Volkswagen of America has announced that it was delaying the launch of the ID.7 premium electric sedan in the United States. Initially, the ID.7 was planned for a US launch in Q3. Volkswagen dealers in the country, however, do not seem to be in any hurry to sell the upcoming EV.
As noted in a comment to Automotive News, John Luciano, a Volkswagen dealer in Texas and a member of the Volkswagen National Dealer Advisory Council, noted that most VW dealerships actually welcomed the ID.7’s delay. Luciano stated that during a meeting with Volkswagen, dealers expressed their concerns about consumer demand for the ID.7.
“We brought up a little bit of caution behind it. Are we sure this is a good idea? We didn’t know an exact pricing, but it’s definitely a $50,000 to $60,000 car without incentives. Is there any chance of it being competitive? And we felt like it’s not,” the Volkswagen dealer noted.
Luciano also hinted that Volkswagen dealers were a bit disappointed with the ID.7, which is a premium sedan. He noted that Volkswagen dealers had the impression that the ID.7 would be a vehicle that’s inspired by the ID Space Vizzion concept from 2019, which was futuristic, sleek, and spacious. When dealers saw the ID.7 last year, however, they were shown a sedan.
While the ID.7 features large back seats and ample cargo room, “it’s still pretty much a sedan,” Luciano noted.
Anthony Scala, another Volkswagen dealer from Chicago, echoed Luciano’s concerns. He observed minimal customer interest in the ID.7 compared to the upcoming ID.Buzz electric minivan, which is the spiritual successor to the iconic Volkswagen Microbus. In Scala’s view, a luxury electric sedan exceeding $50,000 would struggle to compete in a market that already has entries from Mercedes-Benz, Audi, and BMW.
“I just don’t think an expensive electric sedan is in the cards for most Americans right now. North of $50,000 for a sedan that doesn’t have the star logo, the ring logo, or the BMW logo? It’s a non-starter,” Scala noted.
Ultimately, Luciano noted that the timing wasn’t right for the ID.7, as launching the car in the United States now would have likely required notable investments to move inventory. The fact that the ID.7 is also built in Germany meant that the vehicle would not be able to qualify for the $7,500 federal tax credit.
“We would love to have more models. We have always wanted to have more models. But we need models that will actually get out into the market and work. But that wasn’t going to work with no incentives,” he said.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
Music City Loop could highlight The Boring Company’s real disruption
The real story behind the tunneling startup’s Nashville tunnel project is the company’s targeted $25 million per mile construction cost.
Recent commentary on social media has highlighted what could very well prove to be The Boring Company’s real disruption.
The analysis was shared by tech watcher Aakash Gupta on social media platform X, where he argued that the real story behind the tunneling startup’s Nashville tunnel project is the company’s targeted $25 million per mile construction cost.
According to Gupta’s breakdown, Nashville’s 2018 light rail proposal was priced at roughly $200 million per mile. New York’s East Side Access project reportedly cost about $3.5 billion per mile, while Los Angeles Metro expansion projects have approached $1 billion per mile.
By comparison, The Boring Company has stated it can construct 13 miles of twin tunnels in the Music City Loop for between $240 million and $300 million total. That implies a cost near $25 million per mile, or roughly a 95% reduction from industry averages cited in the post.
Several technical departures from conventional tunneling allow the Boring Company to lower its costs, from its smaller 12-foot diameter tunnels to its fully electric Prufrock machines that are designed to mine continuously with no personnel inside the tunnel and their capability to “porpoise” for easy launch and retrieval.
Tesla and Space CEO Elon Musk responded to the post on X, stating simply that “Tunnels are so underrated.”
The Boring Company has seen some momentum as of late, with the company recently signing a construction contract in Dubai and the Universal Orlando Loop progressing. Recent reports have also pointed to tunnels potentially being constructed to solve traffic congestion issues near the Giga Nevada area.
While The Boring Company’s tunnels have so far been used for Loop systems publicly for now, Elon Musk recently noted that the tunneling startup’s underground passages would not be limited only to ride-hailing vehicles.
In a reply to a post on X which discussed the specifications of the Music City Loop, Musk clarified that “any fully autonomous electric cars can use the tunnels.” This suggests that vehicles potentially running systems like FSD Supervised, even if they are not Teslas, could be used in systems like the Music City Loop in the future.
Elon Musk
SpaceX IPO could push Elon Musk’s net worth past $1 trillion: Polymarket
The estimates were shared by the official Polymarket Money account on social media platform X.
Recent projections have outlined how a potential $1.75 trillion SpaceX IPO could generate historic returns for early investors. The projections suggest the offering would not only become the largest IPO in history but could also result in unprecedented windfalls for some of the company’s key investors.
The estimates were shared by the official Polymarket Money account on social media platform X.
As noted in a Polymarket Money analysis, Elon Musk invested $100 million into SpaceX in 2002 and currently owns approximately 42% of the company. At a $1.75 trillion valuation following SpaceX’s potential $1.75 trillion IPO, that stake would be worth roughly $735 billion.
Such a figure would dramatically expand Musk’s net worth. When combined with his holdings in Tesla Inc. and other ventures, a public debut at that level could position him as the world’s first trillionaire, depending on market conditions at the time of listing.
The Bloomberg Billionaires Index currently lists Elon Musk with a net worth of $666 billion, though a notable portion of this is tied to his TSLA stock. Tesla currently holds a market cap of $1.51 trillion, and Elon Musk’s currently holds about 13% to 15% of the company’s outstanding common stock.
Founders Fund, co-founded by Peter Thiel, invested $20 million in SpaceX in 2008. Polymarket Money estimates the firm owns between 1.5% and 3% of the private space company. At a $1.75 trillion valuation, that range would translate to approximately $26.25 billion to $52.5 billion in value.
That return would represent one of the most significant venture capital outcomes in modern Silicon Valley history, with a growth of 131,150% to 262,400%.
Alphabet Inc., Google’s parent company, invested $900 million into SpaceX in 2015 and is estimated to hold between 6% and 7% of the private space firm. At the projected IPO valuation, that stake could be worth between $105 billion and $122.5 billion. That’s a growth of 11,566% to 14,455%.
Other major backers highlighted in the post include Fidelity Investments, Baillie Gifford, Valor Equity Partners, Bank of America, and Andreessen Horowitz, each potentially sitting on multibillion-dollar gains.
News
Tesla expands global FSD (Supervised) testing with Abu Dhabi trials
The program marks the emirate’s first formal testing framework for Tesla’s supervised autonomous driving technology.
Tesla has started its first Full Self-Driving (Supervised) road trials in Abu Dhabi under the oversight of the Integrated Transport Centre, also known as Abu Dhabi Mobility.
The program marks the emirate’s first formal testing framework for Tesla’s supervised autonomous driving technology.
FSD (Supervised) road trials are being conducted with the support of the Smart and Autonomous Systems Council and in coordination with the Legislation Lab at the General Secretariat of the UAE Cabinet.
Dr. Abdulla Hamad AlGhfeli, Acting Director General of the Integrated Transport Centre (Abu Dhabi Mobility), highlighted the agency’s regulatory role in overseeing the FSD (Supervised) tests in a press release.
“The supervision of the Integrated Transport Centre (Abu Dhabi Mobility) over the commencement of Tesla’s advanced autonomous driving technology tests reflects its regulatory and legislative role. These tests represent a qualitative step to evaluate the technology’s performance in a real-world operating environment and to collect the necessary data to verify its readiness before any future expansion in usage.
“Through this organized framework, and in cooperation with strategic partners, we seek to achieve a balance between supporting innovation and encouraging the adoption of smart solutions on one hand and ensuring the safety of road users on the other, in line with the emirate’s direction to develop an advanced, safe, and sustainable transport system,” he said.
Tesla is putting a lot of effort into expanding the rollout of FSD (Supervised) to territories outside in the United States. During a recent interview with Giga Berlin plant manager Andre Thierig, Musk stated that Tesla is looking to secure approval for FSD (Supervised) in the Netherlands this coming March.
“Tesla has the most advanced real-world AI, and hopefully, it will be approved soon in Europe. We’re told by the authorities that March 20th, it’ll be approved in the Netherlands,’ what I was told. Hopefully, that date remains the same. But I think people in Europe are going to be pretty blown away by how good the Tesla car AI is in being able to drive,” Musk stated.
Music City Loop could highlight The Boring Company’s real disruption
SpaceX IPO could push Elon Musk’s net worth past $1 trillion: Polymarket
