News
Tesla and Volkswagen: from fierce competitors to unlikely allies
Tesla and Volkswagen have established themselves as unlikely allies in the world of turning vehicles toward electrification. However, the two companies did not always see eye to eye, but the tides have certainly changed. Evidence of this comes just a day after Elon Musk took an unexpected stop in Western Germany to see Volkswagen Chairman Herbert Diess.
Years ago, Volkswagen and Tesla were sitting at opposite ends of the spectrum. One company was a well-established marvel of German automotive manufacturing, while the other was struggling to rally enough capital to keep its own production efforts moving forward.
However, 2020 has given the two companies and effective dose of the “Freaky Friday” treatment, where the former automaker is struggling to keep functioning EVs on the road. Meanwhile, the latter is surging forward the charge to electrification and maintains a healthy lead over other companies that are attempting to follow in their steps.
But from 2008 to 2015, Volkswagen was far from ever being considered a Tesla ally. The German automaker was violating the EPA’s Clean Air Act by knowingly placing cheat devices in their car’s emissions systems. The scandal, known as Dieselgate, set a semi-permanent mark in the minds of the environmentally-conscious.
Many swore never to consider repurchasing a Volkswagen vehicle, but the company has won some prominent figures in the EV community. Most notably, Elon Musk. But the relationship wasn’t always healthy.
Musk was critical of a conspiracy that a Volkswagen employee was criticizing Tesla through a fake name. According to numerous sources, Diess had the situation handled, but the drama between the two companies didn’t necessarily end there.
Dieselgate was still slightly in the head of Musk. The CEO mentioned that Tesla’s HEPA grade filter was needed while sitting in close traffic because toxic tailpipe emissions could affect the air quality of those who occupy vehicles that are around. “Good thing gas/diesel carmakers didn’t cheat on their emissions or we’d be in real trouble,” Musk joked, indirectly taking a jab at Volkswagen’s wrongdoing.
In close traffic, poisonous gas spewing from the car in front of you goes straight into your AC intake. Good thing gas/diesel carmakers didn’t cheat on their emissions or we’d be in real trouble 😅
— Elon Musk (@elonmusk) September 4, 2019
However, Musk has recognized that Diess is an ally and is driving Volkswagen toward electrification. The Tesla CEO even said that Diess is “doing more than any big carmaker to go electric. For what it’s worth, he has my support.”
Musk and Diess then appeared on stage together at the Golden Steering Wheel Awards in Berlin last November, trading compliments and smiling from ear to ear with encouragement. The two had shown their business ventures had resulted in a healthy friendship, and Musk even announced that Tesla would be bringing a new facility to Berlin on the same evening.
In early September 2020, Musk flew to Germany to conduct business. His final stop on his quick tour of the country was to pay his friend Diess a brief visit, where Musk drove the ID.3 from Volkswagen and took a peek at the Model Y’s competition in the ID.4. With Giga Berlin moving along swiftly and Tesla intending to start manufacturing vehicles in July 2021, it would seem that Diess would want to keep a competitor at bay and not reveal his plans for an electric car. But he was more than willing to show Musk around. Why?
While company collaborations are rare in the automotive sector, a Tesla and Volkswagen one wouldn’t be a far-fetched idea. The two companies have executives that are more than willing to show their products to each other, and the two could also help each other in improving their businesses. Volkswagen has been building cars in Germany since 1937. Eighty-five years of market data could help Tesla make an enormous impact on the German market, and Volkswagen could undoubtedly share some hints if Tesla required them.
Meanwhile, Volkswagen has had a very public problem with its MEB infrastructure within the ID family of cars. Tesla, on the other hand, has established itself as the most prominent figure in terms of software and EV tech, and it could always lend a helping hand to Volkswagen, especially considering Musk is more than willing to help electrified fleets come to life. “Tesla is open to licensing software and supplying powertrains & batteries,” Musk said to Teslarati In July. “We’re just trying to accelerate sustainable energy, not crush competitors!
Whether the two companies decide to help, each other remains to be seen. But, the partnership will help both Tesla and Volkswagen out, and in the big picture, enable the acceleration to sustainable energy to occur faster.
Tesla has expanded the footprint of a massive safety feature worldwide with a recent Software Update labeled as 2026.20.6. The expansion of the “Blind Spot Warning While Parked” feature represents the more widespread availability of the feature, which aims to prevent “dooring.”
Dooring is when a driver or passenger opens a car door into the path of an oncoming road user, usually a cyclist or motorcyclist. It is among the most common types of cycling accidents, the League of American Bicyclists says.
For this reason, Tesla created a feature that warns occupants not to open the door because an object is approaching. The feature will sound a chime, and it will also delay the opening of the door to prevent an incident.
The release notes state (via Not a Tesla App):
“If you attempt to open a door while an approaching object is detected in your blind spot (for example, a bicyclist approaching from behind) a chime sounds, and your door will not open upon initial button press. Wait a short time and press the button a second time to override the warning.”
Tesla initially rolled out this feature back in 2024 with the Model 3 “Highland.” However, it remained with the Model 3 exclusively for over a year; that was until Tesla added it to the Cybertruck this past Spring.
Now, it is making its way to the new Model Y, 2021 and newer Model S, and 2021 or newer Model X.
The prevention of dooring incidents could eliminate many injuries to cyclists, especially in an urban setting. Dooring accounts for 10-20 percent of bike-related crashes in major cities, and over 17,000 dooring-related incidents were treated in the U.S. over the course of a decade. These usually involve fractures, contusions, and head trauma.
Tesla confirmed this morning that it has sent the first production units, manufactured with no steering wheel or pedals, to on-road testing in Austin, sharing video of the first rides with no human controls.
The lack of steering wheels and pedals in the Cybercab aligns with Tesla’s self-certification of Robotaxi as Level 4 SAE, a platform it plans to make widespread through internal vehicles and customer-owned cars that will operate and generate revenue for individuals.
The start of these engineering tests is a major signal for Tesla, which plans to bring driverless, wheel-less, and pedal-less Cybercabs to market in the coming months. With production already well underway at Gigafactory Texas, where the Cybercab is built, there is some inclination to believe the first public rides could happen sooner rather than later.
Engineering tests of the first production Cybercab have begun in Austin pic.twitter.com/fk3KQvcE8a
— Tesla (@Tesla) June 30, 2026
Tesla’s engineering tests will put the Cybercab in real-world scenarios, testing not only the hardware, but more importantly, the software that drives the car around Austin with nobody supervising it within the car.
This is perhaps the biggest part of the internal testing process, especially prior to allowing regular, everyday people to hail the Cybercab for an autonomous ride. These early rides serve as a true benchmark for Tesla: How many rides can it achieve safely? How many miles did it travel consecutively without needing an intervention? What scenarios challenge the Full Self-Driving suite the most?
The proper precautions have already been put into place as well, as Tesla released the First Responders Guide to Cybercab over the weekend, ensuring that emergency services have 24/7 access to Robotaxi Assistance, as well as other boundaries, such as Geofencing features that can be used to redirect autonomous vehicle traffic due to accidents, road closures, construction, or maintenance.
Cybercab seems genuinely close to being added to the Robotaxi fleet in Austin, but Tesla has prioritized safety throughout this entire process. Therefore, we think it could be months before it truly starts giving rides to the public. People have been frustrated with this, but Robotaxi in Austin has a tremendous safety record so far, so the slow rollout has kept people safe and accidents to a minimum.
The most important thing is that Tesla continues to show consistent progress in the Cybercab’s ramp-up toward fleet addition. A few weeks back, we saw the EPA reward the Cybercab a Certificate of Conformity, allowing it to enter the stream of commerce. Then, we saw Tesla add decals, signaling that it was likely about to start testing it publicly. That has now happened.
The next big move will be the announcement of the first rides, so this Summer should be filled with anticipation.
For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.
Would you buy a Tesla phone ? pic.twitter.com/aaTwvvIJit
— Tesla Owners Silicon Valley (@teslaownersSV) October 6, 2023
Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.
It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.
Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.
The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.
Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.
The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.
SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.
There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.
The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.
Tesla expands massive safety feature worldwide in latest update
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
