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?
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
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.
News
Tesla’s longer Model Y did not scale back requests for this vehicle type from fans
Tesla fans are happy with the new Model Y, but they’re still vocal about the need for something else.
Tesla launched a slightly longer version of the Model Y all-electric crossover in China, and with it being extremely likely that the vehicle will make its way to other markets, including the United States, fans are still looking for something more.
The new Model Y L in China boasts a slightly larger wheelbase than its original version, giving slightly more interior room with a sixth seat, thanks to a third row.
Tesla exec hints at useful and potentially killer Model Y L feature
Tesla has said throughout the past year that it would focus on developing its affordable, compact models, which were set to begin production in the first half of the year. The company has not indicated whether it met that timeline or not, but many are hoping to see unveilings of those designs potentially during the Q3 earnings call.
However, the modifications to the Model Y, which have not yet been officially announced for any markets outside of China, still don’t seem to be what owners and fans are looking forward to. Instead, they are hoping for something larger.
A few months ago, I reported on the overall consensus within the Tesla community that the company needs a full-size SUV, minivan, or even a cargo van that would be ideal for camping or business use.
Tesla is missing one type of vehicle in its lineup and fans want it fast
That mentality still seems very present amongst fans and owners, who state that a full-size SUV with enough seating for a larger family, more capability in terms of cargo space for camping or business operation, and something to compete with gas cars like the Chevrolet Tahoe, Ford Expedition, or electric ones like the Volkswagen ID.BUZZ.
We asked the question on X, and Tesla fans were nearly unanimously in support of a larger SUV or minivan-type vehicle for the company’s lineup:
🚨 More and more people are *still* saying that, despite this new, longer Model Y, Tesla still needs a true three-row SUV
Do you agree? https://t.co/QmbRDcCE08 pic.twitter.com/p6m5zB4sDZ
— TESLARATI (@Teslarati) July 16, 2025
Here’s what some of the respondents said:
100% agree, we need a larger vehicle.
Our model Y is quickly getting too small for our family of 5 as the kids grow. A slightly longer Y with an extra seat is nice but it’s not enough if you’re looking to take it on road trips/vacations/ kids sports gear etc.
Unfortunately we…
— Anthony Hunter (@_LiarsDice_) July 17, 2025
Had to buy a Kia Carnival Hybrid because Tesla doesn’t have a true 3 row vehicle with proper space and respectable range. pic.twitter.com/pzwFyHU8Gi
— Neil, like the astronaut (@Neileeyo) July 17, 2025
Agreed! I’m not sure who created this but I liked it enough to save it. pic.twitter.com/Sof5nMehjS
— 🦉Wise Words of Wisdom – Inspirational Quotes (IQ) (@WiseWordsIQ) July 16, 2025
Tesla is certainly aware that many of its owners would like the company to develop something larger that competes with the large SUVs on the market.
However, it has not stated that anything like that is in the current plans for future vehicles, as it has made a concerted effort to develop Robotaxi alongside the affordable, compact models that it claims are in development.
It has already unveiled the Robovan, a people-mover that can seat up to 20 passengers in a lounge-like interior.
The Robovan will be completely driverless, so it’s unlikely we will see it before the release of a fully autonomous Full Self-Driving suite from Tesla.
Energy
Tesla launches first Virtual Power Plant in UK – get paid to use solar
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.
Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.
The company states that those who enroll in the program can earn up to £300 per month.
Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.
This is its first in the UK:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.
It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.
Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.
Elon Musk
Waymo responds to Tesla’s Robotaxi expansion in Austin with bold statement
Waymo and Tesla are surely in a battle of “mine’s bigger” right now.
Waymo has responded to Tesla’s Robotaxi expansion in Austin with a bold statement by extending its own geofence by a considerable margin.
Earlier this week, Tesla chose to expand its geofence for its driverless Robotaxi service in Austin, Texas, substantially. The geofence more than doubled, bringing Tesla’s total serviceable area within Austin to approximately 42 square miles.
Tesla’s Robotaxi geofence in Austin grows, and its shape is hard to ignore
This put Tesla ahead of Waymo in terms of its service area in Austin, as the company’s geofence was just 37 square miles.
We reported on how significant this statement was for Tesla, as it has only been operating its driverless Robotaxi platform in Austin for less than a month, compared to Waymo, which has been there since March.
Tesla Robotaxi has already surpassed Waymo in this key metric
Waymo took it as a challenge, it seems, and expanded its geofence, and it did it impressively and massively. Now, Waymo’s geofence spans 90 square miles within Austin, including new neighborhoods such as Crestview, Windsor Park, Sunset Valley, Franklin Park, as well as popular tourist destinations like The Domain and McKinney Falls State Park.
The move “unlocks another key milestone in Austin as our operating territory with Waymo expands from 37 to 90 square miles, which means that even more riders can experience Waymo’s fully autonomous vehicles through the Uber app,” Sarfraz Maredia, Global Head of Autonomous Mobility & Delivery at Uber, said.
Additionally, Shweta Shrivastava, Senior Director of Product Management at Waymo, said:
“Just months after serving our first Austin riders with Uber, we’re excited to offer our 24/7 service to more of the city. The service with our partners at Uber is healthy, and we are ready for more Austinites to experience the magic of fully autonomous driving. Austin remains one of the fastest growing cities in the country, and we are doing our part to grow with it.”
Across the U.S., this expansion brings Waymo’s service area to more than 700 square miles, as it also operates in California and Arizona.
Here’s what the two geofenced regions look like:
🚨 Here’s a comparison of Tesla Robotaxi vs Waymo geofences in Austin https://t.co/6jIaDwBm2I pic.twitter.com/B9jiCIU21F
— TESLARATI (@Teslarati) July 17, 2025
The competition between Waymo and Tesla only benefits consumers, as the two companies are evidently sparring for a larger service area in Austin. Tesla launched its interestingly-shaped geofence expansion on Monday, and it seemed that the shape was more of a joke that could also be construed as a warning to competitors.
Tesla could more than likely have pushed its geofence to a larger size, but it purposely chose to do so in a comical fashion.
Now that Waymo has responded in this way, we’ll see if Tesla puts the jokes aside.
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Tesla launches first Virtual Power Plant in UK – get paid to use solar
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