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Volkswagen AG is selling Bugatti to Rimac so they can focus on EV development

The Rimac C_Two (Credit: Rimac)

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Bugatti is one of the most well-known supercar manufacturers globally. Still, they may be unloaded by parent company VW Group to Rimac, a Croatian electromobility company with a reputation for fast cars and innovation.

A report from the UK branch of Car Magazine reported early Thursday morning that VW Group, who owns Bugatti’s operations, is prepared to offload the supercar company to Rimac.

Car Magazine said:

“Bugatti – the luxury brand best known for today’s 16-cylinder hypercars and its pre-WWII automotive masterpieces – will likely be transferred to Rimac via Porsche, in exchange for a bigger share in Europe’s answer to Tesla.”

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According to sources, Volkswagen AG executives have already approved a deal, but ink has yet to be put onto a piece of paper that will finalize the deal.

Volkswagen no longer has an interest in spending massive amounts of money on “hobby brands” like Bugatti, according to some sources. Bugatti, while a notable automotive company with a notorious reputation for creating some of the fastest cars the Earth has ever seen, is not an “everyday” entity. The company’s products are usually reserved for those with large bank accounts. With expensive cars comes expensive Research and Development, which generally drives up the cost of a vehicle.

Money is being set aside for consumer products that will drive the future of Volkswagen AG’s brands. All funding is being focused on developing electrified models, along with digitalization and autonomous driving technologies.

Volkswagen’s long list of brands are all working to develop fleets of fully-electric vehicles that can be used as daily drivers. The focus, at the moment, is saving its time, energy, and money into developing functional electric cars through MEB software. Volkswagen’s ID.3 and ID.4 will be the German automaker’s first two attempts at creating an EV that uses the MEB infrastructure, and it is proving to be more difficult than anticipated.

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The Rimac C_Two (Credit: Rimac)

Porsche, which is owned by Volkswagen AG, has an over 15 percent stake in Rimac. Volkswagen is using Porsche as a mutually beneficial party in the deal.

Current executives of Bugatti, like CEO Stephan Winkelmann, are expected not to remain a part of the carmaker if the deal is signed. Car Magazine reached out to Bugatti executives, but they declined to comment. However, they did indicate that Bugatti had been “a positive contribution to the Group for the past two years.” Additionally, they stated that the brand was “on track to exceed 2019’s sales.”

Volkswagen AG’s focus on consumer products instead of highly-priced supercars shows its primary focus is expanding its presence of electric vehicles. Mass-market cars will allow the company to grow across the globe as affordable electric models will be released for years to come. While supercars are fast, fun, and crucial to a brand’s image of exclusivity, they are not an essential part of the early growth that automakers need when transitioning to electrification.

Down the road, perhaps Volkswagen could revisit supercars that are fueled by electric powertrains. Now, the focus remains on mass-market automobiles.

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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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Tesla Model Y L gets biggest hint yet that it’s coming to the U.S.

Over the past week, a noticeable wave of American Tesla influencers descended on China and Australia, each posting in-depth YouTube reviews of the Model Y L within days of one another.

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Credit: Tesla China

The Tesla Model Y L is perhaps the most wanted vehicle in the company’s lineup in the United States, especially now that it is void of a true family vehicle with the removal of the Model X.

In China, Tesla currently offers a longer, more family-friendly version of the Model Y, known as the Model Y L, which is longer in terms of its wheelbase and larger in terms of interior space, making it the perfect option for those with a need for a tad more room than what the all-electric crossover offers in its Standard, Premium, and Performance trims.

However, there seems to be a hint that the Model Y L could be on its way to the United States. Over the past week, a noticeable wave of American Tesla influencers descended on China and Australia, each posting in-depth YouTube reviews of the Model Y L within days of one another:

The timing has sparked some intense speculation as to whether Tesla is quietly preparing to bring the long-wheelbase, three-row family SUV to North America after months of requests from fans.

The Model Y L stretches the wheelbase by about five inches compared to the standard Model Y.

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This delivers dramatically more rear legroom, optional captain’s chairs in the second row, and a true six- or seven-seat configuration ideal for growing families. Reviewers praise its refined ride, upgraded interior features like a rear touchscreen and premium audio, and competitive range—up to roughly 466 miles in some configurations.

Many observers see the coordinated influencer trip as more than a coincidence. Tesla China appears to have hosted the group, possibly tied to the Beijing Auto Show, giving U.S.-focused creators early access to hands-on footage aimed squarely at North American audiences.

Tesla Model Y lineup expansion signals an uncomfortable reality for consumers

Tesla watchers are quick to point out this isn’t the first time such a pattern has emerged.

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Just months earlier, American influencers were similarly invited to China to test-drive the refreshed Model Y Performance. Those videos dropped in the lead-up to the variant’s U.S. rollout, generating exactly the kind of pre-launch hype that helped smooth its September arrival in American showrooms.

The parallel is obviously hard to ignore, as Tesla has used overseas influencer trips before as a low-key way to build anticipation without formal announcements. With the Model Y L potentially hitting the U.S. market late this year, according to CEO Elon Musk, the timing would make sense.

Tesla Model Y L might not come to the U.S., and it’s a missed opportunity

Of course, it could still be coincidental. Tesla regularly invites creators to its Shanghai factory and events for broader promotional purposes, and the Model Y L has been on sale in China for some time. No official word has come from Tesla or Elon Musk about U.S. availability, pricing, or timing.

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Import tariffs, regulatory hurdles, and production priorities at Fremont or the new Mexican Gigafactory could still delay or alter any stateside plans.

Even so, the buzz is real. U.S. families have long asked for a more spacious, three-row Tesla SUV that doesn’t require stepping up to the larger Model X.

If the influencer campaign is any indication, the Model Y L—or a close North American cousin—could finally answer that call. For now, American Tesla fans are watching closely and wondering whether this latest China trip is just good content… or the opening act for something much bigger stateside.

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Tesla begins probing owners on FSD’s navigation errors with small but mighty change

Previously lumped under “Other,” these incidents made it harder for Tesla’s AI team to isolate and prioritize map-related issues in their reinforcement learning models. There was a lot of disagreement on how certain interventions should be reported.

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Tesla has started probing owners on how often its Full Self-Driving suite has Navigation errors with a small but mighty change last night.

In its latest Software Update, which is Version 2026.2.9.9 featuring Full Self-Driving (Supervised) v14.3.2, Tesla has introduced a targeted improvement to how owners will report interventions.

With the initial rollout of v14.3.2, Tesla introduced a new Intervention Menu that appears when a disengagement occurs. It allowed owners to choose from four different categories: Preference, Comfort, Critical, or Other.

Tesla has voided the Other option and replaced it with a new “Navigation” choice, which seems much more ideal given the complaints owners have had about navigation. This seemingly minor UI tweak, rolled out widely in recent days, marks another step in Tesla’s ongoing effort to refine its autonomous driving stack through precise, crowdsourced data.

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Tesla made this change in direct response to longstanding community feedback. For years, FSD users have noted that navigation errors—such as incorrect speed limits, suboptimal routes, or directing the vehicle to a building’s rear entrance instead of the main one—frequently force interventions.

Previously lumped under “Other,” these incidents made it harder for Tesla’s AI team to isolate and prioritize map-related issues in their reinforcement learning models. There was a lot of disagreement on how certain interventions should be reported:

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By adding a dedicated “Navigation” label, the company can now tag disengagements more accurately, feeding cleaner data into its neural networks. This supports faster iteration on routing algorithms, map accuracy, and intent-aware navigation.

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Community consensus around Tesla’s navigation system has been consistent and candid. While the end-to-end AI driving behavior in v14.x earns widespread acclaim for smoothness and safety, navigation remains FSD’s clearest Achilles’ heel.

Owners frequently cite outdated map data, failure to learn from repeated corrections, and routing decisions that feel less intuitive than Google Maps or Apple Maps. Common complaints include phantom speed-limit changes, inefficient local roads, and poor point-of-interest handling.

Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much

Many drivers report intervening on navigation far more often than on core driving maneuvers, with some estimating it accounts for the majority of disengagements outside of edge cases.

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Long-term users note that the same mapping glitches persist across years and software versions, despite thousands of collective miles of feedback. Yet the addition of the “Navigation” option has been met with optimism. It signals Tesla’s commitment to data-driven progress and suggests navigation improvements could arrive sooner.

For a community that already logs millions of FSD miles monthly, this small change could unlock meaningful gains in reliability and user trust—potentially accelerating the path to unsupervised autonomy.

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Tesla expands Robotaxi in a way that was long anticipated

Instead, it has to do with the consumer base it offers Robotaxi to, because it has not offered it to everyone in the past.

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Credit: Grok Imagine

Tesla has expanded Robotaxi in a way that was long anticipated, and it does not have to do with a new, larger geofence in a city where it already offered its partially autonomous ride-hailing suite, or a new city altogether.

Instead, it has to do with the consumer base it offers Robotaxi to, because it has not offered it to everyone in the past.

Tesla has taken a major step forward in its autonomous ride-hailing ambitions with the official launch of the Tesla Robotaxi app for Android users. Released on the Google Play Store on April 24. Titled simply “Tesla Robotaxi,” the app is now available to download directly from Tesla.

This rollout fulfills a long-anticipated expansion that opens the service to hundreds of millions of Android smartphone users who were previously unable to access it on iOS alone.

The app delivers a streamlined, driverless ride experience powered by Tesla’s automated driving technology.

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Users sign in with a Tesla Account, view the current service area map within the app, enter a destination, and receive an estimated fare and arrival time before confirming the ride. When a Model Y from the Robotaxi fleet arrives, riders confirm the license plate, enter the vehicle, fasten their seatbelt, and tap “Start Ride” on either the app or the vehicle’s touchscreen.

During the trip, passengers have access to all the same controls that iOS users do, and can adjust climate settings, seat positions, and music while tracking progress on an in-app map. The interface also allows drop-off changes or support requests if needed. After the ride, users exit, close the doors, and submit feedback.

This Android availability directly broadens the rider base for Robotaxi in its initial service areas. Unfortunately, Android users are used to being subject to delayed launches of new features available to Tesla owners.

By removing the iOS-only barrier, Tesla instantly expands the addressable market, enabling far more people to summon and use the autonomous vehicles already operating on public roads.

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The move is a foundational requirement for scaling ride volume and gathering the real-world data needed to refine the unsupervised Full Self-Driving system that powers every trip.

For the Robotaxi program itself, the launch signals steady operational progress. It prepares the service for higher utilization rates as the fleet grows and supports the transition from limited early deployments to a more robust network.

Tesla expands Unsupervised Robotaxi service to two new cities

Tesla has indicated that users outside current service areas can sign up at the company’s website for future notifications, pointing to a deliberate, phased geographic rollout.

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Looking ahead, the company plans to incorporate Cybercab vehicles to increase fleet capacity and efficiency while continuing to expand service territories. With the Android app now live, Tesla has removed a key adoption hurdle and positioned Robotaxi for the next phase of growth in autonomous urban transportation.

The infrastructure is now in place to support significantly larger rider demand as production and deployment accelerate.

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