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Tesla’s software and full self-driving infrastructure has Volkswagen ‘worried’
Volkswagen CEO Herbert Diess is worried about Tesla’s lead in self-driving and software.
In an internal Volkswagen e-mail that leaked this past weekend, Diess discussed Tesla’s impressive system for improving its vehicle’s self-driving capability. Diess seemed to admit that Tesla’s full self-driving infrastructure is far superior to any other mainstream automaker today.
Diess said:
“What worries me the most is the capabilities in the assistance systems. 500,000 Teslas function as a neural network that continuously collects data and provides the customer a new driving experience every 14 days with improved properties. No other automobile manufacturer can do that today.”
Diess also spoke about Tesla’s software, which is arguably the best in the market today. The CEO stated that Tesla’s system for updating vehicles and providing drivers with new experiences is “continuous.” Interestingly enough, software is something that Volkswagen is having difficulty with in its ID.3 electric cars.
The leak was obtained by German car magazine Automobilwoche on Saturday, April 25.
This is not the first time Volkswagen has admitted Tesla’s lead in the EV segment. Volkswagen has previously stated that Tesla holds a sizable lead in the electric transportation sector. In mid-March, Volkswagen board member Thomas Ulbrich said that the Silicon Valley-based electric carmaker held a ten-year lead in the industry. “Tesla is an impressive manufacturer. It is a motivator for us. Tesla has ten years more experience. But we are very quick in catching up,” Ulbrich said.
However, there is mutual respect between the two automakers. It is evident based on comments from both company’s CEOs.
Herbert Diess and Elon Musk have shown genuine respect for each other for a long time. Diess has always been very respectful to Musk, crediting him for bringing the electric vehicle infrastructure to the mainstream and providing consumers with an environmentally friendly option for transportation.
At the Golden Steering Wheel Awards in November 2019, Musk and Diess traded complements with each other. After the Tesla Model 3 took home an award at the event, Diess congratulated Musk and recognized his attempts to bring the world away from environmentally-harming transportation.
“First of all, I really wanted to congratulate you, great achievement, I know all of this competition here in Germany, this award, its a great achievement. We know each other; we don’t meet so often, though. I would say that we share a vision, which is that we only can achieve the CO2 targets and reduce carbon emissions through electric cars,” Diess said.
Volkswagen has a tainted past due to the Dieselgate scandal, which revealed that the German automaker was placing cheat devices in its vehicles to pass standard emissions testing. However, the company has made many attempts to clear its name, and Diess is undoubtedly a big part of that.
In the past, Volkswagen has outlined its $33 billion plan to begin a transition to electrification. The German automaker certainly seems to plan to put its emissions scandal in the past, and Diess maintains that Musk is a big reason for its decision to move toward more sustainable vehicles. “I thank you for pioneering, for pulling us, for pushing us. I think really Elon is the innovator, which is driving us along,” Diess said.
Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.
The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.
Our Bay Area rideshare service now goes to SFO ✈️
— Tesla AI (@Tesla_AI) July 21, 2026
Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.
The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.
UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch
This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.
The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.
Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.
The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.
Tesla has officially revealed its 2026 Summer Update, which comes with a variety of crazy new features, including Navigation fixes that owners have been wanting for months.
Tesla routinely releases a larger update with the Spring, Summer, Fall, and Winter updates, where it ships a variety of new features, bug fixes, and other additions to customer cars.
The 2026 Spring Update featured things like “Hey Grok” voice assistance, a redesigned self-driving app, Unreal Engine visual upgrades, and more.
🚨 TESLA’S SUMMER UPDATE FOR 2026 IS HERE:
Featuring:
✅ Self-Driving Stats in Mobile App
✅ Caraoke with Scoring
✅ Automatic Navigation
✅ Preferred Routes
✅ Set Arrival Energy from Mobile App
✅ Send Custom Wraps from Mobile App
✅ Rear Display Lock
✅ Other Improvements
🔌… https://t.co/C9IW3egEhH— TESLARATI (@Teslarati) July 21, 2026
Tesla’s Summer Release has about ten new features; we’ll show you each and detail them below:
New Grok Voice Commands
“Grok can now make phone calls, search and play music, adjust climate, open the glovebox, and answer questions about your Tesla.”
Self-Driving Stats in Mobile App
“View and share self-driving stats from the mobile app.”
Caraoke With Scoring
“Caraoke now scores your singing while in Park. High scores are saved to your Tesla profile.”
Automatic Navigation
“Automatic Navigation now adapts to your routine.
In addition to Home, Work, and upcoming calendar events, your vehicle can now suggest and route to places you visit regularly – like a school drop-off on the way to work, or the gym on the way home.”
Preferred Routes
“For a more personalized experience, navigation now prioritizes routes that you’ve taken before”
Set Arrival Energy from Mobile App
“Set your desired Arrival Energy from your phone.”
Send Custom Wraps from Mobile App
“Skip the USB drive and upload a custom wrap of your car from the mobile app. Instructions for creating a custom wrap here: https://github.com/teslamotors/custom-wraps.”
Rear Display Lock
“Kids can watch content on the rear screen, but only the front row can control it through the rear screen app.”
Other Improvements
- Find Superchargers by name when searching for a destination
- Add Apple Music songs to queue from search and artist page
- Set your preferred zoom level for the Self-Driving visualization
- Intro animations for new Model 3 and Y
Tesla’s reason for Starlink integration on Cybercab might surprise you, as the company’s Head of AI, Ashok Elluswamy, finally shed some light on the reason they are putting a satellite internet terminal on its ride-hailing-geared vehicle.
On Monday, Tesla officially confirmed that it would integrate Starlink V5 terminals into Cybercab vehicles, something many Tesla fans had figured the company would do, as the vehicle is primarily geared toward giving rides without any passenger intervention.
Starlink V5 directly integrated in Cybercab pic.twitter.com/FxzTtzjB6I
— Tesla (@Tesla) July 20, 2026
The ability to access the internet would allow riders to work or play in the car with their devices. It seemed like a more-than-reasonable feature to add to the Cybercab, which made its way off the production lines for the first time earlier this year.
Tesla reveals first vehicle model to receive Starlink integration
However, the move is not for the rider, as Elluswamy confirmed on Monday night. Instead, it’s actually for Tesla to be able to have a constant connection to the cars in the Robotaxi fleet so it can troubleshoot issues, contact riders, or resolve other issues.
Elluswamy said:
“It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.”
It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.
— Ashok Elluswamy (@aelluswamy) July 20, 2026
Many initially assumed the option of constant connectivity would be enabled on the Cybercab for passenger entertainment or work. With the Cybercab, passengers won’t be doing anything but enjoying the ride, so it seemed more than logical that they would be hanging out with Starlink internet access as an amenity.
However, Tesla’s primary concern with Robotaxi is safety, and nailing these first unsupervised rides is a crucial step to setting a good narrative on how effective driverless transportation can be.
Being able to get in touch with passengers or a vehicle if something is wrong is a crucial part of the overall experience, and preventative measures are being taken by Tesla to ensure a smooth process, even in the worst-case.
Tesla expands ridesharing service in California to new hotspot
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
