Volkswagen faces mounting pressure to keep up with Tesla and Chinese automakers in the transition to battery-electric vehicles (BEVs), and its success in doing so could have major implications.
During the pandemic, Volkswagen fell behind in the Chinese auto market as companies like BYD, Nio, and Tesla took over, with the competition nearly doubling the market’s EV and hybrid offerings (via Bloomberg). Volkswagen’s global sales of battery-electric vehicles (BEVs) haven’t managed to accelerate as fast as rivals Tesla or BYD, and the threat of growing EV startups also looms.
In the second quarter alone, Tesla delivered 466,140 as the world’s top BEV seller, followed by BYD with roughly 328,600 units sold, according to BloombergNEF. Volkswagen had just around 145,000 sales.
Credit: Bloomberg
Now, as the presence of Chinese automakers and Tesla grows in Europe, Volkswagen is being tested by fierce competition, and the automaker risks severe consequences to the German economy, which is Europe’s largest economy. Foreign Minister Annalena Baerbock highlighted the urgency of the situation at the Münich Car Show last week.
“The auto industry is faced with the question of whether and how we will be a global leader in the future,” Baerbock said at the event. “For our nation, where the auto industry accounts for a large share of value creation, this is not just an economic issue, but also a question of security.”
Tesla’s upcoming release of the highly anticipated Cybertruck and its recently refreshed Model 3 Highland are set to increase pressures put on Volkswagen to make appealing BEVs, not to mention the U.S. automaker’s lineup-wide price cuts made throughout this year.
Meanwhile, the global EV market is growing rapidly, and BloombergNEF data predicts that BEV sales will nearly rival gas car sales in the global market by 2030, surpassing them altogether by 2031.
Credit: Bloomberg
Volkswagen hasn’t exactly had a smooth introduction to BEVs. In 2015, the company admitted to cheating on emissions standards through the use of its “clean diesel” products, and it later paid out over $9.5 billion in settlement money to vehicle owners. Today, the automaker still hasn’t rebounded to pre-pandemic production levels across vehicle segments in Germany.
“Our international competition is not sitting idle,” said Hildegard Müller, the auto lobby German Association for the Automotive Industry (VDA) leader. “Our companies are mainly generating their profits abroad, helping to keep jobs in Germany. But the pressure is rising because of weak economic growth and conditions that are no longer internationally competitive.”
Credit: Bloomberg
During the same period of time, Tesla has expanded significantly with the addition of new production facilities in Austin, Texas, within the U.S., and overseas in Shanghai, China and outside of Berlin, Germany. Earlier this year, Tesla also announced plans to debut an upcoming factory in Mexico.
In the last few years, Volkswagen has also seen a shake-up of executive power, with CEO Oliver Blume taking over for former CEO Herbert Diess last fall. Since taking over and retaining his title as head of Porsche, Blume has managed new partnerships and hopes to fix issues at Cariad, the automaker’s in-house software developer.
Earlier this week, a German publication reported that Volkswagen’s BEV plant in Zwickau, Germany would cut as many as 2,500 jobs, though the automaker hasn’t responded to the reports. The Zwickau facility has been exclusively producing BEVs since last January, and it produced a total of 218,000 units last year.
The German automaker also has plans to build a $2 billion BEV factory in South Carolina, which is expected to begin production in 2026. The plant will bring back the Volkswagen Scout as a BEV brand, along with other vehicles in the SUV and pickup segments.
Volkswagen’s Scout to build $40K electric SUV in South Carolina
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Tesla just unlocked sales to 50,000+ government agencies
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
Tesla just unlocked sales to over 50,000 government agencies by entering a new agreement with Sourcewell, a purchasing cooperative.
Tesla entered a new master purchasing agreement with Sourcewell, the largest government purchasing cooperative in the U.S. This will enable streamlined sales of its EVs to more than 50,000 U.S. public entities. Tesla entered Designated Contract 0813525-TES, and the agreement covers Model 3, Model Y, and Cybertruck, and potentially other vehicles the company could release.
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
The deal allows eligible agencies, including cities, school districts, state governments, and higher-education institutions, to purchase Tesla vehicles directly through Sourcewell without conducting their own lengthy competitive bidding or request-for-proposal (RFP) processes.
Pricing is pre-negotiated and capped, providing transparency and predictability. Agencies simply register for a Sourcewell account online or by phone and place orders under the existing contract. This cooperative model aggregates demand across thousands of members, reducing administrative costs and time while ensuring compliance with public procurement rules.
For Tesla, the agreement removes major barriers to government fleet sales. Public-sector procurement cycles often stretch 12 to 18 months due to bidding requirements and committee reviews.
Tesla buyers in the U.S. military can get $1,000 off Cybertruck purchases
By securing the master contract, Tesla gains immediate, simplified access to a massive customer base that previously faced friction in adopting EVs. The company highlighted in its announcement that the partnership will help these 50,000-plus agencies “save thousands of $$$ in operating costs for their vehicle fleet over time” through lower maintenance, energy efficiency, and the elimination of tailpipe emissions.
The initial four-year term runs through November 13, 2029, with options for up to three one-year extensions, offering long-term stability for both parties.
Sourcewell’s role is central to execution. As a cooperative purchasing organization, it negotiates and manages vendor contracts on behalf of its members, then makes them available nationwide. Participating entities contact Tesla’s dedicated fleet team or Sourcewell representatives to complete purchases, bypassing redundant paperwork.
This structure accelerates fleet electrification while maintaining fiscal accountability—agencies receive pre-vetted pricing and terms without reinventing the wheel for each vehicle order.
The partnership positions Tesla to capture a larger share of the public fleet market, where total cost of ownership often favors electric vehicles once procurement hurdles are removed.
For government buyers, it translates to faster deployment of sustainable fleets, reduced long-term expenses, and alignment with environmental mandates. As more agencies transition, the contract could contribute to broader EV infrastructure growth and taxpayer savings across the country.
Elon Musk
How much of SpaceX will Elon Musk own after IPO will surprise you
SpaceX’s IPO filing confirms Musk will maintain his voting power to make key decisions for the company.
Elon Musk will retain dominant voting control of SpaceX after it goes public, according to the company’s IPO prospectus that was filed with the SEC. The filing reveals a dual-class equity structure giving Class B shareholders 10 votes each, concentrating power with Musk and a handful of other insiders, while Class A shares sold to public investors carry one vote.
Musk holds approximately 42% of SpaceX’s equity and controls roughly 79% of its votes through super-voting shares. He will simultaneously serve as CEO, CTO, and chairman of the nine-member board after the listing. Beyond that, the filing includes provisions that may limit shareholders’ influence over board elections and legal actions, forcing disputes into arbitration and restricting where they can be brought.
The case for Musk holding this level of control is grounded in SpaceX’s actual history. The company’s most important bets, from reusable rockets to a global satellite internet constellation, were decisions that ran against conventional aerospace thinking and would likely have faced resistance from a board accountable to investor gains. Fully reusable rockets were considered economically irrational by established industry players for years. Starlink, which now generates over $4 billion in annual operating profit, was widely dismissed as financially unviable when it was proposed. The argument for concentrated founder control seems straightforward, and the decisions that built SpaceX into what it is today required someone willing to ignore consensus and absorb years of losses.
SpaceX files confidentially for IPO that will rewrite the record books
For context, Musk’s position is significantly more dominant than Zuckerberg’s at Meta. The comparison with Tesla is also worth noting. When Tesla did its IPO in 2010, it did not issue dual-class shares. Musk has only recently pushed for enhanced voting protection, proposing at least 25% control at Tesla in 2024 after selling shares to fund his Twitter acquisition left him with around 13%.
SpaceX has clearly learned from that experience and structured the IPO differently by planning to allocate up to 30% of shares to retail investors, roughly three times the typical norm for a large offering. The roadshow is expected to begin the week of June 8, with a Nasdaq listing rumored to be a $1.75 trillion valuation and a $75 billion raise.
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Tesla bolsters App with new safety, insurance, and storage features
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
Tesla is bolstering its smartphone App with a series of new features to streamline operations for owners. The new additions include fixes to safety, its in-house insurance offering, and storage management for Dashcam clips.
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
But in classic Tesla fashion, the company is aiming to improve the offerings of the app, and it is doing so with a handful of new features. They were first discovered by Tesla App Updates.
Tesla Insurance – Safety Score 3.0
This is truly part of the Spring 2026 Update, but Tesla has now given more transparency on how FSD has saved people money on their premiums.
Tesla intertwines FSD with in-house Insurance for attractive incentive
Additionally, Tesla is now automatically awarding a Safety Score of 100 for every mile traveled on Full Self-Driving (Supervised).
Update Tracking
Updates traditionally appear on the App or on the Center Touchscreen in the car. There is nothing better than seeing that Green Arrow at the top of the screen, or opening your app and seeing that there is a Software Update available.
Now, there will be no need to manually check the app and initiate the download. Tesla is enabling a new feature that will automatically download updates for you.
Storage Management
Your USB drive can now be remotely formatted, and old Dashcam clips can be deleted straight from the phone. When you record a lot of things using the Dashcam feature, that storage fills up pretty quickly.
Now, manually deleting the Dashcam videos is easier than ever.
Trailer Light Test
This is perhaps the coolest and most crucial addition to the Tesla App, as those who tow and haul will now be able to trigger a diagnostic light sequence from the app while standing behind your trailer to ensure the brake lights work.
Verifying your trailer lights are connected properly and operating normally and as intended is normally a massive hassle.
Now, a new trigger will be available to initiate a diagnostic light sequence directly from your phone.