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Volkswagen, a rocky $50B EV bet, and the bid to chase Tesla’s software prowess
Among the old guard of the automotive industry, very few could hold a candle to Volkswagen, which has initiated a $50 billion bet on electric vehicles. The plan, it seemed, was aimed at ensuring that the veteran automaker could catch up to Tesla, a dedicated EV maker that has made a name for itself by releasing vehicles that receive over-the-air updates on a regular basis.
Yet as the first result of Volkswagenâs dedicated EV efforts, the ID.3, rolled off the assembly line, it became clear that releasing software-driven electric cars was not as simple as building the next iteration of the Golf. When the ID.3 was released, the vehicle was incomplete. It could drive, turn corners, and basically do anything that regular cars are expected to do. Software-wise, however, it was nowhere near done. Features that were promised were absent, and promised capabilities such as over-the-air updates were unavailable.Â
Even the ID.3âs heads-up display, a feature that is not present in rivals like the Model 3, didnât function. Early users of the vehicle also reported hundreds of software bugs. By June last year, Volkswagen decided to delay the ID.3âs launch and sell the first batch of the cars without full software. The vehicles are expected to receive an update that would provide the ID.3 with its full feature set, but the initiative will require a service visit around February 2021.
As noted in a report from The Wall Street Journal, Volkswagenâs issues with the ID.3 were the result of the veteran automaker not being proficient in software. For years, industry analysts and leaders alike have suggested and peddled the âTesla Killerâ narrative, suggesting that once the big players of the auto industry get serious about electric vehicles, Elon Muskâs EV startup would be completely overrun. As it turned out, building electric cars was not as simple. Just because a company can produce good gas and diesel-powered cars does not mean that they can produce good EVs.Â
Karsten Michels, a senior engineer for Continental AG, one of the firms which Volkswagen tapped to develop the ID.3âs software, noted that the gravity of the task surrounding the development of custom vehicle software was underestimated. âMaybe we underestimated how much work is involved and how little we could actually rely on existing legacy software,â Michels said.Â
Peter Rawlinson, CEO of Lucid Motors, expressed his thoughts on the situation. â(Ever since Tesla launched its first car in 2008) there was this feeling that the really serious players are going to come. Now, the Germans have finally come, and theyâre not as good as Tesla,â he remarked.
Volkswagen, for its part, seems to be taking the lessons it learned during the ID.3 rollout and is applying it for the release of the ID.4, a crossover SUV that could rival the Tesla Model Y. Herbert Diess, the Chairman of the Board of Management of Volkswagen Group and an executive who has struck a friendship of sorts with Tesla CEO Elon Musk, initiated efforts to overhaul the companyâs software strategies. If successful, the ID.4, which will be produced in Europe, China, and the United States, would deliver on the promises set forth by the ID.3.Â
Ultimately, Volkswagen has learned a notable yet painful lesson during the ramp of the ID.3, the most notable of which is that software is something that legacy automakers still need to work on. Granted, software has been running in gas-powered cars for years, with average vehicles including dozens of parts with chips that are designed to perform specific tasks. EVs, however, require a different type of software, one that is more akin to those used by smartphones today. With electric cars, in-vehicle software becomes the heart of the vehicle, with updates becoming the equivalent of service visits in a gas-powered car. In-vehicle software today is never complete as well, as they must always be open to improvements.
Danny Shapiro, senior director of automotive at Nvidia, related his thoughts on the complexity of in-vehicle software. âThe key here is taking this distributed system in the car, dozens if not hundreds of applications, and centralizing everything. This is very complex, especially with a car where the safety level is critical. You canât just flip a switch and be a software company,â he noted.
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Tesla FSD successfully completes full coast-to-coast drive with zero interventions
Tesla community members celebrated the milestone on X, and the feat earned praise from some of the electric vehicle makerâs executives.
A Tesla owner has successfully completed a full coast-to-coast drive across the United States on Full Self-Driving (FSD) Supervised. The trip was accomplished with zero interventions.
Tesla community members celebrated the milestone on X, and the feat earned praise from some of the electric vehicle makerâs executives.
FSD Coast-to-Coast
The coast-to-coast feat was accomplished by Tesla owner Davis Moss, who drives a stealth gray Model 3 with AI4 hardware. Based on data from the FSD database and a community tracker, the last 10,638.8 miles Moss drove in his Model 3 were completed using FSD 100% of the time. His vehicle is equipped with FSD v14.2.1.25, which was installed 12 days ago.
As per Moss in a celebratory post on X, his Model 3 was able to complete a full coast-to-coast drive across the United States in 2 days and 20 hours. His trip started at the Tesla Diner in Los Angeles, CA, and it ended in Myrtle Beach, SC. Overall, his trip spanned 2,732.4 miles.Â
âThis was accomplished with Tesla FSD V14.2 with absolutely 0 disengagements of any kind even for all parking including at Tesla Superchargers,â Moss stated in his post. He also added in later comments that there were zero close calls during the trip.
Tesla community celebrates
The FSD milestone trip was widely lauded by members of the Tesla community, especially since a coast-to-coast drive with zero interventions has been cited by Elon Musk as a target since October 2016, when Autopilot 2.0 was unveiled. At the time, Musk initially estimated that a coast-to-coast drive across the United States should be possible by the end of 2017. Considering Mossâ feat in his Model 3, it appears that Elon Muskâs estimate was not impossible at all. It was just late.
Musk himself celebrated the milestone on X, and so did Tesla VP of AI Software Ashok Elluswamy, who wrote âWorldâs first fully autonomous coast-to-coast drive, done with Tesla self-driving v14. Congrats and thank you @DavidMoss!â in a post on X. The official Tesla North America account also celebrated the feat, writing âFirst Tesla to drive itself from coast to coast w/ FSD Supervised. 0 interventions, all FSDâ on X.
Elon Musk
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla.Â
Elon Musk has announced that the Tesla Model Y has become the world’s best-selling car by volume for the third consecutive year, capping 2025 with another dominant performance.Â
The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla.Â
Three years in a row
Musk posted on X: “Tesla Model Y is now officially the worldâs best-selling car for the third year in a row!” The CEOâs comment echoed an update that Tesla included in its 2025 recap, which highlighted, among other things, the Model Yâs incredible streak.Â
The Model Y has held the title since 2023, outperforming traditional leaders like the Toyota RAV4 and Corolla thanks to its bang-for-the-buck nature and its stellar combination of practicality, performance, and tech. The Model Y is also lauded as one of the safest vehicles on the road, making it an ideal choice for families in key markets such as China.
An impressive 2025
The Model Yâs sales feat in 2025 is especially impressive considering the introduction of the vehicleâs new variant. Teslaâs changeover to the new Model Y across its global factories resulted in sales being paused for some time in the first quarter. As per Teslaâs Q1 2025 vehicle delivery and production report, âthe changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1.âÂ
This suggests that the Model Yâs sales remained strong in 2025 to the point where it could still claim the title of the worldâs best-selling vehicle by volume, even with its sales being throttled during the first quarter of the year. It would then be interesting to see just how far the Model Y can go in 2026, especially considering the rollout of new variants like the six-seat extended wheelbase Model Y L, the affordable Model Y Standard, and the top-tier Model Y Performance.
News
Tesla shares epic 2025 recap video, confirms start of Cybercab production
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development.
Tesla has released an epic year-in-review video for 2025, recapping some of its major achievements from refreshed models to autonomy breakthroughs and production ramps.
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development while looking ahead to an even bigger 2026.
Teslaâs 2025 highlights recap
Tesla has had a busy 2025, as highlighted in the recap video. The video opened with Elon Musk explaining the companyâs pursuit of sustainable abundance. A number of milestones were then highlighted, such as the rollout of FSD v14, Optimusâ numerous demos, the opening of the Tesla Diner in Hollywood, LA, the completion of the worldâs first autonomous car delivery, and the launch of the Robotaxi network in Austin and the San Francisco Bay Area.
Tesla also highlighted several of its accomplishments over the year. As per the company, the Model Y was the yearâs best-selling vehicle globally again, and Teslas became more affordable than ever thanks to the Model 3 and Model Y Standard. Other key models were also rolled out, such as the refreshed Model S and X, as well as the new Model Y, the new Model Y Performance, and the six-seat, extended wheelbase Model Y L.Â
The Megablock was also unveiled during the year, and the Supercharger Network grew by 18%. Over 1 million Powerwalls were also installed during the year, and the Cybertruck became the first EV truck to get both an IIHS Top Safety Pick+ award and an NHTSA 5-Star safety rating.
Cybercab production confirmed
Interestingly enough, Tesla also confirmed in its 2025 recap video that the production of the Cybercab has started. This bodes well for the vehicle, as it could result in the vehicle really being mass-produced in the first half of 2026. Elon Musk confirmed during the 2025 Annual Shareholder Meeting that Cybercab production should earnestly start around April 2026.Â
Musk has also noted that the Cybercab will be Teslaâs highest-volume vehicle yet, with the company aiming for an annual production rate of about 2 million units. âIf youâve seen the design of the Cybercab line, it doesnât look like a normal car manufacturing line,â Musk said earlier this year. âIt looks like a really high-speed consumer electronics line. In fact, the line will move so fast that actually people canât even get close to it.â
Tesla FSD successfully completes full coast-to-coast drive with zero interventions
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
