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Volkswagen is taking the Tesla approach by shifting its EV focus on software

(Credit: Joe Black/Instagram )

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After the difficulties it faced with software glitches in the ID.3 and the 8th-generation Golf, Volkswagen appears to have shifted its priorities from simply producing electric cars at scale to developing software for its upcoming lineup of vehicles. The shift was evident in the German auto giant’s 150 billion-euro ($178 billion) five-year investment plan, which lists a massive increase in spending on digital technologies. 

Automotive News Europe, citing a source from within the German carmaker, stated that the Volkswagen is “raising the tempo” when it comes to software. The reason for this is simple: the company’s needs in software are greater than its needs in other areas, as represented by the massive issues that plagued the ID.3. Under the new five-year plan, Volkswagen will be increasing its funding for software development to 27 billion euros, double the amount proposed last year. 

Included in this software push is an initiative to increase the amount of work done in-house. Currently, only about 10% of Volkswagen’s software is developed within the company, but with the new plan, this number is expected to increase to 60%. This approach is quite similar to Tesla’s, albeit tempered down, as the American electric car maker develops its vehicles’ own software in-house. Tesla’s vertical integration is so notable that the company designs the chips used in its vehicles’ Autopilot computer as well. 

VW Group CEO Herbert Diess has admitted that the shift towards becoming a digital company capable of operating millions of connected “mobility devices” is more challenging than the shift to electric vehicles. While presenting at the Handelsblatt automotive summit earlier this month, Diess highlighted this point by describing his previous meeting with Elon Musk, which involved the two executives taking a test drive on the ID.3 with the Tesla CEO at the wheel. 

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“The price point with which the car goes to market impressed him. He immediately reacted with a very aggressive cost approach to the battery.” Diess also highlighted that Volkswagen still had a lot of ground to make up, in particular when it comes to continually improving the vehicles after they’re sold via improved software pushed to the vehicles over the air. 

Diess also talked about plans to use over-the-air updates for its family of vehicles. Amidst Volkswagen’s current efforts, the VW Group CEO expects the veteran carmaker to offer over-the-air updates at the same extent and pace as Tesla today in a few years. “The new ID vehicles will receive the first updates next year, then we need to increase the pace. By 2023 and 2024 we want to be in the position to offer OTA updates to the same extent as Tesla does today,” he said. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Cybertruck

Tesla Cybertruck chosen by Kazakhstan’s elite security force: here’s why

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Tesla Cybertruck was chosen by a Middle Eastern government agency because of its capability, safety, and other advantages that it offers over traditional pickups.

In a striking display of futuristic security technology, Kazakhstan’s State Guard Service has integrated Tesla Cybertrucks as mobile command-and-control vehicles for the Informal Summit of the Organization of Turkic States, held today in Turkistan.

The deployment, announced by Teslarati on May 14, marks one of the first known instances worldwide of the electric pickup truck being used in official state security operations.

The Cybertrucks are supporting a range of real-world tasks, including rapid response, field coordination, communications, and command functions.

Officials highlighted the vehicles’ suitability for the challenging mountainous terrain around Almaty, where superior off-road mobility allows them to navigate rugged landscapes that might challenge conventional vehicles. Their quiet electric operation enables discreet deployment, while the high onboard power output provides sustained energy for communications equipment and external devices—critical during a high-profile international gathering.

The summit brings together leaders from Turkic-speaking nations to discuss cooperation in politics, economy, and culture. Against this backdrop, the Cybertrucks stand out not only for their angular, stainless-steel exoskeleton and imposing presence but also for their practical advantages in modern security protocols.

This move underscores Kazakhstan’s push toward innovative and sustainable solutions in public safety. The Cybertruck, Tesla’s rugged all-electric pickup, was designed from the ground up for versatility, boasting impressive range, durability, and power capabilities that align well with governmental needs.

By choosing the vehicle, Kazakh authorities signal confidence in electric mobility even for demanding operational roles—potentially setting a precedent for other nations exploring green alternatives to traditional fleet vehicles.

Tesla Cybertruck too safe for even Musk’s biggest critics to ignore

As the summit unfolds on May 15, the presence of Cybertrucks symbolizes a broader shift: electric vehicles transitioning from consumer roads to critical infrastructure.

For Tesla, the development offers valuable real-world validation of the Cybertruck’s capabilities beyond civilian use. For Kazakhstan, it blends cutting-edge American engineering with national security priorities, creating a memorable visual and functional statement at this landmark regional event.

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Tesla grabs massive Las Vegas warehouse for interesting Cybercab project

Tesla quietly filed plans to build the Cybercab car wash, and on May 12, the company submitted a permit to begin renovating the “Tesla Center Cybercab Phase 2 Car Wash,” documents show.

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Credit: TechOperator | X

Tesla is beginning to construct what will be an incredibly unique project, as it is now building a 36,000-square-foot car wash just for the Cybercab in Clark County, Nevada, near Las Vegas.

Tesla quietly filed plans to build the Cybercab car wash, and on May 12, the company submitted a permit to begin renovating the “Tesla Center Cybercab Phase 2 Car Wash,” documents show.

This is not just some ordinary car wash. Instead, it’s a dedicated, high-tech maintenance hub built specifically for Tesla’s ride-hailing vehicle and the many units that will be in the fleet.

According to the permit documents, which were first spotted by MarcoRP, a Supercharger observer on X, the work involves upgrading and updating the interior and exterior of an existing 36,000-square-foot facility. Crews will construct a full car-wash enclosure, relocate tire-service equipment, and install new power raceways.

Every camera on a Tesla Cybercab must stay clean, and without a human driver to perform manual maintenance on the vehicle, this Cybercab-specific car wash will be crucial in keeping the fleet operational, safe, and effective.

Tesla has spent years perfecting unsupervised FSD, and the Cybercab – unveiled last year as a driverless, two-seater purpose-built for ride-hailing – is the physical embodiment of that vision. Industry skeptics have long questioned how a massive Robotaxi network could scale without drivers handling basic upkeep.

Tesla just answered them with a permit filing. Sources close to the project suggest this could be the first of several such hubs, with whispers of similar plans already surfacing in Texas.

A purpose-built Robotaxi wash station means fleets can cycle vehicles through cleaning, charging, and minor servicing at lightning speed with almost no human intervention. Optimus robots could eventually handle the physical work, turning the entire operation into a lights-out, 24/7 machine.

Las Vegas, with its endless tourist traffic and wide-open roads, is the perfect proving ground. Imagine stepping out of a gleaming Cybercab after a night on the Strip, knowing the same vehicle will be sparkling clean and ready for the next rider within minutes.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Critics who claimed Robotaxis would get filthy and unreliable now look shortsighted. However, it will be interesting to see how many of these types of facilities the company establishes, especially as it plans for the Robotaxi fleet to be available everywhere.

If the permit moves forward as expected, Las Vegas could witness the first large-scale, fully autonomous taxi operation complete with its own cleaning infrastructure. As soon as Tesla solves wireless charging, we’re looking at a very capable and potentially fully autonomous ride-sharing business from A to Z.

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Tesla puts Giga Berlin in Plaid Mode with new massive investment

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

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Credit: Tesla

Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.

The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.

The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.

Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.

Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.

The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.

With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.

As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.

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