News
Volkswagen is taking the Tesla approach by shifting its EV focus on software
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.
“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.
Elon Musk
Elon Musk estimates Tesla Semi could reach Europe next year
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.
Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.
Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.
Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.
Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.
Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.
The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets.
Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.
Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Elon Musk estimates Tesla Semi could reach Europe next year
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
