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Tesla’s software and full self-driving infrastructure has Volkswagen ‘worried’

Tesla CEO Elon Musk and Volkswagen CEO Herbert Diess exchange compliments at an award ceremony. (Credit: YouTube/AUTO BILD)

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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.”

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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.

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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.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Brazil Supreme Court orders Elon Musk and X investigation closed

The decision was issued by Supreme Court Justice Alexandre de Moraes following a recommendation from Brazil’s Prosecutor-General Paulo Gonet.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Brazil’s Supreme Federal Court has ordered the closure of an investigation involving Elon Musk and social media platform X. The inquiry had been pending for about two years and examined whether the platform was used to coordinate attacks against members of the judiciary.

The decision was issued by Supreme Court Justice Alexandre de Moraes following a recommendation from Brazil’s Prosecutor-General Paulo Gonet.

According to a report from Agencia Brasil, the investigation conducted by the Federal Police did not find evidence that X deliberately attempted to attack the judiciary or circumvent court orders.

Prosecutor-General Paulo Gonet concluded that the irregularities identified during the probe did not indicate fraudulent intent.

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Justice Moraes accepted the prosecutor’s recommendation and ruled that the investigation should be closed. Under the ruling, the case will remain closed unless new evidence emerges.

The inquiry stemmed from concerns that content on X may have enabled online attacks against Supreme Court justices or violated rulings requiring the suspension of certain accounts under investigation.

Justice Moraes had previously taken several enforcement actions related to the platform during the broader dispute involving social media regulation in Brazil.

These included ordering a nationwide block of the platform, freezing Starlink accounts, and imposing fines on X totaling about $5.2 million. Authorities also froze financial assets linked to X and SpaceX through Starlink to collect unpaid penalties and seized roughly $3.3 million from the companies’ accounts.

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Moraes also imposed daily fines of up to R$5 million, about $920,000, for alleged evasion of the X ban and established penalties of R$50,000 per day for VPN users who attempted to bypass the restriction.

Brazil remains an important market for X, with roughly 17 million users, making it one of the platform’s larger user bases globally.

The country is also a major market for Starlink, SpaceX’s satellite internet service, which has surpassed one million subscribers in Brazil.

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FCC chair criticizes Amazon over opposition to SpaceX satellite plan

Carr made the remarks in a post on social media platform X.

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Credit: @SecWar/X

U.S. Federal Communications Commission (FCC) Chairman Brendan Carr criticized Amazon after the company opposed SpaceX’s proposal to launch a large satellite constellation that could function as an orbital data center network.

Carr made the remarks in a post on social media platform X.

Amazon recently urged the FCC to reject SpaceX’s application to deploy a constellation of up to 1 million low Earth orbit satellites that could serve as artificial intelligence data centers in space.

The company described the proposal as a “lofty ambition rather than a real plan,” arguing that SpaceX had not provided sufficient details about how the system would operate.

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Carr responded by pointing to Amazon’s own satellite deployment progress.

“Amazon should focus on the fact that it will fall roughly 1,000 satellites short of meeting its upcoming deployment milestone, rather than spending their time and resources filing petitions against companies that are putting thousands of satellites in orbit,” Carr wrote on X.

Amazon has declined to comment on the statement.

Amazon has been working to deploy its Project Kuiper satellite network, which is intended to compete with SpaceX’s Starlink service. The company has invested more than $10 billion in the program and has launched more than 200 satellites since April of last year.

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Amazon has also asked the FCC for a 24-month extension, until July 2028, to meet a requirement to deploy roughly 1,600 satellites by July 2026, as noted in a CNBC report.

SpaceX’s Starlink network currently has nearly 10,000 satellites in orbit and serves roughly 10 million customers. The FCC has also authorized SpaceX to deploy 7,500 additional satellites as the company continues expanding its global satellite internet network.

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Energy

Tesla Energy gains UK license to sell electricity to homes and businesses

The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.

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Credit: Tesla Energy/X

Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.

The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.

According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.

The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.

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Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.

Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.

Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.

The new UK license arrives as Tesla continues expanding its global energy business.

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Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.

The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.

At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.

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