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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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Tesla stuns with another FSD approval in Europe, its second in two days

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Tesla has stunned by gaining yet another approval for its Full Self-Driving suite in Europe, its second in two days and its fifth overall.

Belgium will be the latest country to allow Tesla owners to utilize FSD on public roads in Europe, joining a quickly growing list that started with the Netherlands, Lithuania, and Estonia.

On Tuesday, Denmark announced its approval of the FSD suite, which has now been followed by Belgium just one day later.

The country’s Minister of Mobility, Annick De Ridder, announced the approval on her X account, stating that she had just signed the approval of Tesla FSD. It now goes to the country’s homologation department for the last step of the approval process.

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The Belgian approval is one of mighty importance because it truly shows how quickly countries in Europe could greenlight the FSD suite consecutively. Approvals are already coming in relatively quickly, which is a great sign.

Perhaps the next big development that could come from FSD approvals in Europe is an approval from a country like England, Italy, France, Spain, or Germany. It would be something to see how FSD would perform in a major European metro, such as London, Barcelona, Madrid, Paris, Rome, or Berlin.

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Full Self-Driving does an excellent job of roaming around major U.S. cities like New York and Los Angeles, but other high-profile international cities of significance would truly mark a line in the sand for Tesla, which can simply enable any vehicle in its customer-owned fleet to run FSD with the correct approvals.

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Elon Musk

SpaceX’s Elon Musk relieves worries about orbital data centers

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Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)
Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

SpaceX CEO Elon Musk recently confronted worries about orbital data centers and launching satellites in mass quantities in space, as some voiced concerns about crowding.

Musk’s SpaceX plans to combat the issue of needing data centers by launching them into space instead of taking up valuable real estate on Earth. It has been a major point of SpaceX’s future, including its looming IPO, which could be the largest ever.

In a recent interview filmed at SpaceX’s Starlink terminal factory in Bastrop, Texas, Elon Musk directly addressed concerns that deploying large numbers of AI satellites for orbital data centers could crowd Earth’s orbit. His message was straightforward and reassuring: space is vast beyond human intuition.

“Space is really big,” Musk said. “It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the Earth, the satellites are so tiny you can’t even see them.” He emphasized that even zooming in makes a satellite appear large, but from a planetary perspective, they are minuscule specks.

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Musk pointed to SpaceX’s real-world experience operating roughly 10,000 Starlink satellites as evidence that large constellations can be managed safely. “We’ve got a pretty good idea of how to operate just really large constellations and do it safely,” he noted. SpaceX remains the only operator with meaningful experience at this scale, giving the company unique insight into tight orbital packing without compromising safety

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The discussion highlighted SpaceX’s plans for “AI1” satellites—essentially orbiting racks of AI compute powered by massive solar arrays and cooled via radiative panels in space’s vacuum.

These satellites leverage proven Starlink V3 technology, making them simpler to design than communications satellites. A first-generation unit targets around 150 kW peak power, with a 70-meter wingspan for solar panels and radiators. Laser links will connect them to each other and the Starlink network, delivering low-latency access (on the order of a few milliseconds from low-Earth orbit).

FCC accepts SpaceX filing for 1 million orbital data center plan

Musk framed orbital data centers as a practical solution to Earth’s constraints on AI growth. Ground-based facilities face power shortages, water demands for cooling, and grid limitations. In space, constant sunlight (no day-night cycle), vacuum radiative cooling, and abundant solar energy offer clear advantages.

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Production will ramp up at an expanded “Gigasat” factory in Bastrop, with solar manufacturing already underway and full AI satellite output expected at reasonable volume by the end of 2027. Starship’s rapid, high-volume launch capability, aiming for multiple flights per hour, will make massive deployment feasible.

Critics sometimes raise risks like space debris or Kessler syndrome, but Musk’s response underscores scale: even a million satellites would represent an imperceptible fraction of available orbital volume when viewed against Earth’s size. SpaceX’s automated collision avoidance and deorbiting designs for Starlink further mitigate concerns.

This vision ties into broader ambitions. Musk sees orbital AI compute as a step toward harnessing more of the Sun’s energy, advancing humanity on the Kardashev scale from a Type 0 civilization toward Type 1 and eventually Type 2. By moving power-hungry data centers off-planet, SpaceX aims to unlock orders-of-magnitude more compute while preserving Earth’s resources.

Musk’s comments should ease public anxiety. With proven operational expertise, incremental engineering, and the immensity of space itself, orbital data centers represent not overcrowding, but smart expansion into the final frontier.

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Investor's Corner

Tesla Full Self-Driving hits Level 4? One analyst says yes

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Credit: Tesla

Tesla Full Self-Driving (Supervised) is currently listed as a Level 2 suite in terms of its passenger cars. As its Robotaxi platform continues to move quickly, it has been recognized as a Level 4 ride-sharing program by the State of Texas, as Tesla recently self-certified itself.

However, a Wall Street analyst is arguing that Tesla (NASDAQ: TSLA) has effectively achieved Level 4 autonomy in most conditions in all of its vehicles, drawing on personal experience and data released by the company.

Alex Potter of Piper Sandler said in a note to investors on Wednesday that “Tesla has solved the self-driving puzzle,” pointing to decisions to offer insurance discounts for FSD-enabled policies as a signal of confidence, which is backed up by stellar safety records compared to human driving.

Investing.com initially reported on Potter’s new note.

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Additionally, Potter looks at the recent start of Cybercab production at Giga Texas as a potential indication that Tesla is ready to offer some level of unsupervised driving at least in the near future. The Cybercab has no steering wheel or pedals, completely eliminating the ability for human input.

He also sees Tesla’s allocation of “several hundred million USD (if not $1B+)” as confidence internally, seeing as it would be tough to set aside that amount of capital toward a project that the company does not see as relatively near-term.

Forward thinking, especially as Cybercab has no human controls, it would make sense that Tesla is at least close to self-driving. How close is another question.

Tesla has routinely teased that unsupervised FSD is close, but there are still a lot of things it feels as if the company has to roll out some more capability, including unsupervised parking features, known as “Banish,” better operation with regional self-driving performance, and other improvements.

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That is not to say that Tesla FSD is super impressive already. It has already completed coast-to-coast drives across the United States and Canada, it routinely takes the stress out of driving for most people, and it has proven through Tesla Safety Reports that it is safer and involved in accidents less frequently than humans.

Even Potter believes it is capable, as he used it to go from Missoula, Montana, to Minneapolis, Minnesota, back in April.

“There’s no substitute for personal experience,” he wrote.

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