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How Volkswagen’s diesel scandal may change the EV charging landscape
As part of its settlement with federal and state regulators over its diesel emissions cheating scandal, Volkswagen has agreed to invest $2 billion in charging infrastructure over the next 10 years. The money is supposed to come in chunks of $500 million every 30 months. Volkswagen is largely free to decide how and where to spend the money, but a good portion of it will be spent in California, the state with the highest concentration of electric cars.
According to Automotive News, the money may be used for EV charging stations and hydrogen fuel stations, brand neutral ad campaigns to boost awareness of EVs, or zero emission car sharing and ride hailing programs. Some see this as the answer to the chicken or egg dilemma that has plagued electric car sales for the past 6 years. People don’t want to buy a car that can’t be recharged conveniently and companies don’t want to invest in charging infrastructure if there aren’t enough electric cars in use to justify the cost.
Nissan has applauded the deal, saying the money VW invests could provide “much needed” funding to EV infrastructure. It urges VW and regulators to put a priority on installing DC fast chargers. $1 billion would be enough to pay for the purchase and installation of 10,000 of those, according to the Rocky Mountain Institute. Nissan also said the projects should be coordinated at a national level to avoid a “patchwork” of initiatives steered by individual states or cities.
Last week, the Obama administration announced a plan to expand the EV charging infrastructure in the US that would create charging corridors on 48 interstate highways spanning nearly 25,000 miles in 35 states. At a minimum, there would be one charging station every 50 miles along major routes. The proposal would require an alliance of states, utilities, charging companies, and automakers. General Motors, BMW, and Nissan have agreed to cooperate to bring the plan to fruition.
“This could be a very big moment in time where we see a shift from internal combustion engine vehicles to electric vehicles,” said Roland Hwang, transportation director at the Natural Resources Defense Council (NRDC). “This could actually be a real game changer.”
-->When there are two billion dollars on the table, everyone will be anxious to grab a piece of the pie for themselves. Volkswagen is not being entirely altruistic by agreeing to do this. Yes, its investment may benefit its competitors but it will also help Volkswagen sell its own electric cars in America. The company is in the midst of a major pivot away from diesel powered cars to electrics. The money it pays out to settle emissions cheating claims could ultimately work to its advantage.
ChargePoint, the largest private charging network in America, is one of those not pleased with the terms of the deal. It says pumping all that money into charging infrastructure “threatens to destroy the competitive market for ZEV infrastructure” and could create a monopoly for VW. Two Republican lawmakers raised similar concerns in a letter to the EPA last week.
NRDC’s Hwang agrees that the settlement money must be used appropriately. “It’s going to be incumbent upon both the Air Resources Board and the EPA to ensure that VW is investing their money wisely in a way which benefits the entire electric vehicle market and not somehow tuned to assist VW’s business plan.” Expect some wrangling over who gets what to continue.
News
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
Tesla will expand its factory shuttle service in Germany beginning January 4, adding direct rail trips from Berlin Ostbahnhof to Giga Berlin-Brandenburg in Grünheide.
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
New shuttle route
As noted in a report from rbb24, the updated service, which will start January 4, will run between the Berlin Ostbahnhof East Station and the Erkner Station at the Gigafactory Berlin complex. Tesla stated that the timetable mirrors shift changes for the facility’s employees, and similar to before, the service will be completely free. The train will offer six direct trips per day as well.
“The service includes six daily trips, which also cover our shift times. The trains will run between Berlin Ostbahnhof (with a stop at Ostkreuz) and Erkner station to the Gigafactory,” Tesla Germany stated.
Even with construction continuing at Fangschleuse and Köpenick stations, the company said the route has been optimized to maintain a predictable 35-minute travel time. The update follows earlier phases of Tesla’s “Giga Train” program, which initially connected Erkner to the factory grounds before expanding to Berlin-Lichtenberg.
-->Tesla pushes for majority rail commuting
Tesla began production at Grünheide in March 2022, and the factory’s workforce has since grown to around 11,500 employees, with an estimated 60% commuting from Berlin. The facility produces the Model Y, Tesla’s best-selling vehicle, for both Germany and other territories.
The company has repeatedly emphasized its goal of having more than half its staff use public transportation rather than cars, positioning the shuttle as a key part of that initiative. In keeping with the factory’s sustainability focus, Tesla continues to allow even non-employees to ride the shuttle free of charge, making it a broader mobility option for the area.
News
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
-->Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
Elon Musk
Elon Musk reveals what will make Optimus’ ridiculous production targets feasible
Musk recent post suggests that Tesla has a plan to attain Optimus’ production goals.
Elon Musk subtly teased Tesla’s strategy to achieve Optimus’ insane production volume targets. The CEO has shared his predictions about Optimus’ volume, and they are so ambitious that one would mistake them for science fiction.
Musk’s recent post on X, however, suggests that Tesla has a plan to attain Optimus’ production goals.
The highest volume product
Elon Musk has been pretty clear about the idea of Optimus being Tesla’s highest-volume product. During the Tesla 2025 Annual Shareholder Meeting, Musk stated that the humanoid robot will see “the fastest production ramp of any product of any large complex manufactured product ever,” starting with a one-million-per-year line at the Fremont Factory.
Following this, Musk stated that Giga Texas will receive a 10 million-per-year unit Optimus line. But even at this level, the Optimus ramp is just beginning, as the production of the humanoid robot will only accelerate from there. At some point, the CEO stated that a Mars location could even have a 100 million-unit-per-year production line, resulting in up to a billion Optimus robots being produced per year.
Self-replication is key
During the weekend, Musk posted a short message that hinted at Tesla’s Optimus strategy. “Optimus will be the Von Neumann probe,” the CEO wrote in his post. This short comment suggests that Tesla will not be relying on traditional production systems to make Optimus. The company probably won’t even hire humans to produce the humanoid robot at one point. Instead, Optimus robots could simply produce other Optimus robots, allowing them to self-replicate.
-->The Von Neumann is a hypothetical self-replicating spacecraft proposed by the mathematician and physicist John von Neumann in the 1940s–1950s. The hypothetical machine in the concept would be able to travel to a new star system or location, land, mine, and extract raw materials from planets, asteroids, and moons as needed, use those materials to manufacture copies of itself, and launch the new copies toward other star systems.
If Optimus could pull off this ambitious target, the humanoid robot would indeed be the highest volume product ever created. It could, as Musk predicted, really change the world.
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
