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Volkswagen says it can profitably sell a self-driving system for €7 an hour

(Credit: Joe Black/Instagram )

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Volkswagen is claiming that it can profitably sell a self-driving system to owners of its vehicles, and it will sell it for as little as €7 an hour.

Since 2018, Volkswagen has been developing its Modular Electric Drive, or MEB, platform for electric vehicles. After pledging to transition to a lineup of fully electric cars in 2017, VW has been working steadily on perfecting this system, which handles the responsibility of consolidating electric controls and reducing microprocessors, a strategy that would advance the company’s driver-assistance technologies.

One of the ways Volkswagen plans to introduce a self-driving system differs from how other notable automakers, like Tesla, have rolled out theirs. Tesla’s Full Self-Driving systems are for sale for one lump sum: currently $10,000 on top of what you pay for your car. While Tesla has hinted toward a subscription service soon, Volkswagen seems to be introducing this strategy for its self-driving systems. It appears to be a more customer-based option that could let drivers pay for how much they use the system and not pay a massive, lump sum of cash when they may not be interested in using the system enough to justify a large purchase.

In an interview with TopGear, Volkswagen’s Klaus Zellmer says that the automaker is planning to build every vehicle it has with all the bells and whistles, and customers can then “lease” each feature from VW, not locking them into a massive purchase or extensive program with a bulky initial cost.

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(Credit: Volkswagen)

One of the ways it plans to do this is to introduce Over-the-Air software updates, which Volkswagen promised to make available to customers later this year.

“Over the air allows access to a car’s operating system. The interesting aspect is functions on-demand,” Zellmer said in an interview. “If you happened to buy a car and weren’t convinced you needed an autonomous drive mode at the time, but then you decide you’d love to have it, we can switch it on, but we can then switch it off if the next owner of the car decides they don’t need it.”

What’s even more interesting is Zellmer says that Volkswagen can charge as little as €7 an hour for a Level 4 Autonomous drive mode. Compared to a train ticket for a destination that is several hours away, this would make the Level 4 Autonomous vehicle a more affordable option.

“Our cost modeling says if we charge €7 an hour for Level 4 autonomous drive mode, this is a profitable business case,” Zellmer added.

“Think about getting from London to say, Southampton on the train,” Zellmer said. “How much is the train ticket? It’s certainly more than €7 an hour.” It ultimately comes down to the cost-effectiveness of allowing drivers to choose which features they’d like and only charging them for how much they use them.

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What do you think about this idea? While it is similar to the subscription program Tesla has talked about in the past. It is more based on how much you actually use the feature instead of paying a fixed cost monthly. Do you think this an advantageous strategy? Let us know in the comments below.

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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IM Motors co-CEO apologizes to Tesla China over FUD comments

Liu said later investigations showed the accident was not caused by a brake failure on the Tesla’s part, contrary to his initial comments.

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Credit: Grok Imagine

Liu Tao, co-CEO of IM Motors, has publicly apologized to Tesla China for comments he made in 2022 suggesting a Tesla vehicle was defective following a fatal traffic accident in Chaozhou, China. 

Liu said later investigations showed the accident was not caused by a brake failure on the Tesla’s part, contrary to his initial comments.

IM Motors co-CEO issues apology

Liu Tao posted a statement addressing remarks he made following a serious traffic accident in Chaozhou, Guangdong province, in November 2022, as noted in a Sina News report. Liu stated that based on limited public information at the time, he published a Weibo post suggesting a safety issue with the Tesla involved in the crash. The executive clarified that his initial comments were incorrect.

“On November 17, 2022, based on limited publicly available information, I posted a Weibo post regarding a major traffic accident that occurred in Chaozhou, suggesting that the Tesla product involved in the accident posed a safety hazard. Four hours later, I deleted the post. In May 2023, according to the traffic police’s accident liability determination and relevant forensic opinions, the Chaozhou accident was not caused by Tesla brake failure. 

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“The aforementioned findings and opinions regarding the investigation conclusions of the Chaozhou accident corrected the erroneous statements I made in my previous Weibo post, and I hereby clarify and correct them. I apologize for the negative impact my inappropriate remarks made before the facts were ascertained, which caused Tesla,” Liu said. 

Investigation and court findings

The Chaozhou accident occurred in Raoping County in November 2022 and resulted in two deaths and three injuries. Video footage circulated online at the time showed a Tesla vehicle accelerating at high speed and colliding with multiple motorcycles and bicycles. Reports indicated the vehicle reached a speed of 198 kilometers per hour.

The incident drew widespread attention as the parties involved provided conflicting accounts and investigation details were released gradually. Media reports in early 2023 said investigation results had been completed, though the vehicle owner requested a re-investigation, delaying the issuance of a final liability determination.

The case resurfaced later in 2023 following a defamation lawsuit filed by Tesla China against a media outlet. According to a court judgment cited by Shanghai Securities News, forensic analysis determined that the fatal accident was unrelated to any malfunction on the Tesla’s braking or steering systems. The court also ruled that the media outlet must publish an apology, address the negative impact on Tesla China’s reputation, and pay a penalty of 30,000 yuan.

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SpaceX is exploring a “Starlink Phone” for direct-to-device internet services: report

The update was reportedly shared to Reuters by people familiar with the matter. 

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(Credit: T-Mobile)

SpaceX is reportedly exploring new products tied to Starlink, including a potential Starlink-branded phone. 

The update was reportedly shared to Reuters by people familiar with the matter. 

A possible Starlink Phone

As per Reuters’ sources, SpaceX has reportedly discussed building a mobile device designed to connect directly to the Starlink satellite constellation. Details about the potential device and its possible release are still unclear, however.

SpaceX has dabbled with mobile solutions in the past. The company has partnered with T-Mobile to provide Starlink connectivity to existing smartphones. And last year, SpaceX initiated a $19.6 billion purchase of satellite spectrum from EchoStar.

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Elon Musk did acknowledge the idea of a potential mobile device recently on X, writing that a Starlink phone is “not out of the question at some point.” Unlike conventional smartphones, however, Musk described a device that is “optimized purely for running max performance/watt neural nets.” 

Starlink and SpaceX’s revenue

Starlink has become SpaceX’s dominant commercial business. Reuters’ sources claimed that the private space company generated roughly $15–$16 billion in revenue last year, with about $8 billion in profit. Starlink is estimated to have accounted for 50% to 80% of SpaceX’s total revenue last year.

SpaceX now operates more than 9,500 Starlink satellites and serves over 9 million users worldwide. About 650 satellites are already dedicated to SpaceX’s direct-to-device initiative, which aims to eventually provide full cellular coverage globally.

Future expansion of Starlink’s mobile capabilities depends heavily on Starship, which is designed to launch larger batches of upgraded Starlink satellites. Musk has stated that each Starship launch carrying Starlink satellites could increase network capacity by “more than 20 times.”

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FCC accepts SpaceX filing for 1 million orbital data center plan

The move formally places SpaceX’s “Orbital Data Center” concept into the FCC’s review process.

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Credit: SpaceX/X

The Federal Communications Commission (FCC) has accepted SpaceX’s filing for a new non-geostationary orbit (NGSO) satellite system of up to one million spacecraft and has opened the proposal for public comment. 

The move formally places SpaceX’s “Orbital Data Center” concept into the FCC’s review process, marking the first regulatory step for the ambitious space-based computing network.

FCC opens SpaceX’s proposal for comment

In a public notice, the FCC’s Space Bureau stated that it is accepting SpaceX’s application to deploy a new non-geostationary satellite system known as the “SpaceX Orbital Data Center system.” As per the filing, the system would consist of “up to one million satellites” operating at altitudes between 500 and 2,000 kilometers, using optical inter-satellite links for data transmission.

The FCC notice described the proposal as a long-term effort. SpaceX wrote that the system would represent the “first step towards becoming a Kardashev II-level civilization – one that can harness the Sun’s full power.” The satellites would rely heavily on high-bandwidth optical links and conduct telemetry, tracking, and command operations, with traffic routed through space-based laser networks before being sent to authorized ground stations.

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FCC Chairman Brendan Carr highlighted the filing in a post on X, noting that the Commission is now seeking public comment on SpaceX’s proposal. Interested parties have until early March to submit comments.

What SpaceX is proposing to build

As per the FCC’s release, SpaceX’s orbital data center system would operate alongside its existing and planned Starlink constellations. The FCC notice noted that the proposed satellites may connect not only with others in the new system, but also with satellites in SpaceX’s first- and second-generation Starlink networks.

The filing also outlined several waiver requests, including exemptions from certain NGSO milestone and surety bond requirements, as well as flexibility in how orbital planes and communication beams are disclosed, as noted in a Benzinga report. SpaceX noted that these waivers are necessary to support the scale and architecture of the proposed system.

As noted in coverage of the filing, the proposal does not represent an immediate deployment plan, but rather a framework for future space-based computing infrastructure. SpaceX has discussed the idea of moving energy-intensive computing, such as AI workloads, into orbit, where continuous solar power and large physical scale could reduce constraints faced on Earth.

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