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Volkswagen considers backing out of $2 billion EV production facility
An internal letter to employees at Volkswagen has now stated the company’s intention to reconsider building its new Trinity EV production facility.
Under the previous leadership of Herbert Diess, Volkswagen planned to vastly expand EV production with a new enormous facility named the Trinity Plant. The facility would be a $2 billion investment in furthering Volkswagen’s EV future, but now with Mr. Diess ousted from the helm of the German automaker, the planned factory is being reconsidered.
In a leaked letter to Reuters, Volkswagen executives told employees, “we are taking the opportunity to look at all projects and investments and check their viability.” But the intention is clear; even as the Trinity plant was announced, Volkswagen executives worried that existing facilities in Germany could handle the demand for EVs in Europe as the automaker switched to electric offerings. They were essentially arguing that the new facility would be unnecessary.
The planned Trinity facility is supposed to begin production of the new ID. sedan in 2026, but those plans may now be changing. Reuters reports that current VW CEO Oliver Blume is considering pushing back the opening date to 2030, but many would not be surprised if the planned facility were abandoned altogether.
The lack of worry about falling behind on EV production also contradicts Mr. Diess’s belief. Mr. Diess famously commented that without the capacity upgrade, Volkswagen could easily fall behind the production capacity of Tesla. This comment was made following the opening of Tesla’s Giga Texas facility. Since then, nearly every facility Tesla operates has expanded production capacity, notably Tesla Giga Shanghai, which has become a vital producer for the American carmaker.
Other European automakers are not following in the footsteps of Volkswagen, which is typically seen as a leader in the market. Other German automakers, BMW and Mercedes, are working on expanding EV production, notably in China. Even French counterpart Renault has continued with their plan to create an enormous plant complex they call ElectriCity.
Volkswagen has not made a formal decision regarding the Trinity plant’s future, but many expect the company to be taking a long hard look at its sizeable investment. It could prove to be a turning point for the company’s future, for better or worse.
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Tesla’s global fleet surpasses 9 million vehicles worldwide
The update was posted by Tesla China, which competes in the world’s most competitive electric vehicle market.
Tesla’s global fleet has now exceeded 9 million vehicles, a major milestone for the electric vehicle maker.
The update was posted by Tesla China, which competes in the world’s most competitive electric vehicle market.
Tesla’s global fleet crosses 9 million vehicles
The milestone was highlighted in a graphic shared by Tesla China, which thanked the over nine million Tesla owners worldwide for their support over the years. To celebrate the milestone, Tesla China announced several incentives for select owners, from Model Y L test drives to Tesla Bot Premium Gift Sets to Supercharging perks.
The milestone comes 16 years after the company started delivering its first vehicle, the original Tesla Roadster, as observed by members of the Tesla community. The first production Roadster was delivered to Elon Musk, who was serving as chairman at the time.
Reaching a global fleet of more than 9 million vehicles reflects the cumulative impact of Tesla’s growth over the past decade, particularly following the introduction of high-volume models such as the Model 3 and Model Y. The Model 3 and Model Y have allowed Tesla to transform from a niche automaker into one of the world’s largest producers of electric cars.
Strong China sales help drive fleet growth
Tesla’s expanding global footprint has been supported by solid performance in China, where the company posted a strong finish to 2025. In December, the Model Y ranked as the country’s top-selling new energy vehicle, as per sales data compiled by Chinese auto industry aggregator Yiche.
The Model Y led China’s NEV rankings with approximately 65,874 units sold during the month, outperforming a field dominated by domestic manufacturers such as BYD, SAIC-GM-Wuling, and Xiaomi. Tesla’s Model 3 also delivered an impressive result, ranking eighth overall with just under 28,000 units sold, ahead of numerous locally produced competitors despite its premium pricing.
Tesla China’s broader performance in December was equally notable. The company sold 97,171 vehicles wholesale during the month, based on data from the China Passenger Car Association. The result marked Tesla China’s second-highest monthly total on record, trailing only November 2022’s peak of 100,291 units.
Tesla has launched another new affordable Model Y configuration in the United States, now adding a fifth version of the all-electric crossover to its lineup, diversifying the car’s options and giving consumers more choices at the time of purchase.
Tesla launched the Model Y All-Wheel-Drive on Monday night, pricing it at $41,990. It features 294 miles of range, a 125 MPH top speed, and a 0-60 MPH acceleration rate of 4.6 seconds.
The vehicle is the second most-affordable configuration of the Model Y, only eclipsing the Model Y Rear-Wheel-Drive, which is priced at $39,990.
The move to expand the Model Y lineup comes just a week after CEO Elon Musk confirmed the company would remove the Model S and Model X from production, making way for manufacturing of the Optimus robot at the company’s Fremont, California, factory.
🚨 Tesla has just launched the Model Y All-Wheel-Drive, a new configuration, in the U.S. for $41,990
It has 294 miles of range, a 4.6s 0-60 MPH acceleration rate, and a 125 MPH top speed pic.twitter.com/cyd81m26vB
— TESLARATI (@Teslarati) February 3, 2026
The Model Y All-Wheel-Drive fits the bill of the “Standard” offerings of the vehicle that Tesla launched last year. It is void of many of the more luxurious features, which are available in the “Premium” trim levels, available in Rear-Wheel-Drive, All-Wheel-Drive, and Performance.
The differences between the Standard and Premium configurations can be found in the video below:
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
With five configurations now available in the Model Y, it certainly seems as if Tesla is attempting to get the vehicle available in more options than ever before.
With the Model S and Model X being removed from production due to their irrelevance to the future and Tesla’s focus on autonomy, diversifying the Model Y portfolio seems to align with the idea that the company is okay with making more variations of its most popular car.
Tesla Model Y Standard: first impressions from a Premium owner
Removing the Model S and Model X and replacing them with a new Model Y configuration is not exactly what fans have been wanting; many have been wondering what Tesla will do to replace the need for a bigger SUV for large families.
Nevertheless, Tesla’s relentless attitude toward solving autonomy and its preparation to launch a self-driving ride-hailing service seem to fit the bill for this move. Soon, it will be the Model 3, Model Y, and Cybercab playing the main parts of this autonomous future. The Cybertruck will be sticking around for other things, like local hauling.
SpaceX has officially acquired xAI, merging rockets with AI expertise in what is the first move to bring Elon Musk’s companies under one umbrella.
On February 2, SpaceX officially announced the acquisition of xAI, uniting two powerhouse companies under a single entity, creating what the space exploration company called in a blog post “one of the most ambitious, vertically integrated innovation engines on (and off) Earth.”
🚨 BREAKING: Elon Musk has posted a new blog on SpaceX’s website confirming the acquisition of xAI pic.twitter.com/TFgeHGMpXc
— TESLARATI (@Teslarati) February 2, 2026
The deal will integrate xAI’s advanced AI capabilities, including the Grok chatbot and massive training infrastructure, with SpaceX’s rocket technology, Starlink satellite network, and ambitious space exploration goals.
The acquisition comes at a pivotal moment: xAI is valued at around $230 billion as of late 2025, and has been racing to scale AI compute amid global competition from companies like OpenAI, Google, and Meta. Meanwhile, SpaceX, which was recently valued at $800 billion, is facing escalating costs for its multiplanetary ambitions.
By combining forces, the merged entity gains a unified approach to tackle one of AI’s biggest bottlenecks: the enormous energy and infrastructure demands of next-gen models.
Musk wrote in a blog post on SpaceX’s website that:
“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”
Musk details the need for orbital data centers, stating that his estimate is that “within 2 to 3 years, the lowest cost way to generate AI compute will be in space.
This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.”
SpaceX recently filed for approval from the FCC to launch up to one million solar-powered satellites configured as high-bandwidth, optically linked compute platforms.
These facilities would harness near-constant sunlight with minimal maintenance, delivering what the company projects as transformative efficiency.
Musk has long argued that space offers the ultimate solution for power-hungry AI projects. But that’s not all the merger will take care of.
Additionally, it positions the company to fund broader goals. Revenue from the Starlink expansion, potential SpaceX IPO, and AI-driven applications could accelerate the development of lunar bases, as Musk believes multiplanetary life will be crucial to saving civilization.
Critics question the feasibility of massive constellations amid orbital debris concerns and regulatory hurdles. Yet, proponents see it as a bold step toward a multiplanetary computing infrastructure that extends human civilization beyond Earth.
Tesla’s global fleet surpasses 9 million vehicles worldwide
Tesla launches new affordable Model Y configuration in the U.S.
