News

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

(Credit: Tesla)

Published

5 years ago

May 28, 2020

Simon Alvarez

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.

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.

News

Tesla threatened in France with claims of ‘deceptive’ practices

Tesla has been threatened by the Competition, Consumer Affairs, and Fraud Control Office in France after the agency said it is participating in “deceptive business practices” related to its semi-autonomous driving capabilities.

Published

1 hour ago

June 24, 2025

Joey Klender

(Credit: Tesla)

Investigators in the government office said that Tesla has engaged in deceptive commercial practices over the capabilities of its cars. In the past, other agencies and even some skeptics have said that Tesla’s use of the phrases “Autopilot” and “Full Self-Driving” is inaccurate in terms of its capabilities.

Tesla Autopilot gets stone cast in its direction by Pete Buttigieg

However, Tesla has been transparent with consumers and regulatory agencies that its cars are not yet fully autonomous, meaning drivers could sleep, play on their phones, or pay no attention to the road. The car would take care of steering and speed.

Tesla has never maintained that its cars are capable of this. On its website and in its Owner’s Manuals, it says that drivers are required to pay attention and be prepared to take over in case of an emergency.

The office began the investigation back in 2023 and, this week, ordered Tesla to comply with regulations within the next four months. If it does not, it will face fines of €50,000 per day.

This is not the first time Tesla has had some pushback from regulators regarding the naming of its semi-autonomous driving platforms. Back in 2023, then Secretary of Transportation in the United States, Pete Buttigieg, said the name “Autopilot” was not accurate because it is still a hands-on system:

“I don’t think that something should be called, for example, an Autopilot, when the fine print says you need to have your hands on the wheel and eyes on the road at all times. We call balls and strikes. I view it as something where it’s very important to be very objective. But anytime a company does something wrong or a vehicle needs to be recalled or a design isn’t safe, we’re going to be there.”

He then said that Autopilot and its interaction with the person operating the car is a “real concern.”

Elon Musk

Tesla Robotaxi launch draws attention from regulators, mainstream media milks it

The Tesla Robotaxi launch has resulted in some questions from the NHTSA, a typical thing for early launches. Media is milking it as a huge thing.

Published

3 hours ago

June 24, 2025

Joey Klender

Credit: @AdanGuajardo/X

Tesla launched its Robotaxi platform in a limited capacity earlier this week in Austin, Texas, and after hundreds of rides have been taken, some instances have caught the attention of the National Highway Traffic Safety Administration (NHTSA).

However, the information the NHTSA is requesting is routine and totally normal for the early stages of a rollout of this magnitude. But that did not stop mainstream media from milking it into something controversial, when it really is not.

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

Various outlets reported on the NHTSA’s request to Tesla for additional information regarding things seen in videos online.

The NHTSA said it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” Bloomberg initially reported on the NHTSA’s request for information.

The thing is, the NHTSA has often reached out to companies right after it launches a driverless vehicle service. Both Waymo and GM’s Cruise, as well as Amazon’s Zoox, have had the NHTSA reach out to them regarding the launch of their driverless ride-hailing services.

The headlines for Tesla are significantly different:

Reviews from riders in Austin have stated the Robotaxi platform is “smooth” and “comfortable,” with many ranting and raving about the advantages the new ride-hailing service has over others. Not only is it being monitored by a safety monitor in the passenger seat, but there are also other things that make it unique.

One of the most notable is that your Robotaxi will automatically sync entertainment and streaming settings.

The sensationalism that the media tends to use with Tesla is a big reason the company did not invite mainstream outlets to the event. Instead, reporters were seen waiting for Early Access invitees to exit their cars to ask them questions.

Many denied the inquiries:

“Can I talk to you, I’m with Reuters”

> No

🤣🤣 @BeardedTesla @SawyerMerritt pic.twitter.com/jGUdakGzx1

— Robin (@xdNiBoR) June 22, 2025

Elon Musk responded to that video by saying “Lmao,” an acronym for “laughing my ass off.”

News

Starlink Cellular’s T-Mobile service to grow with third-party app data

From Oct 2025, T-Satellite will enable third-party apps in dead zones! WhatsApp, X, AccuWeather + more coming soon.

Published

13 hours ago

June 23, 2025

Maria Merano

(Credit: T-Mobile)

Starlink Cellular’s T-Mobile service will expand with third-party app data support starting in October, enhancing connectivity in cellular dead zones.

T-Mobile’s T-Satellite, supported by Starlink, launches officially on July 23. Following its launch, T-Mobile’s Starlink Cellular service will enable data access for third-party apps like WhatsApp, X, Google, Apple, AccuWeather, and AllTrails on October 1, 2025.

T-Mobile’s Starlink Cellular is currently in free beta. T-Satellite will add MMS support for Android phones on July 23, with iPhone support to follow. MMS support allows users to send images and audio clips alongside texts. By October, T-Mobile will extend emergency texting to all mobile users with compatible phones, beyond just T-Mobile customers, building on its existing 911 texting capability. The carrier also provides developer tools to help app makers integrate their software with T-Satellite’s data service, with plans to grow the supported app list.

T-Mobile announced these updates during an event celebrating an Ookla award naming it the best U.S. phone network, a remarkable turnaround from its last-place ranking a decade ago.

“We not only dream about going from worst to best, we actually do it. We’re a good two years ahead of Verizon and AT&T, and I believe that lead is going to grow,” said T-Mobile’s Chief Operating Officer Srini Gopalan.

T-Mobile cuts Starlink Cellular service price, eyes broader access

T-Mobile unveiled two promotions for its Starlink Cellular services to attract new subscribers. A free DoorDash DashPass membership, valued at $10/month, will be included with popular plans like Experience Beyond and Experience More, offering reduced delivery and service fees. Meanwhile, the Easy Upgrade promotion targets Verizon customers by paying off their phone balances and providing flagship devices like the iPhone 16, Galaxy S25, or Pixel 9.

T-Mobile’s collaboration with SpaceX’s Starlink Cellular leverages orbiting satellites to deliver connectivity where traditional networks fail, particularly in remote areas. Supporting third-party apps underscores T-Mobile’s commitment to enhancing user experiences through innovative partnerships. As T-Satellite’s capabilities grow, including broader app integration and emergency access, T-Mobile is poised to strengthen its lead in the U.S. wireless market.

By combining Starlink’s satellite technology with strategic promotions, T-Mobile is redefining mobile connectivity. The upcoming third-party app data support and official T-Satellite launch mark a significant step toward seamless communication, positioning T-Mobile as a trailblazer in next-generation wireless services.