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

(Credit: Tesla)

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5 years ago

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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. 

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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. 

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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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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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4 hours ago

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November 14, 2025

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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Ron Baron states Tesla and SpaceX are lifetime investments

Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.

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6 hours ago

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November 14, 2025

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Credit: @TeslaLarry/X

Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.

Baron doubles down on Tesla

Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.

“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.

A lifelong investment

Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.

“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”

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Watch Ron Baron’s CNBC interview below.

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Tesla CEO Elon Musk responds to Waymo’s 2,500-fleet milestone

While Tesla’s Robotaxi network is not yet on Waymo’s scale, Elon Musk has announced a number of aggressive targets for the service.

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6 hours ago

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November 14, 2025

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Credit: Tesla

Elon Musk reacted sharply to Waymo’s latest milestone after the autonomous driving company revealed its fleet had grown to 2,500 robotaxis across five major U.S. regions. 

As per Musk, the milestone is notable, but the numbers could still be improved.

“Rookie numbers”

Waymo disclosed that its current robotaxi fleet includes 1,000 vehicles in the San Francisco Bay Area, 700 in Los Angeles, 500 in Phoenix, 200 in Austin, and 100 in Atlanta, bringing the total to 2,500 units. 

When industry watcher Sawyer Merritt shared the numbers on X, Musk replied with a two-word jab: “Rookie numbers,” he wrote in a post on X, highlighting Tesla’s intention to challenge and overtake Waymo’s scale with its own Robotaxi fleet.

While Tesla’s Robotaxi network is not yet on Waymo’s scale, Elon Musk has announced a number of aggressive targets for the service. During the third quarter earnings call, he confirmed that the company expects to remove safety drivers from large parts of Austin by year-end, marking the biggest operational step forward for Tesla’s autonomous program to date.

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Tesla targets major Robotaxi expansions

Tesla’s Robotaxi pilot remains in its early phases, but Musk recently revealed that major deployments are coming soon. During his appearance on the All-In podcast, Musk said Tesla is pushing to scale its autonomous fleet to 1,000 cars in the Bay Area and 500 cars in Austin by the end of the year.

“We’re scaling up the number of cars to, what happens if you have a thousand cars? Probably we’ll have a thousand cars or more in the Bay Area by the end of this year, probably 500 or more in the greater Austin area,” Musk said.

With just two months left in Q4 2025, Tesla’s autonomous driving teams will face a compressed timeline to hit those targets. Musk, however, has maintained that Robotaxi growth is central to Tesla’s valuation and long-term competitiveness.

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