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VW CEO Diess talks EV sales, autonomy, and Elon Musk

(Credit: Herbert Diess/LinkedIn)

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Volkswagen Auto Group CEO Herbert Diess has led his German car company to be one of the most respected in terms of large entities that have chosen to leave a long and successful past of producing gas-powered vehicles in favor of electrified models. Diess has worked long and hard to dissolve VW’s past mistakes, especially the Dieselgate scandal from several years ago. However, in 2021, VW has left its blemished past behind it and is the most popular electrified brand in Europe, leading companies like Tesla, Peugeot, and Renault in the world’s most robust market for electrified vehicles. Diess is a big part of this accomplishment and has one of the more keen eyes for the industry, self-admittedly behind Elon Musk.

Diess’ thoughts on the EV industry and how 2021 has shaped it to be one of the most difficult and challenging sectors of the year due to semiconductor shortages, along with his plans for Volkswagen’s electrified future and his respect for fellow auto CEO Elon Musk were discussed in a recent interview with CNN’s Anna Stewart who caught up with the VW frontman at the International Motor Show in Munich.

50% of sales electric by 2030

Diess responds to Stewart’s first inquiry, which regards VW’s goal to have 50% of its sales be electric by 2030. “In Europe, we are already leading,” Diess said, which is true based on the most recent figures from EU-EVs.com, showing Volkswagen has a comfortable lead over second-place Tesla by just over 20,000 vehicles. In other markets, Volkswagen is performing well. “Even in the US, we have been in second place for the last months, and in China, we are growing fast. We think we will become the market leader for EVs,” Diess adds.

Volkswagen has absolutely taken on the EV initiative better than 99% of other car companies, making its goals the most believable moving forward. The ID. family of vehicles has performed incredibly well, with Volkswagen offering specific models for specific markets to keep things fresh, exciting, and relevant. The question is, will VW be able to keep up its domination of the European market when Tesla begins production at Giga Berlin later this year?

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Global semiconductor shortage

One of the biggest bottlenecks in recent history, the global semiconductor supply shortage, has plagued automakers to scrap basic functions like “push-to-start” features in ICE vehicles. Diess, a usually optimistic person, admits that Volkswagen is still struggling with the shortages, and he is not quite sure when things will get better.

“It has gotten worse already. We expected that we would have relief after the summer break, which didn’t happen because, in Malaysia, we had really quite significant problems with Covid,” Diess added. “Some of our suppliers, the back ends of our suppliers are mostly based in Malaysia, and three plants were hit hard. We think that we will overcome this situation towards the end of the month, and then we should see relief.”

Autonomy

In terms of autonomy, Diess is optimistic about the capabilities of self-driving cars. “We see a much bigger transition for the industry when cars are becoming autonomous because cars will be used differently, used by more people. You can send your children or your grandparents in a car somewhere. Now imagine!” Volkswagen previously claimed it could sell a self-driving system that charged by the hour, and it would be profitable doing it. However, Diess said the business still has a long way to go, and Volkswagen will likely roll out its first fleet in 2024 or 2026. “But it’s now time to invest and to prepare. And that’s what we are doing,” he stated.

Volkswagen says it can profitably sell a self-driving system for €7 an hour

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Volkswagen vs. Tesla

Diess holds high regard for Tesla CEO Elon Musk. The two are friends and have shared several compliments with each other on several occasions. Musk even took a ride in an ID.3 in Germany with Diess piloting the vehicle, which ignited rumors of a potential collaboration between the two automotive CEOs. Diess still holds the utmost respect for Musk and Tesla, calling the company’s frontman “a brilliant guy” who “makes a difference. He’s changing the world with his ventures.”

Despite the two companies combating to dominate EV sales across the globe, Diess does not see any parallels between VW and Tesla. “We are quite different. He is very focused on Tesla, on his story. I’m running a big traditional company, which we try to prepare for the future. And I think we also require different characters. I like him a lot, but I think we are quite different.”

As for whether Diess was ever offered the CEO job at Tesla, Herbert simply ended with, “I don’t know,” and a slight chuckle.”

What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.

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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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SpaceX adjusts Starship Flight 13 test launch target date once again

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Credit: SpaceX

SpaceX has updated its target for the thirteenth integrated flight test of Starship, aiming for as early as Thursday, July 23. The 90-minute launch window opens at 5:45 p.m. CT from the company’s Starbase facility in South Texas.

The target flight was initially rescheduled for today, but SpaceX pushed it back again.

This latest adjustment follows an aborted attempt earlier in the week and reflects the iterative, rapid-development approach that has defined the Starship program. With the vehicle already stacked and ground teams making final preparations, the mission represents another step toward proving the full reusability of the world’s most powerful rocket system.

The original launch attempt on July 16 was scrubbed at T-0 when several Raptor engines on the Super Heavy booster failed to ignite properly. The automatic abort system triggered just as the engines began their startup sequence, preventing liftoff.

SpaceX CEO Elon Musk confirmed that some engines did not start as expected, prompting the decision to replace two Raptors on Booster 20 to ensure reliability. The issue occurred despite a successful full-duration static fire earlier, highlighting the complexities of coordinating 33 engines under flight conditions.

This cautious approach underscores SpaceX’s commitment to safety amid an aggressive test cadence.

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SpaceX comes with a slew of changes for Starship Flight 13

Flight 13 builds directly on the lessons from Flight 12 in May 2026. The Super Heavy booster’s primary goals include a successful liftoff, ascent, stage separation, boostback burn, and controlled splashdown in the Gulf of America.

Hardware and software modifications address the off-nominal flip and boostback burn problems from the prior flight, where propellant slosh and engine relight issues led to an uncontrolled impact.

For the Starship upper stage, objectives include deploying 20 operational Starlink V3 satellites, the first real payload of this type, performing a single Raptor engine relight in space, and executing a controlled entry, descent, and splashdown in the Indian Ocean. Propulsion upgrades aim to improve engine-out capability after one vacuum Raptor was lost on Flight 12.

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Additional test elements focus on heat shield performance. Six satellites carry cameras to image the tiles during flight, while white-painted tiles and upgraded attachments on flaps and the aft skirt will gather data for future reusability.

The FAA completed its mishap investigation into Flight 12 earlier this month, clearing the regulatory path.

This suborbital mission, the second with V3 vehicles, advances Starship toward operational missions, including potential crewed flights and support for NASA’s Artemis program. Success would mark significant progress in rapid reusability and satellite deployment from the massive system.

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Elon Musk debunks $52 billion SpaceX-NVIDIA GPU deal

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Credit: SpaceX

Elon Musk dismissed reports claiming SpaceX had placed a massive order for NVIDIA GPUs worth $52 billion. The denial came hours after Taiwanese media, citing unnamed industry sources, reported that SpaceX planned to acquire approximately 13,000 AI server racks, equating to roughly 1 million GB300 GPUs, from Foxconn.

Each rack was estimated at around $4 million, with deliveries potentially starting in late 2025.

The story suggested this would mark SpaceX’s first major foray into Foxconn-manufactured NVIDIA hardware, breaking from suppliers like Supermicro and Dell. Musk responded bluntly on X:

Despite the denial, the rumored scale aligns with SpaceX’s explosive growth in AI infrastructure. NVIDIA’s GB300 (successor to the GB200 NVL) racks deliver unprecedented performance for large-scale training and inference. A $52 billion commitment would dwarf most corporate AI budgets and provide the compute muscle needed for frontier models.

SpaceX already operates gigawatt-scale terrestrial clusters like Colossus in Memphis, Tennessee, and has monetized them aggressively through leasing deals.

SpaceX’s newest Starmind will make earth data centers obsolete

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Major customers include Anthropic (paying ~$1.25 billion monthly for 220,000+ GPUs), Google (~$920 million monthly for 110,000 GPUs), and Reflection AI. These arrangements are projected to generate tens of billions in annual revenue, far outpacing traditional SpaceX businesses.

Such an investment would fuel internal AI efforts, particularly Grok models under the integrated SpaceXAI division, while supporting ambitious orbital data center plans. SpaceX envisions launching thousands of AI-optimized satellites powered by solar energy and cooled in space, bypassing terrestrial power and land constraints.

This “Starmind” constellation could position the company as a leader in space-based computing.

SpaceX as an Emerging AI Powerhouse

Once primarily known for reusable rockets and Starlink satellite internet, SpaceX has transformed into a multifaceted AI player.

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The 2026 acquisition of xAI integrated Grok development directly into the company. Starlink’s low-latency global network complements massive compute clusters, enabling efficient data flow for training and serving AI models.

Musk has long argued that AI scaling demands solutions beyond Earth, citing things like real estate and electricity limits on the ground.

While the Foxconn deal may not be in the cards, SpaceX’s trajectory is continuing on the path of blending aerospace engineering with hyperscale AI to dominate both launches and intelligence infrastructure.

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Elon Musk sheds details on Tesla FSD’s upcoming improvements

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Credit: Tesla

Elon Musk shed more details on the upcoming improvements to Tesla’s Full Self-Driving suite, specifically one that the CEO mentioned last week, which should help owners see fewer interventions.

Last week, Musk hinted that one major improvement that Tesla planned to roll out to Full Self-Driving users was the car’s ability “to remember your specific interventions and match each person’s individual preferences.”

Elon Musk says your Tesla will start to learn your individual preferences

This small bit of detail was linked to a post from Tesla community member Whole Mars, who said that FSD’s tendency to exit the carpool lane, a feature that owners can turn on but at times the car will disregard.

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It sounds like, based on Musk’s two responses since that original post, it is safe to say the things FSD will start to remember are wide-ranging. However, it seems the biggest differences will be noticed with parking performance, which Musk continues to mention.

Highway Lane Preferences

The initial post Musk mentioned, with these new remembered preferences soon to arrive for Tesla owners everywhere, was the Carpool/Express Lane.

Tesla has a setting in the FSD menu that lets drivers enable HOV Lane travel. However, the car won’t always stay in that suggested or preferred lane.

Some owners have also complained of left lane camping, an illegal maneuver in at least some states. Cruising in the passing lane has resulted in tickets for some, as it is illegal in over 30 states in the U.S.

Tesla did not confirm if these preferences would also be included in new FSD behaviors, but it would certainly help move the company toward fewer interventions.

Parking Preferences

This seems to be the real focus of the entire operation, as Musk stated several weeks ago that parking was overwhelmingly the most frequent reason for interventions.

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The major issue with parking is not necessarily the parking “performance,” as FSD is generally good at parking. It definitely has its issues; we’ve recorded plenty of them, including this one as recent as last week:

However, the changes coming are more about preferences, meaning where you park and how your car enters the spot, either pulling in or backing in. Owners have also reported that pulling into the correct driveway is a relatively rare thing for FSD, something else that needs to be confronted.

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Musk basically confirmed that all of these things would be part of Tesla’s plan to address driver preferences with FSD:

It’s obvious there is something big coming with FSD, and the company’s focus seems to be eliminating any intervention that would be related to preferences. This is probably the biggest bottleneck between Tesla and being fully autonomous. Critical interventions do occur, but they are much less frequent.

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The only time a driver should be taking over is because of a critical intervention; this seems to be the goal of Tesla right now.

This all seems to be a priority as Tesla continues to move closer to the prospect of unsupervised driving.

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