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Volkswagen pledges to double ID sales in China after sub-par year due to chip shortage

Volkswagen's ID.4 (Credit: Volkswagen)

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Volkswagen Auto Group missed its sales goals for the ID. family of vehicles in China in 2021 by around 12 percent. Following the sub-par performance, mostly driven by the semiconductor chip shortage, the German automaker is pledging to double sales in 2022, despite the industry’s outlook remaining relatively unchanged for the new year.

VW reported that it sold 70,625 units of ID. family electric vehicles in 2021 in China. The ID. family of vehicles operate on Volkwagen’s modular electric drive matrix, or MEB. The architecture essentially acts as the vehicle’s brain, controlling everything from infotainment to automotive operations.

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

Despite over 70,000 units of its ID. vehicles sold in China, this was below the 80,000 to 100,000 vehicle sales goal that VW had committed to for 2021. Chip shortages essentially spoiled Volkswagen’s chance to reach its sales targets, and the company’s head of its China operations, Stephan Wollenstein, believes the German automaker can reach its goals for 2022, despite the semiconductor chip outlook still seeming grim for the future.

Volkswagen wants to obviously reach its lofty sales goals for 2022, but its production capacity is “is not currently secured by the semiconductor supplies that we currently see,” Wollenstein said in a briefing, according to Reuters. Despite this, he also stated that he was “pretty positive that we will see a doubling of actual sales.”

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As a whole, Volkswagen wants to expand its China sales by around 15 percent. It sold 3.3 million cars in China last year across each of its brands. This would recover total sales to 2020 levels, as 2021 sales dropped 14 percent compared to the year prior.

Semiconductor shortages plagued nearly every car company in the world, with the exception of one: Tesla. Tesla said teams had been “designing, developing, and validating” new, in-house microcontrollers that could quickly be modified to perform various tasks. A Tesla engineer detailed the company’s strategy with chips and stated that the versatility of the chips and how fellow team members could modify them quickly really helped the company avert the entire crisis.  “We design circuit boards by ourselves, which allow us to modify their design quickly to accommodate alternative chips like powerchips,” the employee told Reuters.

Other car companies were forced to cut back on production, apply lengthy delivery timeframes to their vehicles, and sometimes place hefty markups on vehicles to effectively put customers into a tricky situation, sometimes sacrificing tens of thousands of dollars over sticker price to obtain a car. This issue was a global one.

However, China is the world’s largest automotive market and one of the most heavily concentrated EV hotspots globally. Volkswagen is not a main contributor, especially as Tesla delivered just 23 fewer vehicles in December than Volkswagen did in all of 2021. Tesla is the third best-selling carmaker in China, behind BYD and GM-associated Wuling.

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.

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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 Giga Berlin is still ramping production to meet Model Y demand: plant manager

Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand.

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Credit: Tesla/X

Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand. While registrations in some countries such as Sweden have fallen sharply this year, the company’s sales in other key territories have been rising. 

Giga Berlin shifts to two shifts

Giga Berlin factory manager André Thierig told the DPA that the facility has been running two shifts since September to manage a surge in global orders. And due to the tariff dispute with the United States, vehicles that are produced at Giga Berlin are now being exported to Canada. 

“We deliver to well over 30 markets and definitely see a positive trend there,” Thierig said.

Despite Giga Berlin now having two shifts, the facility’s production still needs to ramp up more. This is partly due to the addition of the Tesla Model Y Performance and Standard, which are also being produced in the Grunheide-based factory. Interestingly enough, Giga Berlin still only produces the Model Y, unlike other factories like Gigafactory Texas, the Fremont Factory, and Gigafactory Shanghai, which produce more than one type of vehicle. 

Norway’s momentum

Norway, facing an imminent tax increase on cars, has seen a historic spike in Tesla purchases as buyers rush to secure deliveries before the change takes effect, as noted in a CarUp report. As per recent reports, Tesla has broken Norway’s all-time annual sales record this month, beating Volkswagen’s record that has stood since 2016.

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What is rather remarkable is the fact that Tesla was able to achieve so much in Norway with one hand practically tied behind its back. This is because the company’s biggest sales draw, FSD, remains unavailable in the country. Fortunately, Tesla is currently hard at work attempting to get FSD approved for Europe, a notable milestone that should spur even more vehicle sales in the region.

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Tesla launches crazy Full Self-Driving free trial: here’s how you can get it

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Credit: Tesla

Tesla is launching a crazy Full Self-Driving free trial, which will enable owners who have not purchased the suite outright to try it for 30 days.

There are a handful of stipulations that will be needed in order for you to qualify for the free trial, which was announced on Thursday night.

Tesla said the trial is for v14, the company’s latest version of the Full Self-Driving suite, and will be available to new and existing Model S, Model 3, Model X, Model Y, and Cybertruck owners, who will have the opportunity to try the latest features, including Speed Profiles, Arrival Options, and other new upgrades.

You must own one of the five Tesla models, have Full Self-Driving v14.2 or later, and have an eligible vehicle in the United States, Puerto Rico, Mexico, or Canada.

The company said it is a non-transferable trial, which is not redeemable for cash. Tesla is reaching out to owners via email to give them the opportunity to enable the Full Self-Driving trial.

Those who are subscribed to the monthly Full Self-Driving program are eligible, so they will essentially get a free month of the suite.

Once it is installed, the trial will begin, and the 30-day countdown will begin.

Tesla is making a major push to increase its Full Self-Driving take rate, as it revealed that about 12 percent of owners are users of the program during its recent earnings call.

Tesla CFO Vaibhav Taneja said during the call:

“We feel that as people experience the supervised FSD at scale, demand for our vehicles, like Elon said, would increase significantly. On the FSD adoption front, we’ve continued to see decent progress. However, note that the total paid FSD customer base is still small, around 12% of our current fleet.”

Earlier today, we reported on Tesla also launching a small-scale advertising campaign on X for the Full Self-Driving suite, hoping to increase adoption.

Tesla Full Self-Driving warrants huge switch-up on essential company strategy

It appears most people are pretty content with the subscription program. It costs just $99 a month, in comparison to the $8,000 fee it is for the outright purchase.

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Tesla Full Self-Driving warrants huge switch-up on essential company strategy

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tesla side repeater camera
(Credit: Tesla)

Tesla Full Self-Driving has warranted a huge switch-up on an essential company strategy as the automaker is hoping to increase the take rate of the ADAS suite.

Unlike other automotive companies, Tesla has long been an outlier, as it has famously ditched a traditional advertising strategy in favor of organic buzz, natural word-of-mouth through its production innovation, and utilizing CEO Elon Musk’s huge social media presence to push its products.

Tesla has taken the money that it would normally spend on advertising and utilized it for R&D purposes. For a long time, it yielded great results, and ironically, Tesla saw benefits from other EV makers running ads.

Tesla counters jab at lack of advertising with perfect response

However, in recent years, Tesla has decided to adjust this strategy, showing a need to expand beyond its core enthusiast base, which is large, but does not span over millions and millions as it would need to fend off global EV competitors, which have become more well-rounded and a better threat to the company.

In 2024 and 2025, Tesla started utilizing ads to spread knowledge about its products. This is continuing, as Full Self-Driving ads are now being spotted on social media platforms, most notably, X, which is owned by Musk:

Interestingly, Tesla’s strategy on FSD advertising is present in Musk’s new compensation package, as the eleventh tranche describes a goal of achieving 10 million active paid FSD subscriptions.

Full Self-Driving is truly Tesla’s primary focus moving forward, although it could be argued that it also has a special type of dedication toward its Optimus robot project. However, FSD will ultimately become the basis for the Robotaxi, which will enable autonomous ride-sharing across the globe as it is permitted in more locations.

Tesla has been adjusting its advertising strategy over the past couple of years, and it seems it is focused on more ways to spread awareness about its products. It will be interesting to see if the company will expand its spending even further, as it has yet to put on a commercial during live television.

We wouldn’t put it out of the question, at least not yet.

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