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Volkswagen boss Diess tells execs third-party software fix isn’t an option

Credit: Volkswagen AG

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Volkswagen boss Herbert Diess is adamant that the German car company must develop its electric vehicle software in-house. In a recent meeting with executives, Diess outlined Volkswagen’s core needs in the topic of software, indicating that it must be developed in-house and that sourcing effective and dependable software from a notable tech company simply isn’t an option if the company wants to remain independent.

“If we want to retain our independence,” Diess told his top managers in a recent meeting, “we have to be able to develop the software in the car ourselves. This is the only way for us to guarantee long-term success.”

Volkswagen’s EV project, which has been catalyzed by the introduction of the ID. family of vehicles has been a thorn in the side of the world’s leading car company since its introduction. While Volkswagen has made electric models before, they have not been on the company’s new MEB (Modular electric drive matrix) platform designed for electric cars. The platform requires a robustly accurate and scalable software program, something that Volkswagen has encountered several problems with early on in its electric offensive.

But the roadblocks and bottlenecks in Volkswagen’s software are not issues that Diess is willing to have someone else fix. He expects his competent software engineers and other team members to figure out the shortcomings on their own in an attempt to remain free of dependence on another company, whether it would be a tech company like Apple or a fellow electric automaker like Tesla.  “We must not hand over data sovereignty, the customer interface, and ultimately the “brain” of the car to the big tech players.”

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The software essentially acts as the brain of the car. To give owners a more pleasurable ownership experience, the software needs to be free of any discrepancies. The issues can cause things as small as voice recognition to go awry or things as large as software updates to be uninstallable, making a vehicle outdated and, in some cases, unusable. Volkswagen has had its fair share of issues with the MEB platform, but it claims that many of the difficulties it has encountered are solved. Additionally, it has promised owners that software updates will be ready to be downloaded to cars regularly beginning Summer 2021.

Volkswagen's software issues with the ID.3 are worse than reported: 'It is an absolute disaster'

With automakers big and small fighting to keep pace with Tesla, Diess understands the urgency of the project at hand. “This is by far the most important project for this Group in the next five, probably ten years,” he said, according to Business Insider. Automakers are being forced to adapt or be left behind as Tesla extends its lead in the sector, especially in software. While other car companies like Ford are releasing highly-competitive vehicles like the Mustang Mach-E, which has proven to be a notable adversary to the Tesla Model Y, the sector is only becoming more concentrated on what seems like a daily basis. With new companies coming around, focusing purely on electric powertrains, legacy automakers have almost dragged their feet through the proverbial mud, only delaying the inevitable: they will fall behind if they do not focus on electrification.

Volkswagen is arguably the most invested legacy automaker in the EV transition. Diess has been extremely vocal regarding VW’s transition to electric cars, recognizing that the market will only become more competitive, more robust, and more concentrated. A lead now could extend into several decades and make Volkswagen more desirable than other car companies who will confront these same issues in a few years.

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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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The Boring Company’s Music City Loop gains unanimous approval

After eight months of negotiations, MNAA board members voted unanimously on Feb. 18 to move forward with the project.

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(Credit: The Boring Company)

The Metro Nashville Airport Authority (MNAA) has approved a 40-year agreement with Elon Musk’s The Boring Company to build the Music City Loop, a tunnel system linking Nashville International Airport to downtown. 

After eight months of negotiations, MNAA board members voted unanimously on Feb. 18 to move forward with the project. Under the terms, The Boring Company will pay the airport authority an annual $300,000 licensing fee for the use of roughly 933,000 square feet of airport property, with a 3% annual increase.

Over 40 years, that totals to approximately $34 million, with two optional five-year extensions that could extend the term to 50 years, as per a report from The Tennesean.

The Boring Company celebrated the Music City Loop’s approval in a post on its official X account. “The Metropolitan Nashville Airport Authority has unanimously (7-0) approved a Music City Loop connection/station. Thanks so much to @Fly_Nashville for the great partnership,” the tunneling startup wrote in its post. 

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Once operational, the Music City Loop is expected to generate a $5 fee per airport pickup and drop-off, similar to rideshare charges. Airport officials estimate more than $300 million in operational revenue over the agreement’s duration, though this projection is deemed conservative.

“This is a significant benefit to the airport authority because we’re receiving a new way for our passengers to arrive downtown at zero capital investment from us. We don’t have to fund the operations and maintenance of that. TBC, The Boring Co., will do that for us,” MNAA President and CEO Doug Kreulen said. 

The project has drawn both backing and criticism. Business leaders cited economic benefits and improved mobility between downtown and the airport. “Hospitality isn’t just an amenity. It’s an economic engine,” Strategic Hospitality’s Max Goldberg said.

Opponents, including state lawmakers, raised questions about environmental impacts, worker safety, and long-term risks. Sen. Heidi Campbell said, “Safety depends on rules applied evenly without exception… You’re not just evaluating a tunnel. You’re evaluating a risk, structural risk, legal risk, reputational risk and financial risk.”

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Tesla announces crazy new Full Self-Driving milestone

The number of miles traveled has contextual significance for two reasons: one being the milestone itself, and another being Tesla’s continuing progress toward 10 billion miles of training data to achieve what CEO Elon Musk says will be the threshold needed to achieve unsupervised self-driving.

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Credit: Tesla

Tesla has announced a crazy new Full Self-Driving milestone, as it has officially confirmed drivers have surpassed over 8 billion miles traveled using the Full Self-Driving (Supervised) suite for semi-autonomous travel.

The FSD (Supervised) suite is one of the most robust on the market, and is among the safest from a data perspective available to the public.

On Wednesday, Tesla confirmed in a post on X that it has officially surpassed the 8 billion-mile mark, just a few months after reaching 7 billion cumulative miles, which was announced on December 27, 2025.

The number of miles traveled has contextual significance for two reasons: one being the milestone itself, and another being Tesla’s continuing progress toward 10 billion miles of training data to achieve what CEO Elon Musk says will be the threshold needed to achieve unsupervised self-driving.

The milestone itself is significant, especially considering Tesla has continued to gain valuable data from every mile traveled. However, the pace at which it is gathering these miles is getting faster.

Secondly, in January, Musk said the company would need “roughly 10 billion miles of training data” to achieve safe and unsupervised self-driving. “Reality has a super long tail of complexity,” Musk said.

Training data primarily means the fleet’s accumulated real-world miles that Tesla uses to train and improve its end-to-end AI models. This data captures the “long tail” — extremely rare, complex, or unpredictable situations that simulations alone cannot fully replicate at scale.

This is not the same as the total miles driven on Full Self-Driving, which is the 8 billion miles milestone that is being celebrated here.

The FSD-supervised miles contribute heavily to the training data, but the 10 billion figure is an estimate of the cumulative real-world exposure needed overall to push the system to human-level reliability.

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Tesla Cybercab production begins: The end of car ownership as we know it?

While this could unlock unprecedented mobility abundance — cheaper rides, reduced congestion, freed-up urban space, and massive environmental gains — it risks massive job displacement in ride-hailing, taxi services, and related sectors, forcing society to confront whether the benefits of AI-driven autonomy will outweigh the human costs.

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Credit: Tesla | X

The first Tesla Cybercab rolled off of production lines at Gigafactory Texas yesterday, and it is more than just a simple manufacturing milestone for the company — it’s the opening salvo in a profound economic transformation.

Priced at under $30,000 with volume production slated for April, the steering-wheel-free, pedal-less Robotaxi-geared vehicle promises to make personal car ownership optional for many, slashing transportation costs to as little as $0.20 per mile through shared fleets and high utilization.

While this could unlock unprecedented mobility abundance — cheaper rides, reduced congestion, freed-up urban space, and massive environmental gains — it risks massive job displacement in ride-hailing, taxi services, and related sectors, forcing society to confront whether the benefits of AI-driven autonomy will outweigh the human costs.

Let’s examine the positives and negatives of what the Cybercab could mean for passenger transportation and vehicle ownership as we know it.

The Promise – A Radical Shift in Transportation Economics

Tesla has geared every portion of the Cybercab to be cheaper and more efficient. Even its design — a compact, two-seater, optimized for fleets and ride-sharing, the development of inductive charging, around 300 miles of range on a small battery, half the parts of the Model 3, and revolutionary “unboxed” manufacturing — is all geared toward rapid production.

Operating at a fraction of what today’s rideshare prices are, the Cybercab enables on-demand autonomy for a variety of people in a variety of situations.

Tesla ups Robotaxi fare price to another comical figure with service area expansion

It could also be the way people escape expensive and risky car ownership. Buying a vehicle requires expensive monthly commitments, including insurance and a payment if financed. It also immediately depreciates.

However, Cybercab could unlock potential profitability for owning a car by adding it to the Robotaxi network, enabling passive income. Cities could have parking lots repurposed into parks or housing, and emissions would drop as shared electric vehicles would outnumber gas cars (in time).

The first step of Tesla’s massive production efforts for the Cybercab could lead to millions of units annually, turning transportation into a utility like electricity — always available, cheap, and safe.

The Dark Side – Job Losses and Industry Upheaval

With Robotaxi and Cybercab, they present the same negatives as broadening AI — there’s a direct threat to the economy.

Uber, Lyft, and traditional taxis will rely on human drivers. Robotaxi will eliminate that labor cost, potentially displacing millions of jobs globally. In the U.S. alone, ride-hailing accounts for billions of miles of travel each year.

There are also potential ripple effects, as suppliers, mechanics, insurance adjusters, and even public transit could see reduced demand as shared autonomy grows. Past automation waves show job creation lags behind destruction, especially for lower-skilled workers.

Gig workers, like those who are seeking flexible income, face the brunt of this. Displaced drivers may struggle to retrain amid broader AI job shifts, as 2025 estimates bring between 50,000 and 300,000 layoffs tied to artificial intelligence.

It could also bring major changes to the overall competitive landscape. While Waymo and Uber have partnered, Tesla’s scale and lower costs could trigger a price war, squeezing incumbents and accelerating consolidation.

Balancing Act – Who Wins and Who Loses

There are two sides to this story, as there are with every other one.

The winners are consumers, Tesla investors, cities, and the environment. Consumers will see lower costs and safer mobility, while potentially alleviating themselves of awkward small talk in ride-sharing applications, a bigger complaint than one might think.

Elon Musk confirms Tesla Cybercab pricing and consumer release date

Tesla investors will be obvious winners, as the launch of self-driving rideshare programs on the company’s behalf will likely swell the company’s valuation and increase its share price.

Cities will have less traffic and parking needs, giving more room for housing or retail needs. Meanwhile, the environment will benefit from fewer tailpipes and more efficient fleets.

A Call for Thoughtful Transition

The Cybercab’s production debut forces us to weigh innovation against equity.

If Tesla delivers on its timeline and autonomy proves reliable, it could herald an era of abundant, affordable mobility that redefines urban life. But without proactive policies — retraining, safety nets, phased deployment — this revolution risks widening inequality and leaving millions behind.

The real question isn’t whether the Cybercab will disrupt — it’s already starting — it’s whether society is prepared for the economic earthquake it unleashes.

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