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Volkswagen takes a page from Tesla’s automation playbook in transition to e-mobility

Credit: Volkswagen

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Volkswagen has drawn inspiration from Tesla in many ways, especially in its quest to transition to a lineup of fully-electric vehicles. But the German automaker plans to take another piece from Tesla’s playbook under the manufacturing chapter with an adoption of automation in several of its production facilities.

The German Volkswagen has already started to attempt its transition to all-electric cars with its ID.3 and ID.4 EVs, along with a little-known model known as the ID.BUZZ. However, the company is now turning its focus to less on the product and more about the process, installing over 2,200 robots at three of its plants to help with production efforts, it said in a press release.

German plants in Emden and Hanover and the American Chattanooga plants are both being outfitted with machines that will automate its EVs’ production process. Ordering 1,400 robots from Japanese manufacturer FANUC for the Emden and Chattanooga plants and 800 from Swiss company ABB for the Hanover plant, Volkswagen will work to improve the manufacturing processes of its future fleet of sustainable cars. Perhaps, Tesla’s focus on manufacturing, which has partially led to the company maintaining a sizeable lead over other companies in the sector, could have inspired Volkswagen to focus on how its cars are made on the lines.

Volkswagen’s Member of the Board of Management of the Volkswagen brand responsible for Production and Logistics, Christian Vollmer, said, “At Emden and Chattanooga, we are developing two of the most advanced production facilities in the automotive industry for the transformation to e-mobility. We are investing in the latest technologies such as digitalization and automation for this purpose, even in the present situation.”

Interestingly, Tesla has been extremely vocal about its focus on automation and manufacturing processes for several years. CEO Elon Musk has been the main proponent behind the company’s focus on making the manufacturing process more efficient than ever before, believing that figuring out production could put Tesla “head and shoulders” above other companies.

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Eventually, Musk believes that Tesla will no longer have superior EV tech. Everyone will make long-range, high-performance EVs, but how they are made is what will set the companies apart from one another.

“Eventually, every car company will have long-range electric cars. Eventually, every company will have autonomy. But not every company will be great at manufacturing. Tesla will be absolutely head and shoulders above anyone else in manufacturing. That is our goal,” Musk said at the company’s Shareholder Event and Battery Day in September.

Musk and Volkswagen Chairman of the Management Board Herbert Diess are friendly with one another, and Musk even stopped by VW’s unofficial Airport in Braunschweig to test drive the ID.3. Volkswagen must know that Tesla is doing something right, and to have more of the American automaker’s strategies in place puts them in prime position to strengthen their presence in the global EV market.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Q3 2025 earnings: What analysts expect

The automaker delivered a record 497,099 vehicles and logged its highest-ever energy storage sales in Q3 2025. 

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Credit: Tesla China

Tesla’s (NASDAQ:TSLA) Q3 2025 earnings, which would be released after markets close today, could prove to be a test of confidence for the company’s shareholders. 

The automaker delivered a record 497,099 vehicles and logged its highest-ever energy storage sales, but analysts noted that these gains might have come at a cost. 

Record vehicle deliveries

Tesla’s profit per share is expected to fall about 25% year over year to around $0.53–$0.55, even as revenue rises from 4% to 6%, as noted in a report from Market Pulse. Analysts noted that Tesla’s record quarter was partly fueled by buyers rushing to complete purchases before the U.S. federal EV tax credit expired in September, a surge that could dampen Q4 demand. The company also dipped into its inventory to reach the record delivery number.

Analysts expect automotive gross margin (excluding regulatory credits) to land between a conservative 16.5% and 17%. This suggests that a good portion of Tesla’s Q3 delivery growth came from aggressive price cuts. If margins fall below 16.5%, it could hint at more cost pressures that the company would have to handle in the coming months.

Tesla’s Energy segment, meanwhile, is expected to act as a stabilizer. The business deployed 12.5 GWh of storage in Q3, driven by strong demand from AI data centers. Analysts expect this high-margin division to partially cushion the hit from the automaker’s thinner car profits.

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AI, FSD, and Musk’s role

Tesla’s lofty valuation, trading about 17% above the average analyst consensus of $365, would likely depend heavily on investor belief in its AI and robotics initiatives. Industry watchers have stated that management must deliver credible updates on Full Self-Driving and the Robotaxi program to help justify the company’s current valuation.

Elon Musk’s proposed 2025 CEO Performance Award, which proxy advisors have urged shareholders to reject, would likely be discussed in the Q3 2025 earnings call has well. Musk has hinted that a failed vote could jeopardize Tesla’s AI strategy, making the company’s upcoming results quite crucial for market confidence.

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Tesla Board Chair defends Elon Musk’s pay plan, slams proxy advisors

The letter comes ahead of Tesla’s 2025 Annual Meeting, where shareholders will vote on several key proposals.

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CeBIT Australia, CC BY 2.0 , via Wikimedia Commons

Tesla Chair Robyn Denholm has issued a strongly worded letter urging investors to reject the latest recommendations from proxy advisory firms ISS and Glass Lewis, saying their “one-size-fits-all” approach fails to recognize Tesla’s unique business model and track record. 

The letter comes ahead of Tesla’s 2025 Annual Meeting, where shareholders will vote on several key proposals including Elon Musk’s 2025 CEO Performance Award and director reelections.

Tesla slams proxy advisors’ models

Denholm criticized both firms for consistently opposing Tesla’s growth-oriented plans, noting that the company’s market capitalization has increased twentyfold since shareholders approved Musk’s 2018 performance package, which both advisors had opposed at the time. 

“Our shareholders have ignored their recommendations, and it’s a good thing they did,” she wrote. “Otherwise, you may have missed out on our market capitalization soaring 20x while the proxy advisors time and time again recommended “against” Tesla proposals designed to promote the sort of extraordinary growth we have enjoyed.”

The letter argued that Glass Lewis and ISS use robotic policies that don’t account for Tesla’s innovation-driven structure. Tesla’s leadership maintained that the 2025 CEO Performance Award will only reward Musk if he achieves extraordinary market capitalization and operational goals. The plan, Denholm stated, aligns Musk’s incentives with long-term shareholder interests.

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Tesla defends board leadership

Denholm also defended directors Ira Ehrenpreis and Kathleen Wilson-Thompson, calling them pivotal to Tesla’s governance and innovation strategy. She said both have driven Tesla’s growth and helped design compensation systems vital to competing in the AI and robotics talent race.

She warned that following ISS and Glass Lewis could turn Tesla into “just another car company,” and urged shareholders to “vote yes to robots, and reject robotic voting.” The letter also highlighted that neither ISS nor Glass Lewis owns Tesla stock, emphasizing that only shareholders “who have made an actual financial investment” should decide the company’s direction.

“If you prefer that Tesla turn into just another car company mired in the ways of the past, then you should follow ISS and Glass Lewis. If you believe that Tesla, under the visionary leadership of Elon and the oversight of a Board that includes business leaders with integrity like Ira, Kathleen and Joe, then you should vote with Tesla,” Denholm wrote.

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Tesla Model S and Model X make a comeback in Europe

The updates inside and under the surface of the new Model S and Model X are meaningful.

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Credit: Tesla Europe & Middle East

Tesla’s luxury flagships are making a comeback in Europe. After disappearing from Tesla’s online configurator in July, the Model S and Model X are once again available to order across the region. 

Deliveries are set to begin in November, with the Model S priced from €109,990 and the Model X starting at €114,990. The update brings improved comfort, reduced cabin noise, and efficiency improvements to the two veteran EVs.

A subtle refresh

Tesla’s design team made only light exterior changes, but the updates inside and under the surface of the new Model S and Model X are meaningful. The refreshed Model S and Model X now feature upgraded insulation, enhanced active noise cancellation, and retuned air suspension to make the ride smoother and quieter. 

New 19- or 21-inch wheels and ambient interior lighting add a subtle modern touch to the two flagships, while the Model X’s third-row seating has been improved with more space for occupants, Tesla Europe and Middle East noted in a post on X.

Both vehicles gained adaptive headlights, blind-spot warning lights, and a standard front camera. Efficiency has also improved thanks to new aerodynamic rims and low-rolling-resistance tires. The Model S now boasts a WLTP range of 744 kilometers, while the heavier Model X can travel up to 600 kilometers on a single charge.

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Tesla’s performance flagship

The Model S Plaid, Tesla’s performance flagship, benefits from deeper upgrades in this cycle. The vehicle now features a redesigned front fascia and a new front splitter. Its rear aprons have also been updated, and it has been given a carbon rear spoiler and diffuser to enhance high-speed stability. 

Underneath, the drive rotors receive carbon sleeves for better performance under extreme loads. The Plaid sprints from zero to 100 kph in just 2.1 seconds and can reach 322 kph with optional ceramic brakes, while maintaining an impressive 611-kilometer range. Considering its performance figures, the Model S Plaid has once again become the market’s best bang-for-the-buck flagship performance car. 

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