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VW’s largest plant to get EV makeover, setting up showdown with Tesla’s Giga Berlin
Volkswagen’s Wolfsburg, Germany production facility is being upgraded to make room for electric vehicle production, setting up a showdown with Giga Berlin in an epic battle of massive EV production facilities in Germany.
An internal video conference with various VW team members and CEO Herbert Diess revealed the German automotive powerhouse would being planning for its largest facility to begin producing electric vehicles in a substantial push to create EVs under the Volkswagen name. The Wolfsburg facility is the world’s largest automotive factory. Volkswagen creates 800,000 vehicles a year at the facility, with the popular Golf and Tiguan models being the main products at the plant.
Volkswagen, however, has new plans for Wolfsburg, and it requires an overhaul of the existing facility to make way for EV powertrains to be manufactured. Diess said during a video conference on Monday that Wolfsburg will be fitted with the latest EV technology and software operations, according to people who were tuned in that work for Volkswagen. These sources wished to remain anonymous as the meeting wasn’t open to the public, Bloomberg initially reported.
Diess’ plans to upgrade Wolfsburg aren’t a guessing game by any means. Volkswagen is planning to draw inspiration from Tesla, the leader in electric vehicle manufacturing and technology, in an attempt to recreate the efficient production processes that the California-based company has used to ramp its production efforts to 500,000 cars a year. Tesla is able to build an EV in around 10 hours, less than half the amount of time that it takes Volkswagen to build one of its cars.
The comparison with Tesla is nothing new for Volkswagen. The company has used Tesla as a guideline to measure its success and efforts in its push toward electrification numerous times. In the past, Volkswagen has mentioned Tesla’s lead in software, and the company’s domination in the sector has compelled Diess to establish a strong relationship with CEO Elon Musk. The two have often traded compliments with one another and have even given one another test drives in upcoming models.
But, for now, the two companies remain competitors in the sector, and Volkswagen’s large-scale efforts are not being taken lightly. The upgrades to the Wolfsburg facility set up a major showdown with Tesla’s Giga Berlin factory, which is set to begin producing vehicles next Summer. Giga Berlin is set to be a state-of-the-art facility that will introduce new technologies and manufacturing techniques for Tesla. Set up to be a marvel of vehicle technology and engineering, Musk plans to use new-age manufacturing techniques, like casting machines and a battery production line to increase annual output to keep up with increasing demand.
Europe, being a significant market for EVs due to their overwhelming popularity and alignment with upcoming climate change targets, could be the path to success for either company. While Tesla is already widely regarded as the leader in EV manufacturing, Volkswagen could be considered the #2 company simply because of its commitment to transitioning away from petrol-powered engines.
With Diess set to remain at Volkswagen’s helm until at least April 2023, he has the board’s support moving forward. The next step is getting the facilities it has in place updated to support EV manufacturing. With several of these plants already building the ID.3 and ID.4, the name of the game is ramping production to massive volumes.
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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
The analyst’s updated note
Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker.
“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.
“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote.
Tesla’s busy 2026
The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.
Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year.
Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.
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Waymo sues Santa Monica over order to halt overnight charging sessions
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities.
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Nuisance claims
As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock.
Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.
Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.
“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.
Waymo pushes back
In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.
The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses.
“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated.
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Tesla FSD v14.2.2 is getting rave reviews from drivers
So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Tesla Full Self-Driving (Supervised) v14.2.2 is receiving positive reviews from owners, with several drivers praising the build’s lack of hesitation during lane changes and its smoother decision-making, among others.
The update, which started rolling out on Monday, also adds features like dynamic arrival pin adjustment. So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Owners highlight major improvements
Longtime Tesla owner and FSD user @BLKMDL3 shared a detailed 10-hour impression of FSD v14.2.2, noting that the system exhibited “zero lane change hesitation” and “extremely refined” lane choices. He praised Mad Max mode’s performance, stellar parking in locations including ticket dispensers, and impressive canyon runs even in dark conditions.
Fellow FSD user Dan Burkland reported an hour of FSD v14.2.2’s nighttime driving with “zero hesitations” and “buttery smooth” confidence reminiscent of Robotaxi rides in areas such as Austin, Texas. Veteran FSD user Whole Mars Catalog also demonstrated voice navigation via Grok, while Tesla owner Devin Olsen completed a nearly two-hour drive with FSD v14.2.2 in heavy traffic and rain with strong performance.
Closer to unsupervised
FSD has been receiving rave reviews, even from Tesla’s competitors. Xpeng CEO He Xiaopeng, for one, offered fresh praise for FSD v14.2 after visiting Silicon Valley. Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that areas of improvement are still present, the Xpeng CEO stated that FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, as it would allow users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
Waymo sues Santa Monica over order to halt overnight charging sessions
