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Volkswagen scraps ICE production at German plant in favor of EVs

Credit: Volkswagen

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German automaker Volkswagen has built its final internal-combustion engine vehicle at its Zwickau plant in Mosel, Germany in an effort to transition to the production of electric cars. The production facility will now only produce EVs for Volkswagen, Audi, and Seat.

Volkswagen has been vocal about its intentions to eliminate gas-powered cars in its fleet, working toward developing a sustainable lineup of exclusively battery-powered vehicles. The German automaker took a giant step toward sustainability today after the final combustion engine left the assembly line the Zwickau car factory, the company announced in a press release.

“Today is a historic day for us,” Reinhard de Vries, Managing Director of Technology and Logistics at Volkswagen Sachsen, said. “We are proud of what we have achieved so far, and at the same time are greatly looking forward to what the future holds for us. The trend towards electric mobility will continue to pick up speed. We will meet this demand from Zwickau: we have already created the capacity to build 330,000 vehicles next year.”

Volkswagen’s next plans for the Zwickau factory include an expansion that will increase the annual production rate from around 200,000 cars to over 300,000. The company has already started expanding portions of the Zwickau production facility, and Volkswagen plans to be finished the project sometime this Summer. The company will begin producing its first electric vehicles at Zwickau by the end of the year, starting with the ID.4 and an SUV from VW’s sister brand, Audi.

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Currently, the company’s ID.3 is already rolling off production lines at Volkwagen’s West Saxony plant.

(Credit: Volkswagen)

Since Zwickau’s production lines became active in 1990, 6,049,207 Volkswagen models have been built at the facility. The Polo, Golf, Golf Estate, Passat Saloon, and Passat Variant configurations of the German automaker’s vehicles have been made at Zwickau since September 1990.

Volkswagen’s focus is now on the electrification of its fleet as it looks to continue a tradition of automotive excellence, Chairman of the General Works Council Jens Rothe said. “Zwickau is steeped in German automotive tradition. Our team has always delivered excellent performance and built vehicles with excellent quality. We have gained the trust in the Group to become the first location to start fully electric large-scale series production.”

The 8,000 employees who currently work at the Zwickau facility will be trained and certified in “handling high-voltage systems as a part of various training measures,” Volkswagen said. The focus with Zwickau employees was to help them adapt to the new infrastructure and not require any replacements or furloughs as a result of the updated goals at the plant. The team will complete 20,500 days of training by the end of the year that will ensure long-term job security for the current employees of the plant.

Even though Volkswagen’s push to electrification started in Saxony with the ID.3, the German giant’s intentions to begin transitioning its fellow plants to build only electric models indicates the company is all-in on a sustainable future. The company seems ready to put its Dieselgate scandal in its rearview mirror and purely focus on its sustainably-focused future.

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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 China posts strong February wholesale growth at Gigafactory Shanghai

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

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Credit: Grace Tao/Weibo

Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.

The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.

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Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.

Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.

The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.

Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.

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Tesla Model Y L spotted on transport trucks in Australia

One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier. 

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Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.

One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier. 

The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.

The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.

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Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.

The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.

Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.

Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.

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Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.

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Elon Musk shares timeframe for X Money early public access rollout

X Money is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.

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Credit: UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk has stated that X Money, the digital payments system being developed for social media platform X, is expected to enter early public access next month. 

The update was shared by Musk in a post on X. “𝕏 Money early public access will launch next month,” Musk wrote in his post.

As noted in a Reuters report, X Money is being developed as a digital payment service that’s directly integrated into the X platform. 

The system is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.

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Musk has previously discussed plans to introduce payments and financial services as part of X’s broader development.

Since acquiring the platform in 2022, Musk has discussed expanding X to include a range of services such as messaging, media, and financial tools.

Elon Musk has shared his goal of transforming X into an “everything app.” During a previous podcast interview with members of the Tesla community, Musk mused about turning X into something similar to China’s WeChat, which allows users to shop, pay, communicate, and perform a variety of other tasks.

“In China, you do everything in WeChat… it’s kickass… Outside of China, there’s nothing like it, people live on one app. My idea would be like how about if we just copy WeChat,” Musk joked at the time.

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To prepare for the rollout of X Money, X has partnered with payment company Visa to support the development of payment services for the platform’s users. The move could allow X to tap into the growing demand for digital and in-app financial transactions as the company builds additional services around its existing user base.

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