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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 Full Self-Driving (Supervised) v14.1.7 real-world drive and review

On an hour-long drive, we tested v14.1.7 and tested its new capabilities, which are mostly overall performance and smoothness fixes rather than integrations of new features that are unknown to routine FSD users.

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tesla interior operating on full self driving
Credit: TESLARATI

Tesla started rolling out its Full Self-Driving (Supervised) v14.1.7 suite last night to owners, and there are several improvements to note within the new update that are at least the start of fixes to highly-mentioned issues.

On an hour-long drive, we tested v14.1.7 and tested its new capabilities, which are mostly overall performance and smoothness fixes rather than integrations of new features that are unknown to routine FSD users. However, there are a handful of shortcomings that are still present within the suite, which are not something that will be fixed within the span of a single update.

For what it is, Full Self-Driving does an excellent job of navigating — once you get it on its correct path. Our issues tend to be confined to navigation, routing, and the decision-making process that has to do with the way the car wants to get you to your destination. There were five things that happened on our first drive with v14.1.7 that are worth mentioning. The full drive will be available at the bottom of this article.

Navigation and Routing Still Seems to Be a Major Challenge

In past content, we’ve discussed the issues with routing and navigation, and how a Tesla chooses its path. Most noticeably, these issues occur in the same areas; for me, it’s my local Supercharger. My 2026 Model Y with AI4 continues to pick less-than-optimal routes out of the Supercharger, and in this instance, it actually chose to turn down a road, pull over, and give me the wheel, essentially asking, “Hey, can you get me on the right track here?”

This is still my biggest bone to pick with FSD, even more so than some of the bonehead moves it’s made in tougher scenarios (mostly parking lots with very limited visibility due to shrubs being planted in the worst possible locations). It’s rare that it happens, but this particular Supercharger has been a true thorn in the side of my Tesla.

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This is not an issue that is confined to v14.1.7, or even v14 in general. Unfortunately, it is an issue that has persisted throughout my ownership experience, as well as during Demo Drives.

Stuttering and Hesitation at Intersections was Non-Existent

There was some confusion regarding my language in a recent article where I stated Tesla is confronting the issues that have been reported regarding the “stabbing” with braking.

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“Tesla began the v14.1.4 launch last night, which included minor improvements and addressed brake-stabbing issues many owners have reported. In my personal experience, the stabbing has been awful on v14.1.3, and is a major concern.

However, many things have improved, and only a couple of minor issues have been recurring. Many of the issues v13 addressed are no longer an issue, so Tesla has made significant progress.”

It has undoubtedly improved, but it is not resolved.

With that being said, I did not feel a single example of hesitation, stabbing, or stuttering at a single intersection or instance when it has been present in the past. CEO Elon Musk said it would be fixed with v14.2, so it seems like Tesla is well on its way to resolving it.

Proper Handling of Crosswalks

It’s crazy how many people still do not stop for pedestrians at clearly-marked crosswalks. I had two instances of it happen during the drive, with FSD stopping for those pedestrians both times.

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Human drivers did not stop either time:

Handled Merging onto a Highway with an Inconsiderate Driver Well

Routinely, drivers will get over into the left lane, if they are able, to allow merging traffic to safely enter the freeway. It does not always happen this way, and it’s not required by law.

Not exclusive to v14.1.7, as many past iterations would have done this as well, but it was nice to watch the vehicle slow down to let that traffic pass. It then entered the freeway safely, and the entire maneuver was well done.

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Took an Appropriate Move with Oncoming Foot Traffic and Debris in a Tight Alleyway

This was probably the most on-edge I was during the drive because: 1) FSD chose to take an unnecessary alleyway, and 2) there was a box and oncoming pedestrians.

The car was aware of everything that was going on. In order to avoid the box, it would have had to turn toward the pedestrians, and in order to avoid the pedestrians, it would have had to turn into the box.

It chose to wait patiently, and after the pedestrians were past the car, FSD chose to proceed.

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Closing Thoughts

Overall, we’re very impressed with v14.1.7, and we think this is Tesla’s best iteration of the FSD suite yet, as it should be since it’s the newest version available. Tesla’s attention to detail regarding the brake stabbing is really well done, and it seems evident that a complete fix is on its way.

Other than the navigation issue at the very beginning, which was not an intervention, at least in my opinion, this was a really successful drive.

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Elon Musk debunks report claiming xAI raised $15 billion in funding round

xAI also responded with what appeared to be an automated reply, stating, “Legacy Media Lies.”

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Credit: xAI

Elon Musk has debunked a report claiming his AI startup xAI had raised $15 billion from a funding round. Reports of the alleged funding round were initially reported by CNBC, which cited sources reportedly familiar with the matter.

CNBC’s report

The CNBC story cited unnamed sources that claimed that the new capital injection would help fund GPUs that xAI needs to train its large language model, Grok. The news outlet noted that following the funding round, xAI was valued at $200 billion. 

Artificial intelligence startups have been raising funds from investors as of late. OpenAI raised $6.6 billion in October, valuing the startup at a staggering $500 billion. Reuters also reported last month that OpenAI was preparing for an IPO with a valuation of $1 trillion. Elon Musk’s xAI is looking to catch up and disrupt OpenAI, as well as its large language model, ChatGPT, which has become ubiquitous.

Elon Musk and xAI’s responses

In his response on X, Elon Musk simply stated that the CNBC story was “false.” He did not, however, explain if the whole premise of the publication’s article was fallacious, or if only parts of it were inaccurate. 

Amusingly enough, xAI also issued a response when asked about the matter by Reuters, which also reported on the story. The artificial intelligence startup responded with what appeared to be an automated reply, which read, “Legacy Media Lies.”

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xAI, founded in July 2023 as an alternative to OpenAI and Anthropic, has aggressively built out infrastructure to support its flagship products, including Grok and its recently launched Grokipedia platform. The company is developing its Colossus supercomputer in Memphis, which is heralded as one of the world’s largest supercomputer clusters.

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Tesla reportedly testing Apple CarPlay integration: report

Citing insiders reportedly familiar with the matter, Bloomberg News claimed that CarPlay is being trialed by the EV maker internally.

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Credit: Tesla

Tesla is reportedly testing Apple’s CarPlay software for its vehicles, marking a major shift after years of resisting the tech giant’s ecosystem. 

Citing insiders reportedly familiar with the matter, Bloomberg News claimed that CarPlay is being trialed by the EV maker internally. The move could help Tesla gain more market share, as surveys have shown many buyers consider CarPlay as an essential feature when choosing a car.

Not the usual CarPlay experience

Bloomberg claimed that Tesla’s tests involve a rather unique way to integrate CarPlay. Instead of replacing the vehicle’s entire infotainment display, Tesla’s integration will reportedly feature a CarPlay window on the infotainment system. This limited approach will ensure that Tesla’s own software, such as Full Self-Driving’s visuals, remains dominant. 

The feature is expected to support wireless connectivity as well, bringing Tesla in line with other luxury automakers that already offer CarPlay. While plans remain fluid and may change before public release, the publication’s sources claimed that the rollout could happen within months. 

A change of heart

Tesla has been reluctant to grant Apple access to its in-car systems, partly due to Elon Musk’s past criticism of the tech giant’s App Store policies and its poaching of Tesla engineers during the failed Apple Car project. Tesla’s in-house software is also deemed by numerous owners as a superior option to CarPlay, thanks to its sleek design and rich feature set.

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With Apple’s retreat from building cars and Elon Musk’s relationship with Apple for X and Grok, however, the CEO’s stance on the tech giant seems to be improving. Overall, Tesla’s potential CarPlay integration would likely be appreciated by owners, as a McKinsey & Co. survey last year found that roughly one-third of buyers considered the lack of such systems a deal-breaker.

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