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Volkswagen CEO slams stricter emissions regulations amid hopes for ‘diesel renaissance’

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In an effort to further reduce its carbon footprint, the European Union has proposed new regulations that would require carmakers to reduce their vehicles’ emissions drastically by 2030. If approved, passenger cars manufactured in the region have to reduce their emissions output by 35%. The proposed regulations, while strict, have already been lowered, as the EU Parliament initially decided on a 40% reduction in emissions.

Despite the adjusted regulations, Volkswagen CEO Herbert Diess is not too thrilled. In a statement to German news publication Süddeutsche Zeitung, the VW CEO warned that such radical changes would likely result in damages to the auto industry. If the EU decides to pursue its 35% CO₂ limit for passenger cars by 2030, Diess notes that Volkswagen would likely put around 100,000 jobs at risk. The CEO stated that a 30% reduction in emissions by 2030 would be a lot more preferable. 

“Such an industry can crash faster than many believe. The transformation in speed and impact is difficult to manage,” Diess said. 

The Volkswagen CEO’s warning comes amidst the auto giant’s recent announcement about its initiatives to push and promote electrified transport, including a ~$7 billion investment into the company’s e-mobility program. Volkswagen AG has noted that it is aiming to produce around 3 million electrified vehicles per year by 2025 across its different brands. The German auto conglomerate has also expressed its intention to commit to battery technology, supporting the development of solid-state batteries.

If the VW CEO’s statements are any indication, though, the shift of the auto industry towards electrification, as well as mandates for cleaner air from the EU, could be a bit too drastic for legacy automakers. That said, the auto industry is already being populated by more and more electrified vehicles, including all-electric cars like the Tesla Model 3, which is starting to chip away at the sales of established brands in the US auto market. Other vehicles, such as Tesla’s Model Y, as well as offerings from emerging EV companies like NIO, are set to make the auto industry even more electrified in the near future.

Porsche drops some camouflage from its Taycan prototypes. [Credit: CarPix/Facebook]

Amidst its heavy investments in electrified transport, Volkswagen AG noted last month that it is actually hoping for a “diesel renaissance.” Volkswagen AG CEO Matthias Müller, for one, is counting on the driving public to be welcoming to diesel-powered transport once more. Overall, the VQW AG remains optimistic about the potential of diesel-powered cars.

“Diesel will see a renaissance in the not-too-distant future because people who drove diesels will realize that it was a very comfortable drive concept. Once the knowledge that diesels are eco-friendly firms up in people’s minds, then for me there’s no reason not to buy one,” Müller said. 

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Müller’s hopes of a “diesel renaissance” carries a bit of irony, considering that one of its brands, Porsche, recently announced that it is completely abandoning diesel vehicles from its lineup. Porsche is also doing real-world tests on the Taycan, its first all-electric car that’s designed to compete against the Tesla Model S. Porsche plans to release the Taycan next year, with the vehicle being company’s flag-bearer until it creates an electrified fleet by 2025. Today, the Taycan is conducting road tests in several regions across the globe, with one camouflaged prototype recently being spotted in CA. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk rips ABC News over fatal NYC Tesla crash report

Musk pushed back on NYC Tesla crash coverage, pointing to a pattern of premature blame.

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Elon Musk pushed back overnight against media framing of a fatal Tesla crash in Midtown Manhattan, telling a user on X that “it wasn’t the car” and that the vehicle’s Autopilot system had nothing to do with the wreck.

The crash happened just before 3 a.m. Wednesday, when a 2024 Tesla Model Y struck a sidewalk shed outside 315 Madison Ave., a bus stop pole and a mailbox on East 42nd Street, according to the NYPD. The car kept moving several more blocks before stopping near Second Avenue. Both women inside, each 27, were taken to Bellevue Hospital, where the passenger was pronounced dead. The driver was charged with vehicular manslaughter, driving while ability impaired and leaving the scene of an accident.

Police have not attributed the crash to Autopilot or Full Self-Driving in any public statement. The charges point to impairment, not software. Musk’s response followed a since-deleted ABC News post that he said mischaracterized the incident. Replying to a user on X, Musk wrote that if Autopilot had been engaged, “they would not have crashed,” and added that “the legacy media will never forgive Tesla for failing to advertise with them,”

It’s a familiar cycle for Tesla. In June, headlines from several national outlets described a fatal crash in Katy, Texas, as happening while the car was “on autopilot,” based on the driver’s own account to police after his Model 3 struck a home and killed a 76-year-old woman. Tesla’s data told a different story when Ashok Elluswamy, Tesla’s head of AI, said the driver had pressed the accelerator to 100% and reached 73 mph in a residential zone. Harris County prosecutors later confirmed the human override and the driver was charged with manslaughter.

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Florida Gov. Ron DeSantis pointed to that same Katy crash last month to argue that outlets routinely name Tesla in crash headlines while leaving other automakers unnamed, even after a driver’s own actions are shown to be the cause. A similar pattern played out in 2024, when Musk had to clarify that FSD was never even downloaded onto the Model 3 involved in a fatal Colorado DUI crash, despite a passenger’s claim that an “auto drive feature” was in use.

Tesla has not issued a separate statement on the Manhattan crash beyond Musk’s posts on X. The NYPD’s investigation is ongoing, and no cause for the driver losing control has been released.

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Tesla’s two defunct flagship models are getting a big upgrade

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Tesla’s two recently-defunct flagship models, the Model S and Model X, are getting a big upgrade, according to the company’s Head of AI, Ashok Elluswamy.

Older Hardware 3 Model S and Model X vehicles have been the last major holdouts in Tesla’s Full Self-Driving v14 Lite rollout, and that wait now appears to be ending.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

At Tesla’s Cybercab launch, AI chief Ashok Elluswamy told Ryan McCaffrey that he thought the S and X build “was supposed to go out last week.” Evidently, Elluswamy expects the suite to be rolled out to those HW3 Model S and Model X very soon:

Those cars are not the current Model S and Model X, which already ship with Hardware 4. They are the pre-refresh flagships built around Tesla’s older Autopilot computer, often called HW3 or AI3.

Tesla stopped putting that computer in new vehicles years ago, which is why owners treat these S and X cars as a closed generation. Model 3 and Model Y vehicles on the same computer began receiving v14 Lite in late June 2026 and saw a wider North American expansion in July. South Korea followed as an early international market. The S and X versions of the same software never joined that wave.

v14 Lite is Tesla’s way of squeezing the current v14 driving stack onto hardware that cannot run the full AI 4 model. The company describes the process as distillation: behaviors learned on the newer computer, including reinforcement learning and offline models, are compressed so the older chip and cameras can use them as a guide.

Early descriptions put the distilled network at roughly 15 percent of the original size. The result is still supervised Level 2 driving. Tesla has been clear that HW3 cannot support unsupervised Full Self-Driving or robotaxi operation because of memory and bandwidth limits.

The feature list is what made the wait so frustrating for S and X owners, as plenty of new features are to be shipped with it.

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Official notes for the first Lite build, firmware 2026.20.5.1, added parking, unparking, and reversing; arrival options for a parking lot, street, driveway, or curbside; speed profiles that stay available at all times; and start-from-park engagement. Tesla also claimed better handling of merges, forks, pedestrians, traffic lights, and cut-ins, plus fewer false slowdowns and smoother lane centering.

A mid-July follow-on build, 2026.20.6.10, added more of the Hardware 4 interface, including a standalone Self-Driving app and the ability to start a trip from Park without a brake-pedal confirmation.

Elluswamy called that version the one “likely going to wide release.”

That wide release already reached most other HW3 cars in the United States and Canada. International timing still depends on regional validation and regulatory approval. For S and X owners, the remaining work appears to be model-specific validation rather than a new software stack.

There is no official Tesla changelog or build number for those two models yet, only Elluswamy’s offhand timeline. Some HW3 drivers who already have Lite report large gains over v12.6; others have described new indecision or phantom braking. The next test will be whether the same software lands cleanly on the older flagships that have waited the longest.

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Cybertruck

This tiny Tesla Cybertruck adjustment has big advantages

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Credit: Wes Morrill | X

Yesterday, we reported on Tesla Cybertruck getting some major adjustments from a manufacturing standpoint in an effort to make the all-electric pickup more cost-effective, more reliable, more serviceable, and more easily produced.

Tesla Cybertruck engineer reveals new changes in ‘constantly evolving’ pickup

One of those changes was the addition of a self-reinforcing polypropylene aero shield that sits underneath the truck. Previously, Tesla utilized aluminum for this, but the self-reinforcing polypropylene was more durable while also being cheaper and lighter.

Tesla has revealed another small change it made to the Cybertruck, and it has to do with the side repeater cameras.

Tesla does not wait for a new model year to improve its vehicles. On September 8, Cybertruck lead engineer Wes Morrill posted side-by-side photos of an updated side repeater camera housing now rolling off the line at Gigafactory Texas.

The triangular camera pod mounted on the front fender looks almost identical at first glance. A closer look reveals a revised contour that uses the air already flowing around the truck to keep the lens clearer in rain and road spray.

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The side repeater cameras sit in an exposed position on the Cybertruck’s angular stainless-steel body.

In wet weather, they readily collect water droplets that can degrade the image Autopilot and Full Self-Driving use for lane changes and blind-spot monitoring. Early production trucks sometimes left owners wiping lenses by hand or accepting temporary restrictions on driver-assistance features.

Tesla has added washers to cameras on certain other models and on Cybercab prototypes, but those active systems add cost, complexity, and extra potential leak points.

The new housing solves the problem with passive geometry. Subtle changes in the surround create localized airflow disturbances as the vehicle moves. Those eddies physically push water droplets away from the optical surface. Morrill called the result “pure vision improvement” achieved at “no cost penalty.” Once the production mold is updated, every subsequent part costs the same as the original.

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The advantages compound quickly. Clearer cameras in rain improve the reliability of driver-assistance features precisely when they are needed most. The design consumes no extra energy and introduces no new failure modes.

New Cybertrucks built after the tooling changeover receive the updated part automatically. Some owners of trucks delivered as late as June 2026 have already confirmed they received the revised housing. Retrofit questions have appeared in replies, and the cameras appear electrically compatible, though Tesla has not announced an official service program.

A few millimeters of reshaped housing will not make headlines the way a new battery pack does, but these changes are incremental and increase the Cybertruck’s effectiveness as a vehicle over time.

This improvement illustrates how Tesla continues to refine the Cybertruck after volume production began. Better wet-weather vision, zero added cost, and no extra hardware add up to a meaningful gain in everyday usability and safety.

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