tesla got its largest order for the all-electric Class 8 Semi yet, a 500-unit order from Einride AB, a Swedish trucking company.
Einride made the announcement this morning following its second-quarter earnings call. The company said it plans to use 500 Tesla Semi units on its fleet intelligence platform, called Saga AI. The deployments will serve large companies like Amazon and will extend Einride’s electric freight network across logistics routes in California, New Jersey, Texas, Illinois, and Georgia.
🚨 Tesla has received a MASSIVE order from Swedish freight company Einride AB, which placed an order for 500 Tesla Semi trucks
Tesla’s biggest order for the Semi yet! pic.twitter.com/PrtLp5yzvh
— TESLARATI (@Teslarati) August 18, 2026
The deployment is being carried out in several phases over the next two years as Tesla ramps production of the Semi at its dedicated production facility in Sparks, Nevada. Einride will receive its first Semi units in September.
Saga AI
Saga AI is Einride’s dedicated fleet intelligence platform. It enables scaled adoption of electric trucks for freight use and allows shippers to integrate electric capacity without the operational burden or capital risks of managing a fleet. This helps integrate cost-efficient logistics and makes budgeting and forecasting much more accurate.
Tesla Semi’s Adoption
The Tesla Semi is now gathering large-scale clients past those who have helped the company operate a Pilot Program to gain initial information and feedback from real-world drivers.
Perhaps the biggest and most notable is that of Frito-Lay and PepsiCo., who have worked with Tesla for the past several years to dial in the finer details of the truck, including its efficiency and operation-related components.
Tesla Semi gets strange-but-understandable comparison from Jay Leno
There has been tremendous progress in that time, and it even catalyzed Tesla to make some design changes, which were unveiled earlier this year.
But Einride CEO Roozbeh Charli says his company’s partnership with Tesla will continue to push those things forward:
“This deployment is yet another proof point that we can execute at the scale our customers demand. Working closely with Tesla to bring next-generation Semis into active operations quickly and at scale is a testament to the strength of that partnership, and how quickly this technology is maturing from promise to daily operations.”
Additionally, Dan Priestley, the Director of the Semi Program at Tesla, said the partnership is ideal due to Einride’s focus on sustainable transport:
“Einride is at the forefront of sustainable freight, and we are thrilled to deepen our relationship with them through this order of 500 Semis. EV heavy trucks provide lower costs per mile from fuel savings, reduced maintenance, and better uptime over diesel trucks. These savings increase further through operational efficiency when deploying EV trucks at scale, and we are excited that Einride recognizes this and look forward to supporting their deployments.”
Tesla is opening Cybercab rides to a select few
Tesla reveals plans for Robotaxi charging hub in Austin
