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Volkswagen faces mounting pressure from Tesla and BYD

Credit: Volkswagen

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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.”

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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.

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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

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla gets another layer of gamification with Free Supercharging on the line

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Credit: Tesla

Tesla Supercharging is getting yet another layer of gamification, as the company is rolling out a new competition that could win Free Supercharging miles.

Tesla is ramping up its efforts to make vehicle ownership more engaging through gamification. In June 2026, the company announced the 2026 Free Supercharging Competition, building on the Charging Passport feature introduced the previous year. This initiative turns Supercharging into a competitive, collectible adventure while offering substantial real-world incentives.

The Charging Passport, rolled out late last year, functions like a digital travel log or a year-in-review for Tesla owners. These types of things are used by many platforms, including Spotify and Apple Music, which show listeners what type of taste they had for the year.

Accessed in the Tesla App under the ‘Charging’ section, it displays a map of visited Superchargers, key stats, such as total energy charged (kWh), number of unique sites, total charging sessions, top charging day, and miles added. Owners earn collectible Charging Badges in categories, which include:

  • Charging Milestones – for total energy, consecutive weeks of Supercharging, or unique sites visited
  • Iconic Chargers – for Flagship Locations or stations near famous landmarks
  • Special Events – limited-time badges for specific experiences. These badges appear within 24 hours of qualifying activity and provide a fun, shareable recap of an owner’s Supercharging journeys. Milestone progress resets annually, allowing fresh challenges each year

The 2026 contest elevates this gamification by rewarding top performers with lifetime free Supercharging. All Supercharging sessions from January 1 to December 31, 2026, count toward the competition. To participate, owners must enable “Share Charging Data with Tesla App” in vehicle settings and open the 2026 Charging Passport in the app at least once before January 1, 2027.

Nine winners will be selected — three per region (Americas, Asia-Pacific, and EMEA, with some  countries excluded for regulatory reasons) — one in each of three categories:

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  • Longest Trip: Longest continuous streak of unique Supercharger locations where each new site is visited within 24 hours of the previous session’s start time
  • Most Unique Supercharger Sites Visited: Highest number of distinct locations
  • Most Energy Supercharged: Highest total in kWh charged at Superchargers

A unique site is defined as shown in the Tesla app or vehicle navigation. Repeat visits during a streak are allowed but do not extend the count. Ties are broken by total energy charged. Ineligible participants include vehicles already receiving free Supercharging, commercial-use vehicles (taxi, rideshare, delivery), Tesla employees and their immediate families, and residents of certain excluded countries.

Winners receive free Supercharging on the winning vehicle for as long as they own or lease it.

This contest is part of Tesla’s broader gamification strategy. The Safety Score has long rewarded safe driving habits with a numerical rating that can influence insurance rates or feature access. The referral program incentivizes owners with credits or free Supercharging months for successful referrals.

In-app statistics, streaks, and community features further encourage engagement. Older third-party apps even awarded “mayor” titles for frequenting specific Superchargers.

By combining digital badges, competitive leaderboards, and high-value rewards, Tesla boosts network utilization, gathers usage data, and fosters deeper owner loyalty. The 2026 Free Supercharging Competition invites enthusiasts to plan epic road trips while turning everyday charging into a rewarding pursuit. With the Passport already proving popular, expect heightened activity across the Supercharger network throughout the year.

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Tesla tops American-Made Index for sixth-consecutive year

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Credit: Tesla

Tesla is atop the American-Made Index from Cars.com for the sixth-straight year, as the Model 3 and Model Y took the top two spots, respectively.

Last year, the Model 3, Model Y, Model S, and Model X took the top four spots, respectively. The company has routinely performed well in the Index. However, Tesla discontinued its flagship Model S and Model X earlier this year, which took the two cars out of the ranking.

Cybertruck is not considered due to its curb weight being above the 8,500-pound threshold, which eliminates it from being required to have more detailed assembly information.

Cars.com uses five main categories to develop its rankings:

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  • Location(s) of final assembly
  • Percentage of U.S. and Canadian parts
  • Countries of origin for all available engines
  • Countries of origin for all available transmissions
  • U.S. manufacturing workforce

These five major factors are then put into a 100-point scale. The vehicles with the highest scores sit atop the list. The Model 3 edged out the Model Y.

Tesla uses a strong domestic strategy to build its cars and parts domestically. It relies on intense vertical integration that reduces its dependence on global suppliers, keeping more value and jobs in the United States.

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This strategy has helped Tesla gain a strong reputation for domestically produced vehicles and parts. However, it helps it with more than just awards like this one. Keeping a supply chain local has also helped insulate Tesla more than others from tariffs and supply chain disruptions.

This year’s American-Made Index from Cars.com studied nearly 400 vehicles from the 2026 model year. Tesla was the only manufacturer to have an EV inside the Top 10. The Kia EV9 was the next EV to make the list, scoring the 17th position.

The Hyundai IONIQ 5 was 21st, and the final EV to make the list was the Cadillac LYRIQ in 77th.

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Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

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Credit: CNBC

Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.

CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.

Musk said:

“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”

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Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”

He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”

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Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.

The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.

Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”

Tesla alleged “driverless” crash in Texas: What is known so far

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“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.

This appears to be a similar situation. However, an investigation will prove what happened for sure.

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