Connect with us

News

Volkswagen’s new EV focus combines customer needs with affordability

Credit: Volkswagen

Published

on

Volkswagen has honed in on the strategy it will use to increase the adoption of electric vehicles and become a main player in the sector, which has become more competitive over the years.

In 2027, Volkswagen Group said it would launch a lineup of entry-level and affordably priced electric vehicles under the Brand Group Core. The launch is planned for Europe and will be the culmination of years of efforts.

“Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility,” Oliver Blume, CEO of VW Group and head of Brand Group Core, said. “As a group with strong brands, we continue to assume this social responsibility to this day. That’s why I’m very pleased that we’re launching a future-oriented project. It’s about entry-level electric mobility from Europe for Europe.”

Yesterday, we reported on one of Stellantis’s ideas for increasing EV adoption: creating an affordable EV under the Jeep brand, which has a loyal following.

Advertisement

Stellantis CEO confirms $25k Jeep EV — and it’s coming sooner than you think

Volkswagen is planning a more spirited effort by launching several models under its numerous brands.

Affordability will get more people thinking about an EV for their next purchase. One of the biggest bottlenecks has been how much they cost. With only a handful of affordable options, people have been limited in their choices.

VW wants to change that. The company has been working for several years to develop compact, inexpensive EVs that will be priced “around 20,000 euros,” or roughly $21,681. This would be one of the more affordable EVs on the market.

Advertisement

Ultimately, giving consumers a variety of reasons to buy a vehicle will translate to sales. There’s no secret to that.

People want a good price, but when it comes to EVs, they also want tech, range, and adequate infrastructure.

Volkswagen wants to get people looking at the cars by starting with the thing they look at first: the price tag.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Advertisement

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

Advertisement
Comments

News

Tesla brings closure to Model Y moniker with launch of new trim level

Published

on

Credit: Tesla

With the launch of a new trim level for the Model Y last night, something almost went unnoticed — the loss of a moniker that Tesla just recently added to a couple of its variants of the all-electric crossover.

Tesla launched the Model Y All-Wheel-Drive last night, competitively priced at $41,990, but void of the luxurious features that are available within the Premium trims.

Upon examination of the car, one thing was missing, and it was noticeable: Tesla dropped the use of the “Standard” moniker to identify its entry-level offerings of the Model Y.

The Standard Model Y vehicles were introduced late last year, primarily to lower the entry price after the U.S. EV tax credit changes were made. Tesla stripped some features like the panoramic glass roof, premium audio, ambient lighting, acoustic-lined glass, and some of the storage.

Advertisement

Last night, it simply switched the configurations away from “Standard” and simply as the Model Y Rear-Wheel-Drive and Model Y All-Wheel-Drive.

There are three plausible reasons for this move, and while it is minor, there must be an answer for why Tesla chose to abandon the name, yet keep the “Premium” in its upper-level offerings.

“Standard” carried a negative connotation in marketing

Words like “Standard” can subtly imply “basic,” “bare-bones,” or “cheap” to consumers, especially when directly contrasted with “Premium” on the configurator or website. Dropping it avoids making the entry-level Model Y feel inferior or low-end, even though it’s designed for affordability.

Tesla likely wanted the base trim to sound neutral and spec-focused (e.g., just “RWD” highlights drivetrain rather than feature level), while “Premium” continues to signal desirable upgrades, encouraging upsells to higher-margin variants.

Advertisement

Simplifying the overall naming structure for less confusion

The initial “Standard vs. Premium” split (plus Performance) created a somewhat clunky hierarchy, especially as Tesla added more variants like Standard Long Range in some markets or the new AWD base.

Removing “Standard” streamlines things to a more straightforward progression (RWD → AWD → Premium RWD/AWD → Performance), making the lineup easier to understand at a glance. This aligns with Tesla’s history of iterative naming tweaks to reduce buyer hesitation.

Elevating brand perception and protecting perceived value

Keeping “Premium” reinforces that the bulk of the Model Y lineup (especially the popular Long Range models) remains a premium product with desirable features like better noise insulation, upgraded interiors, and tech.

Eliminating “Standard” prevents any dilution of the Tesla brand’s upscale image—particularly important in a competitive EV market—while the entry-level variants can quietly exist as accessible “RWD/AWD” options without drawing attention to them being decontented versions.

Advertisement

You can check out the differences between the “Standard” and “Premium” Model Y vehicles below:

@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper

Continue Reading

Elon Musk

Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

Published

on

Credit: Tesla China

A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup. 

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.

Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.

Advertisement

In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.

Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.

While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.

SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility. 

Advertisement
Continue Reading

Elon Musk

Elon Musk and xAI donate generators to TN amid historic power outages

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

Published

on

Credit: Tesla

Elon Musk has donated hundreds of generators to Tennessee residents still without power following a historic winter storm, as per an update from Governor Bill Lee. 

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

Musk donates generators

As noted in a report from WSMV4, the historic storm that hit Tennessee resulted in hundreds of thousands of residents experiencing a power outage at the end of January. Thousands are still living without power or heat in freezing temperatures for up to nine days.

As per TN Gov. Bill Lee in a post on X, Elon Musk and xAI have donated hundreds of generators to assist residents in affected areas. “Tennesseans without power need immediate help. I’m deeply grateful to @elonmusk & @xAI for going above & beyond to support Tennesseans by donating hundreds of generators to fill the gap, & I value their continued partnership to solve problems & support communities across our state,” he wrote in his post. 

Advertisement

Tennessee officials have stated that recovery efforts remain ongoing as crews work to restore power and address damage caused by the winter storm. The generators are expected to provide temporary relief for residents facing power outages during freezing conditions.

Tesla Powerwalls may follow

Musk publicly responded to the governor’s post while hinting that additional help may be on the way. This time, the additional support would be coming from Musk’s electric vehicle company, Tesla. 

“You’re most welcome. We’re working on providing Tesla Powerwalls too,” Musk wrote in his response to the official. 

Even before Elon Musk’s comment, Tesla had already extended help to affected customers in Mississippi and Tennessee. In a post on X, the official Tesla Charging account noted that all Superchargers in the two states are online, and free Supercharging has been enabled to help those in areas that are affected by persistent power outages. 

Advertisement

These include Grenada, Tupelo, Corinth, Southhaven, and Horn Lake in Mississippi and several Supercharging sites in Memphis, Tennessee. 

Continue Reading