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Volkswagen wants to build ‘a global battery champion’

Credit: Volkswagen Group

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Volkswagen announced its plans to make its battery manufacturing subsidiary, PowerCo, a “global battery champion.”

Despite Volkswagen’s arguably conservative approach to electrification in its automotive brands, its presentation regarding its battery manufacturing sub-brand PowerCo was anything but. Volkswagen has ambitious goals for the fledgling company that only started earlier this year. PowerCo aims to achieve these goals quickly “through low complexity and standardization.”

For some background, the PowerCo brand only started earlier this year when it broke ground on its first battery manufacturing facility in Germany. The sizable factory has a production capacity of 40GWh, but its real strength is in its standardization. Volkswagen has standardized its battery design (that will be used in VW Group products) and standardized the factory where the batteries will be produced, reducing construction costs and startup times, claims Volkswagen.

But standardization is only one of the advantages Volkswagen believes PowerCo holds over other battery manufacturers. Foremost, Volkswagen was quick to point out that the new company would have access to one of the world’s largest customers of lithium batteries: VW Group. The German auto giant estimates it will eventually require up to 240GWh of battery manufacturing per year.

The final advantage that Volkswagen announced was vertical integration, which it is willing to go the extra mile to achieve. Not only will PowerCo work to establish lithium refining capabilities, but the company will also establish its own lithium mines. A market that many automakers, including Tesla, have been hesitant to enter.

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After presenting these advantages, Volkswagen revealed plans for the future of PowerCo. The German battery plant (currently under construction) will enter production in 2025. Following it, the second plant in Valencia, Spain, will begin production in 2026. Thereafter, PowerCo will look to establish a standardized battery manufacturing facility in North America and then three more facilities in Europe from 2027 onward.

PowerCo will also be expanding to serve non-VW Group brands as well as non-automotive use cases, including but not limited to; maritime, energy storage, and train manufacturing customers.

To conclude, Volkswagen focused on the sustainability of the up-and-coming PowerCo. By working with Volkswagen Group brands, PowerCo will establish a circular ecosystem of batteries, hopefully reducing both waste and the cost of raw material extraction.

It is unclear how this shift to self-reliance will affect current Volkswagen battery suppliers like Northvolt. What is more evident is that battery manufacturing capabilities are becoming a significant part of many different automotive brands. It will be interesting to see how the industry reacts to the shift in the coming years.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla makes a change to its ‘American Heroes’ $500 discount

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(Credit: Tesla)

Tesla has made a change to its “American Heroes” discount, which takes $500 off the price of a vehicle purchase if you work in a certain field.

Tesla first launched the American Heroes discount earlier this year on May 22, 2025, and it initially started as a $1,000 deduction on the price of any of the company’s vehicles.

It formerly allowed military veterans, retirees, active-duty members, their spouses, first responders, teachers, and students. It utilized ID.me to verify their occupation.

However, Tesla has added a few groups of workers to this discount, according to language on its website:

“Tesla vehicles are perfect for everyday American heroes. Offer available to verified military veterans, retirees, active-duty members, their spouses, surviving spouses, first responders, medical providers, nurses, students and teachers verified through ID.me1. Adjustments applied when you place your order after verification. Eligibility criteria detailed at ID.me.”

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The discount applies to all five Tesla vehicles, so it is not restricted to just the S3XY lineup.

The American Heroes discount is one of the several offers and incentives that Tesla offers on its vehicles. Currently, it is one of four offers Tesla has on its vehicles, with the others being:

  • Full Self-Driving (Supervised) Trial: Three-month trial for those who use a referral code to buy a vehicle.
  • Premium Connectivity Trial: One-month free
  • Financing Offers: Tesla has various financing offers, including a 3.99% APR with $5,000 on Model S and Model X orders in the U.S.

These incentives help drive sales, but they also show Tesla’s appreciation for those who work in challenging fields. The discount has no expiration, as of now, but with this recent addition, Tesla likely has no plans to eliminate the program.

Tesla has occasionally launched discounts for military members near the 4th of July as well.

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Tesla might be doing away with a long-included feature with its vehicles

It appears Tesla is mulling the possibility of not including key cards with its vehicles any longer.

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Credit: Tesla

Tesla might be doing away with a long-included feature with its vehicles, as it could be looking to phase out something that very few owners utilize.

Tesla Key Cards are included when you purchase your vehicle, and they assist in the initial setup process. However, after that, they are not super useful or relevant to the owner, as many rely on their Phone Key through the Tesla App to access their cars.

As such, it appears Tesla is mulling the possibility of not including key cards with its vehicles any longer. According to some language that has been removed from vehicle Owner’s Manuals that talks about the inclusion of key cards with the car upon delivery:

“Tesla provides you with two Model 3/Y key cards, designed to fit in your wallet.”

That sentence was removed from Owner’s Manuals, according to Not a Tesla App, which first spotted the change.

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Interestingly, the timing of the phrase being removed from Owner’s Manuals comes just after Tesla launched its “affordable” Standard Models, and could be a small money-saving measure for the company.

Key Cards have been utilized by Tesla for its cars since 2017, as they became an included accessory with the vehicle. They still have their place and are useful for other applications, such as Valet service and even to be used by car owners if their phone is dead or if someone else needs to get into the car.

They can also be purchased in the Tesla Shop for $40.

It seems as if Tesla is planning to have owners be completely reliant on the Phone Key, which is more useful and convenient than carrying around the Key Cards.

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Although it is minor, it is yet another strategy Tesla is using to trim any sort of costs that can be eliminated and could save money in the long run.

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Elon Musk confirms Tesla FSD V14.2 will see widespread rollout

Musk shared the news in a post on social media platform X.

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Credit: Whole Mars Catalog/X

Elon Musk has confirmed that Tesla will be implementing a wide rollout of Full Self-Driving (FSD) V14 with the system’s V14.2 update. Musk shared the news in a post on social media platform X. 

FSD V14.1.2 earns strong praise from testers

Musk’s comment came as a response to Tesla owner and longtime FSD tester AI DRIVR, who noted that it might be time to release Full Self-Driving to the fleet because V14.1.2 has already become very refined.

“95% of the indecisive lane changes and braking have been fixed in FSD 14.1.2. I haven’t touched my steering wheel in two days. I think it’s time, Tesla AI,” the longtime FSD tester wrote

AI DRIVR’s comment received quite a bit of support from fellow Tesla drivers, some of whom noted that the improvements that were implemented in V14.1.2 are substantial. Others also agreed that it’s time for FSD to see a wide release.

In his reply to the FSD tester, CEO Elon Musk noted that FSD V14’s wide release would happen with V14.2. “14.2 for widespread use,” Musk wrote in his reply

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Mad Max mode makes headlines

One of the key features that was introduced with FSD’s current iteration is Mad Max mode, which allows for higher speeds and more frequent lane changes than the previous “Hurry” mode. Videos and social media posts from FSD testers have shown the system deftly handling complex traffic, merging seamlessly, and maintaining an assertive but safe driving behavior with Mad Max mode engaged.

Tesla AI head Ashok Elluswamy recently noted in a post on X that Mad Max mode was built to handle congested daytime traffic, making it extremely useful for drivers who tend to find themselves in heavy roads during their daily commutes. With Musk now hinting that FSD V14.2 will go on wide release, it might only be a matter of time before the larger Tesla fleet gets to experience the notable improvements of FSD’s V14 update.

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