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Anti-Tesla strategy bites VW’s China division as local customers lament laggy ID.4 software

Volkswagen ID.4 Interior (Credit: VW)

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It is normal for automakers to throw shade over their competition every so often. Elon Musk does this himself, poking fun at the Audi e-tron’s name or the fact that competitors’ specs are still comparable to Tesla’s original Model S. Volkswagen’s China division has done the same thing, with the local branch of the German automaker targeting Tesla during the debut and delivery event of the ID.4 in the country. 

VW China did not waste any time throwing some good old-fashioned shade towards Tesla, highlighting several points of criticism against the company in the ID. 4’s local debut. Volkswagen China mentioned Tesla’s inconsistent pricing, the Model 3 and Model Y’s lack of a front instrument cluster, uncomfortable seats, and unfriendly UI (among many) while promoting the ID.4

https://twitter.com/ray4tesla/status/1374461886800883717?s=20

Volkswagen followed this up with an aggressive push of the ID.4 in the local market, with some social media users posting images of Volkswagen booths being placed strategically in front of Tesla’s local stores. It’s a bold move and one which suggests that the German automaker is serious about its EV push in China. These efforts paid off to some degree, with VW China selling 1,267 ID.4 Crozz SUVs between January and May. 

Being a veteran of the electric vehicle market, Tesla is familiar with how vocal electric car owners could be when it comes to issues about their EVs. This is something that is currently being experienced by Volkswagen’s China division, as a growing number of ID.4 owners are starting to share their experiences about the all-electric crossover’s software issues in social media. 

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One owner, who complained that he could not even turn on his ID. 4’s air conditioning feature because of its laggy software, ended up physically hitting the vehicle’s infotainment display out of frustration. The ID.4 owner shared a clip that was over 20 seconds long, and over the entire time, the vehicle’s software was just loading. Considering how dependent the vehicle’s features are on its infotainment system, the VW owner’s frustration was quite understandable. 

This is not to say that Tesla’s software is perfect, of course. Several Tesla owners have mentioned that their vehicles’ PIN to Drive function usually results in a slow user experience, which is pretty annoying on its own. Teslas with older hardware also tend to have slower infotainment systems as the vehicle ages. This point makes the frustration of China’s ID.4 owners even more notable, however. After all, if a brand new vehicle already features laggy software, it would be hard to imagine just how slow the system would be a few years down the road. 

It should be noted that Tesla and Volkswagen’s leadership have a pretty good relationship, with CEO Elon Musk and VW boss Herbert Diess having engaged in numerous friendly interactions in the past. Both executives have also defended the other against media criticism. Musk and Diess even took a short test drive of the Volkswagen ID.3, which involved the Tesla CEO flooring the vehicle in an attempt to get it to move faster while the VW boss explained that the all-electric hatchback was not a high-performance car.

Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk breaks silence on OpenAI trial decision

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk broke his silence regarding the jury decision to throw out the case against OpenAI and Sam Altman. The Tesla, SpaceX, and xAI frontman has already indicated that an appeal will be filed regarding the decision, which went against him yesterday.

A Federal jury dismissed this high-profile lawsuit after less than two hours of deliberation due to a statute-of-limitations issue.

In a strongly worded post on X on May 18, Musk addressed the federal jury’s dismissal of his high-profile lawsuit against OpenAI, vowing to appeal the ruling to the Ninth Circuit Court of Appeals. The decision, according to Musk, was centered not on the substantive claims but on a statute-of-limitations technicality.

Musk’s lawsuit, filed in 2024, accused OpenAI co-founders Sam Altman and Greg Brockman of breaching the organization’s original nonprofit mission. OpenAI was established in 2015 as a non-profit dedicated to developing artificial intelligence for the benefit of all humanity, with Musk as a key early donor and co-founder before departing in 2018.

Musk alleged that Altman and Brockman improperly shifted the company toward a for-profit model, enriched themselves through massive valuations and partnerships (including with Microsoft), and betrayed founding agreements.

In his post, Musk emphasized that the judge and jury “never actually ruled on the merits of the case, just on a calendar technicality.” He stated unequivocally: “There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!”

Musk argued that allowing such actions to stand without review sets a dangerous precedent. “I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America,” he wrote. He reiterated OpenAI’s founding purpose: “OpenAI was founded to benefit all of humanity.”

The jury’s unanimous advisory verdict found that Musk’s claims of breach of charitable trust and unjust enrichment were filed outside California’s three-year statute of limitations. U.S. District Judge Yvonne Gonzalez Rogers adopted the finding and dismissed the case. OpenAI hailed the outcome as vindication, while Musk’s legal team immediately signaled plans to appeal.

The trial, which featured testimony from Musk, Altman, Brockman, Microsoft CEO Satya Nadella, and others, exposed deep rifts in Silicon Valley over AI’s direction.

Musk has long warned that profit-driven AI development, especially with closed models and powerful corporate ties, risks endangering humanity—contrasting it with OpenAI’s original open, safety-focused charter. OpenAI countered that the suit stemmed from business rivalry and that Musk himself had explored for-profit paths earlier.

Musk’s appeal could prolong the saga, potentially affecting OpenAI’s valuation (reportedly over $800 billion) and IPO ambitions. Supporters view his stance as defending nonprofit integrity, while critics see it as sour grapes from a competitor whose own xAI is racing in the AI arena.

Regardless of the legal outcome, the case has spotlighted critical questions about trust, governance, and mission drift in the rapidly evolving AI industry. Musk’s willingness to fight on suggests this chapter is far from closed, with broader implications for how charitable organizations—and the tech giants born from them—operate in the future.

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NASA updated Artemis III and SpaceX’s role just got more complicated

SpaceX’s Starship is the key to NASA’s Moon plan and the timeline is already slipping.

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SpaceX has been at the center of NASA’s Moon ambitions for five years, and the updated Artemis III plan recently released by NASA makes that relationship more visible than ever. In April 2021, NASA awarded SpaceX a $2.89 billion contract to develop the Starship Human Landing System, selecting it as the sole provider to land astronauts on the Moon under Artemis III. Blue Origin filed legal protests, lost, and eventually received its own contract, but SpaceX was always the program’s primary lander contractor.

The original plan called for Starship to land two astronauts on the lunar south pole. That mission slipped as Starship development ran behind schedule, and in February 2026, NASA officially revised the Artemis III architecture entirely. The mission will now remain in low Earth orbit and serve as a crewed rendezvous and docking test between the Orion spacecraft and both the SpaceX Starship HLS pathfinder and Blue Origin’s Blue Moon Mark 2 pathfinder, with the actual Moon landing pushed to Artemis IV in 2028.

What makes SpaceX’s position particularly significant is the direct line between this week’s Starship V3 launch and the Artemis timeline. The Starship HLS is essentially a modified version of the V3 upper stage, meaning SpaceX cannot realistically prepare a lander for a 2027 docking test until it has demonstrated that the base vehicle flies reliably at scale. Flight 12, targeting this week, is the first data point in that sequence.

SpaceX Board has set a Mars bonus for Elon Musk

NASA has spent nearly $7 billion on Human Landing System development since awarding contracts to SpaceX and Blue Origin in 2021 and 2023, and NASA administrator Jared Isaacman has indicated a desire to drive down costs going forward. As Teslarati reported, before Starship HLS can put anyone on the Moon it has to solve a problem no rocket has demonstrated at scale, which is refueling in orbit, requiring approximately ten tanker launches worth of propellant loaded into a depot before the lander has enough fuel to reach the lunar surface.

The Artemis III mission described by NASA is essentially a stress test for every system that needs to work before any of that happens.

SpaceX has gone from a launch contractor to the single most critical hardware provider in America’s return-to-the-Moon program. With an IPO targeting a $1.75 trillion valuation and Elon Musk’s compensation tied directly to Mars colonization, the pressure on every Starship milestone between now and 2028 has never been higher.

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Tesla is making sweeping improvements to Robotaxi

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Credit: Tesla

Tesla is continuing to refine and improve its Robotaxi program from A to Z, and it is now going to make some sweeping changes to the smartphone app portion of the suite.

The company is aiming to make some sweeping changes with the release of Robotaxi app version 26.4.5, which was recently decompiled by Tesla App Updates on X. The update reveals significant new code, focused on remote operations, safety protocols, and seamless autonomous ride-hailing.

These improvements evidently signal Tesla’s preparations for scaling unsupervised Cybercab deployments, particularly the steering wheel-less variants spotted in production. The enhancements emphasize providing a reliable experience that gives passengers support when needed, along with operational efficiency.

Remote Operator Voice Calls

One standout addition is support for remote operator voice calls. The app now includes a dedicated native voice-communication system linking passengers directly to Tesla teleoperators via the vehicle’s cabin microphone and speakers.

This feature allows real-time assistance during rides, addressing issues like navigation questions or comfort adjustments without disrupting the autonomous journey. It builds on existing support protocols, making human intervention more accessible and intuitive.

Proactive Remote Assistance

The update introduces proactive remote assistance capabilities. Rather than waiting for passenger-initiated requests, the system can anticipate and offer help based on monitored conditions.

This might include something like suggesting route changes, climate adjustments, or addressing potential delays. By integrating AI-driven monitoring with human oversight, Tesla aims to deliver a smoother, more attentive experience that exceeds traditional ride-sharing services.

Manual Override and Remote Start for Steering Wheel-less Cybercabs

A key highlight for the wheel-less Cybercab fleet is manual override plus remote start functionality. Fleet operators and technicians can now temporarily take control or remotely start vehicles lacking steering wheels. This is crucial for lower-speed maneuvers, such as getting vehicles from tight parking situations or even performing maintenance.

Controls are strictly limited for safety–typically to speeds under 2 MPH–ensuring these interventions remain emergency measures only.

Tesla is adding a secure “Enable Manual Drive” mode that will allow those fleet operators or others to take control temporarily.

Additionally, a Remote Start feature, which authorizes an empty vehicle to begin a driverless ride alone.

Ride-Hailing and Dispatch Features

Ride dispatch has been enhanced with soft-matching and multi-stop support. The app can intelligently pair riders with available Cybercabs while accommodating multiple destinations in a single trip.

This optimizes fleet utilization, reduces wait times, and improves efficiency for shared rides. Soft-matching likely considers factors like proximity, rider preferences, and vehicle availability for better user satisfaction.

Rider-Cabin Sync, Real-Time Routing

New synchronization tools allow the rider’s app to mirror and control cabin settings like seating, climate, and entertainment directly from their phone. Real-time routing updates adapt dynamically to traffic or road conditions, while dynamic safety monitoring continuously assesses the environment.

The app can now push updates directly to the main screen, enabling Center Display Control. Additionally, there is a dedicated navigation protocol sharing the exact coordinates of road closures and construction, which could prevent the car from getting stuck and needing manual override.

These features create a cohesive, responsive experience where the vehicle and app work in harmony.

Kill Switch

A high-security command lets Tesla completely freeze a vehicle’s ability to drive. This would take the vehicle out of the Robotaxi fleet for any reason Tesla sees fit, and would not allow it to be put into gear even with the correct equipment, like valid keys.

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