Volkswagen has a long and storied tradition of building world-class vehicles. While they have managed to make a legacy off of offering affordable, stylish, and effectively-performing models for 84 years, their next big challenge comes in the tall task of creating and engineering electric vehicles that are functional. While this sounds like an easy task for the legendary German car company, it has encountered several problems over the course of its MEB platform’s development. The narrative of the problem solving has changed several times in the past year.
The software issues for Volkswagen have been evident since the initial development of the ID. family of vehicles. Now, Volkswagen has been relatively transparent regarding the issues with its software in the past. Recently, there has been a trend, however, in how the company’s software project is being portrayed because for a while, Volkswagen was pawning off its software as “fixed.” It is obvious this isn’t the case.
Yesterday, a report came out that indicated CEO Herbert Diess was interested in keeping the software fixes in-house and that he wasn’t interested in having some other company, whether it be another automaker or a tech company, fix the issues they were encountering. It doesn’t seem like a great idea to push the software problems onto another company, especially if Volkswagen attempts to set the precedent that it is a leader in electric powertrains and EV manufacturing. The only real way to establish any sort of narrative that proves your worthiness in this sector is to solve things yourself, it seems. If Tesla had given its software issues early on to Apple or Microsoft, for example, to fix, you can bet they wouldn’t be looked at as some automotive marvel. They’d just be another company out there trying to establish a presence in a quickly growing field of EV competitors. The vertical integration that Tesla has been able to display, through not only its hardware but also through its development of software. The complete expertise in software especially is advantageous in the event of Software Updates being rolled out in an Over-the-Air fashion as Tesla does. When even the smallest bug or issue is revealed in the coding, engineers can quickly solve the problem and roll out a new update in a matter of minutes.
Diess is right, it is absolutely imperative that Volkswagen solves these issues in-house. However, there needs to be more consistency in the story that is being portrayed, in my opinion. For the past year, we’ve heard that Volkswagen has admitted Tesla has a 10-year advantage, then the ID.3 software issues were worse than initially reported, then that software was so bad it had moved onto other vehicles.
A big thanks to our long-time supporters and new subscribers! Thank you.
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
Then, all of a sudden, Volkswagen suddenly made Markus Duesmann, the ICE-supportive CEO of Audi, the person responsible for solving the software issues. Finally, the company came out in December and claimed that it had overcome all of the issues it had with the ID. family’s software.
It all seems like a plan to save face, and it should be. Volkswagen has held this reputation for years for making quality gas cars. Apart from the Dieselgate scandal, which inevitably tarnished the reputation of the company, Volkswagen has done a reasonably good job of creating cars that are dependable. My first car was a Volkswagen with 198,000 miles on it. It was dependable, and I was sad to see it go when I finally had to say goodbye.
However, it is quite alarming to see that Volkswagen is still years away from solving these issues. For a year, there have been so many different narratives regarding the company’s software, and it seems like a cause that perhaps just needs more time. There is no doubt in the world that they can figure it out eventually, but is it worth keeping the faith for five or ten more years? Is it worth waiting until 2025, 2030, or even longer to have effective electric vehicle software just to say “We developed it ourselves!”
It seems like the big issue coming to fruition now is the fact that Volkswagen has set another narrative forward that it will be ready to deliver software updates this Summer. All I have to say is, the electric vehicle community has a great memory, they are very unforgiving, and they don’t want to hear excuses. If Volkswagen cannot figure out a way to develop effective software for its vehicles by the Summer, roll out OTA updates, and provide proof that its vehicles are worth a damn, it may be time to consider other options.
Diess has a great relationship with Elon Musk, and it may not be too late to consider seeking help from Tesla in this sense. I don’t think it would be the worst thing in the world to have a guy who is your friend and the CEO of the most successful EV company in the world help your company solve some issues. Volkswagen would gain plenty of credibility with Tesla’s software infrastructure if it chooses to go that way. I hope they can somehow solve the issues in-house, but I am more prone to believe that if things don’t come around this Summer like VW has promised with the OTA updates, it will be a bad look once again, and VW could remain the laughing stock of the EV industry.
“If we want to retain our independence, 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,” Diess said. Is that a hill VW is willing to die on?
On behalf of the entire Teslarati team, we’re working hard behind the scenes on bringing you more personalized members benefits, and can’t thank you enough for your continued support!
Lifestyle
Tesla hit by Iranian missile debris in Israel
A Tesla in Israel absorbed a direct hit from missile debris, and the glassroof held.
On March 30, 2026, Lara Shusterman was in Netanya, Israel when Iranian ballistic missiles triggered air raid sirens across the city. While she remained in safety, her 2024 Tesla Model Y did not escape untouched. A heavy piece of missile debris struck the car’s massive glass roof, leaving a deep crater but without shattering. In a Facebook post to the Tesla Israel community the following morning, Shusterman described what happened: “The glass did not shatter into dangerous shards. She stopped the damage and pushed the metal part to the ground.” She closed by thanking Elon Musk and the Tesla team for building what she called “security and a sense of trust even in extreme situations.”
Netanya is a coastal city in central Israel, roughly 18 miles north of Tel Aviv and has been among the areas most frequently struck during Iran’s ongoing missile campaign, following coordinated U.S. and Israeli strikes on Iranian military infrastructure. Falling shrapnel from intercepted missiles is a common occurrence.
- Tesla Model Y glass roof shattered from a piece of falling Iranian missile debris
- A piece of Iranian missile debris that struck Lara Shusterman’s Tesla Model Y in Netanya, Israel on March 30, 2026, after being intercepted by Israeli air defenses.
- Tesla Model Y glass roof shattered from a piece of falling Iranian missile debris
The incident is a testament to Tesla’s structural engineering. Tesla’s glass roof is designed to support over four times the vehicle’s own weight. That strength has shown up in real-world accidents too. In 2021, a Model Y in California was struck by a falling tree during a storm, with the glass roof holding firm and the cabin remaining intact. In another widely reported incident, a Tesla Model Y plunged 250 feet off the cliff at Devil’s Slide in California in January 2023, with all four occupants, including two young children, surviving.
Disturbing details about Tesla’s 250-foot cliff drop emerge amid initial investigation
Tesla officially launched sales in Israel in early 2021 and captured over 60 percent of Israel’s EV market in the first year. The brand’s foothold in Israel remains significant. Tens of thousands of Teslas are now on Israeli roads, making incidents like Shusterman’s easy to corroborate. On the same week her Model Y took the hit, the U.S. Space Force awarded SpaceX a $178.5 million contract to launch missile tracking satellites, a separate but fitting reminder of how intertwined the Musk ecosystem has become with the realities of modern conflict.
Elon Musk
Elon Musk calls out $2 trillion SpaceX IPO valuation as ‘BS’
In a swift rebuke on X, Elon Musk dismissed reports claiming SpaceX had confidentially filed for an initial public offering targeting a valuation above $2 trillion, labeling the information as unreliable.
Elon Musk is quick to call out any false information regarding him or his companies on his social media platform, known as X.
A recent report that claimed SpaceX was aiming to go public with an IPO in the coming weeks at a massive valuation of $2 trillion was called out by Musk, who referred to it as “BS.”
In a swift rebuke on X, Elon Musk dismissed reports claiming SpaceX had confidentially filed for an initial public offering targeting a valuation above $2 trillion, labeling the information as unreliable.
The exchange highlights ongoing media speculation about the rocket company’s future and Musk’s frustration with what he views as inaccurate financial reporting. The report came from Bloomberg.
Don’t believe everything you read.
Bloomberg publishes bs.
— Elon Musk (@elonmusk) April 3, 2026
The controversy erupted on April 2, 2026, when influencer Mario Nawfal amplified claims from Bloomberg.
The outlet posted that SpaceX had boosted its IPO target valuation above $2 trillion, describing it as potentially one of the largest public offerings in history. Musk challenged the story.
It echoes past instances where Musk has corrected valuation rumors about his companies, emphasizing that speculation often outpaces reality.
Background context adds nuance.
Earlier reports indicated SpaceX had filed confidential IPO paperwork with the U.S. Securities and Exchange Commission, potentially positioning it for a record-breaking debut that could eclipse Saudi Aramco’s 2019 listing.
Initial estimates pegged a possible valuation north of $1.75 trillion, building on a post-merger figure around $1.25 trillion after SpaceX absorbed xAI. A subsequent Bloomberg update claimed advisers were floating figures above $2 trillion to investors, with the offering potentially raising up to $75 billion.
SpaceX remains a private powerhouse. Its achievements include thousands of Starlink satellites providing global broadband, routine Falcon 9 rocket reusability, and a mission to slash launch costs, along with ambitions for Starship to enable Mars colonization.
The company also benefits from government contracts with NASA and the Department of Defense. A public listing could democratize access for retail investors while subjecting SpaceX to greater scrutiny and quarterly reporting pressures.
Critics of the reports point to the confidential nature of filings, which limits verifiable details. Musk has previously downplayed inflated valuations, once calling an $800 billion figure for SpaceX “too high.”
Supporters argue that hype around mega-IPOs, especially amid the ongoing AI fervor, fuels premature narratives that distract from core technical milestones, such as full Starship reusability and Starlink constellation expansion.
The incident reflects broader tensions in tech finance. Anonymous sourcing in valuation stories can drive market chatter and betting activity, yet it risks misinformation.
Bloomberg defended its reporting through multiple articles citing “people familiar with the matter,” but Musk’s blunt dismissal resonated widely on X, with users piling on to question media reliability.
Whether SpaceX ultimately goes public remains uncertain. Musk has teased an IPO tied to Starlink maturity, but priorities center on engineering breakthroughs over Wall Street timelines. For now, the $2 trillion figure joins a list of rumored milestones that Musk insists should be taken with skepticism.
Elon Musk
Elon Musk reveals date of SpaceX Starship v3’s maiden voyage
The announcement arrives after Flight 11 on October 13 of last year, which concluded a busy 2025 testing campaign. Since then, SpaceX has focused on ground testing, including cryoproofing of Ship 39 and preparations for Booster 19, the first V3 Super Heavy.
SpaceX CEO Elon Musk has revealed the timeline for the next Starship launch. It will be the first launch using SpaceX’s revamped design for Starship, as its v3 rocket will take its maiden voyage sooner than many might expect.
Musk announced on April 3 on X that the next Starship flight test, and the first flight of the upgraded v3 ship and booster, is 4 to 6 weeks away. The update signals the end of a nearly six-month hiatus since the program’s last launch.
Elon says the first V3 Starship launch will occur in 4-6 weeks
It will be the first Starship launch since Flight 11 on October 13, 2025 https://t.co/QnnYPTdbUu
— TESLARATI (@Teslarati) April 3, 2026
The upcoming mission, designated as Starship’s 12 integrated flight test (IFT-12), marks a significant milestone. It will be the debut of the v3 configuration, featuring a taller Super Heavy Booster and Starship upper stage. The changes SpaceX has made with the v3 rocket and booster are an increased propellant capacity and the more powerful Raptor 3 engines.
Earlier predictions from Musk in March had pointed to an April timeframe, but the latest timeline now targets a launch window in early to mid-May 2026.
The V3 iteration represents a substantial evolution from previous Starship prototypes. Engineers have optimized the design for improved manufacturability, higher thrust, and greater efficiency. Raptor 3 engines deliver significantly more power while reducing weight and production costs compared to earlier variants.
With these enhancements, SpaceX aims to boost payload capacity toward 200 metric tons to low Earth orbit in a fully reusable configuration — a dramatic leap from the roughly 35-ton target of prior versions. Such capabilities are critical for ambitious goals, including NASA’s Artemis lunar missions and eventual crewed flights to Mars.
The announcement arrives after Flight 11 on October 13 of last year, which concluded a busy 2025 testing campaign. Since then, SpaceX has focused on ground testing, including cryoproofing of Ship 39 and preparations for Booster 19, the first V3 Super Heavy.
Recent activities have involved static fires, activation of the new Pad 2 at Starbase in Boca Chica, Texas, and integration of Raptor 3 engines.
A prior incident with an early V3 booster on the test stand in late 2025 contributed to the delay, necessitating additional assembly and qualification work.
Musk’s timeline updates have become a hallmark of the Starship program, often described with characteristic optimism.
SpaceX’s Starship V3 is almost ready and it will change space travel forever
While past targets have occasionally shifted by weeks, the rapid iteration pace remains impressive. However, don’t be surprised if this timeline shifts again, as Musk has been overly optimistic in the past with not only launches, but products under his other companies, too.
SpaceX continues to refine launch infrastructure, including new propellant loading systems and tower mechanisms designed to support higher cadence operations. A successful V3 flight could pave the way for more frequent tests, tower catches of both booster and ship, and progression toward operational reusability.
The v3 debut is viewed as a transition point for Starship, moving beyond experimental flights toward a system capable of supporting large-scale deployment of Starlink satellites, lunar landers, and interplanetary transport.
Success on IFT-12 would demonstrate not only the new hardware’s performance but also SpaceX’s ability to recover from setbacks and maintain momentum.
As the 4-to-6-week countdown begins, anticipation builds at Starbase. Teams are finalizing vehicle stacking, conducting final pre-flight checks, and preparing for regulatory approvals. The world will be watching to see if Starship V3 can deliver on its promise of transforming humanity’s access to space.



