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New Wolfspeed EV chip factory poised to tackle automotive chip shortage

Credit: Wolfspeed

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An upcoming EV chip manufacturing plant in Germany is poised to finally tackle the chip shortage that has ravaged automakers worldwide.

If one thing has become eminently clear over the past three years, it is the fact that the supply chains that bring us everything from cars to surgical masks are incredibly delicate and, further, can benefit from numerous points of origin. Perhaps nowhere has this been seen better than in the scramble for automotive computer chips in the wake of COVID-19 across the world in 2020. Now, according to a press release from German chip conglomerate ZF Friedrichshafen (ZF) and American chip maker Wolfspeed, the two will be collaborating to meet this demand with a new chip fabrication plant in Germany.

The company itself confirmed the plant this morning. The upcoming factory “will be the world’s largest, utilizing innovative manufacturing processes to produce next-generation Silicon Carbide devices.” But the importance of the factory isn’t just due to its potential to meet the near overwhelming demand of automakers for EV computer chips, but in its strategic location.

Saarland, a German state located on the border with France, will reportedly be the home of the upcoming fabrication location. From there, Wolfspeed and ZF would be able to quickly and efficiently meet the demand for EV chips of Porsche in Stuttgart, BMW in Bavaria, and Mercedes in central Germany. Further, it would also be able to meet upcoming demand from Renault and Stellantis just over the border in France.

Even outside of that immediate radius, Tesla’s massive Giga-Berlin facility and Ford’s numerous production locations found in Northern Germany can benefit from this new supply.

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Neither a production start date nor an estimate of production capacity have been announced, though construction will begin in the first half of this year, pending confirmation from the European Unions. The upcoming plant will supposedly cost €3 billion ($3.27 billion), with ZF holding a minority in the venture. This is part of Wolfspeed’s previously announced $6.5 billion global expansion plan, which included two other production locations in the United States.

German officials also see the new project as a win, one telling Reuters, “Amid the concerns that the U.S. wants to divert investments from Europe with its Inflation Reduction Act, we’re showing that a U.S. firm wants to invest in Germany.” However, it should be noted that Wolfspeed and ZF are likely attracted to Germany following the success of Europe’s own “IRA,” which plans to invest 45 billion euros ($49.03 billion) into computer chip manufacturing throughout the continent. The plan has yet to be finalized by the European Parliament.

“This project is a great transformation driver and a job engine for a traditionally industrial region. Furthermore, it bundles important know-how in Europe and contributes to the implementation of the European Green Deal by reducing energy consumption and CO2 emissions,” said Saarland Minister-President Anke Rehlinger. “We’re proud to have Wolfspeed, and have our region play such a vital role in advancing Silicon Carbide semiconductor innovation.”

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The company’s press release noted that Wolfspeed specializes in “silicon carbide chips” typically used in high-voltage use cases, such as EV drivetrains. Manufacturers specifically choose the chips for their ability to operate under high loads while retaining energy efficiency. Wolfspeed already produces these chips en masse and has announced “the world’s largest chip plant,” which will be built in the United States and come online by 2030.

Wolfspeed and ZF have clearly chosen the ideal location for their upcoming plant. And with the ongoing battle for cheaper and cheaper EVs, the company is poised to benefit simply due to its physical proximity. Suppliers are finally considering moving away from China as the sole chip supplier, and in the quest for electrifying mobility, this may be key to a faster transition.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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

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tesla full self driving
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.

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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

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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.

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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.

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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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Tesla Model Y Standard: first impressions from a Premium owner

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Credit: TESLARATI

Tesla was nice enough to hook us up with the new Model Y “Standard” trim for a few days, and while we’ll be sure to fill you in on the full experience in the coming days, there are a lot of differences we noticed right off the bat, which make the ownership experience different from the “Premium” configuration level.

I purchased a Model Y Long Range All-Wheel-Drive back in August and took delivery just two weeks later. Through the first three months of owning my car, I’ve come to love so many things about the Tesla experience.

I traded my ICE vehicle for a Tesla Model Y: here’s how it went

However, I was interested in experiencing the affordable trim and seeing whether I would miss any of the voided features of the “Premium” Model Y.

Through the first 24 hours, here are my first impressions of the Model Y Standard as a Premium trim level owner:

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Overall Aesthetic

The lack of a light bar is not something that is a dealbreaker. In fact, I would argue that the Model Y Standard’s more traditional headlight design is just as pleasing from an aesthetic standpoint.

The car is great looking from top to bottom; there are not a substantial number of differences besides the lack of a lightbar on both the front and the back of the car.

Overall, it is a very sleek vehicle, but the major changes are obviously with the interior.

Interior Changes

This is where the big differences are, and some of the things I’ve gotten used to in the Premium are not included. If I didn’t have a Premium Model Y already, I’m not sure I’d miss some of the things that are not present in the Standard trim, but I believe I’d get annoyed with it.

Storage

The Premium has a large storage compartment between the cupholders and the wireless charger, which is not present in the Standard trim. Instead, it is more like the Cybertruck, as there is a pass-through and floor storage.

I think that the pass-through is nice, but the additional storage is something I take advantage of, especially as someone who films Full Self-Driving videos, which requires hauling mounts, GoPros, and other accessories.

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The sleekness of the Premium trim is also something I prefer; I really enjoy having the ability to close those compartments and cover the cupholders.

Obviously, this is a really trivial issue and not something that is substantially impactful from an ownership experience. If I weren’t already an owner, I am not sure I’d even have something to complain about.

Material Differences

The Premium trim seats are completely Vegan Leather, which I really do like, even as someone who doesn’t really love leather seats due to their temperature dependency.

The Standard trim features a Textile and Vegan hybrid, which has half of the seat a different material than the other.

The material is very similar to what I had in my previous car, a Bronco Sport. It was very durable, easy to clean, dried quickly, and hid a lot of things that leather does not, like oils from your skin, which constantly require attention to keep your interior looking fresh.

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The wireless charger is also a different material, as the Premium features an Alcantara material on that. The Standard has a rubberized and textured backing, which looks good, too. They’re both more than suitable.

Other Missing Features

The Standard lacks a few minor things, most noticeably is the ambient lighting. The biggest change, however, and something I really miss, is the glass roof.

A lot of people told me that when I got my Model Y, I wouldn’t even notice the glass roof after a few weeks. That could not be further from the truth. I look out of it all the time, and it’s one of my family’s favorite parts of the car.

My Fiancè and I really love parking and watching Netflix when we pick food up, especially when it’s raining, because the glass roof gives such a great view.

We also loved it as Fall arrived, because it was great to look at the foliage.

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Bigger Differences

There are also a handful of very noticeable differences from the overall cabin experience, especially with the sound system.

Much Weaker Sound System

The Model Y Standard has just 7 speakers and 1 amp, with no subwoofer. This is a significant step down from the 13-15 speakers in the Premium Long Range AWD Model Y, the 2 amps it comes with, and 1 subwoofer in the trunk.

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I usually like to listen to Long Time by Boston to test out a sound system, and it was noticeably weaker in the Standard. It was missing a big portion of the umph that is provided by the Premium’s sound system.

Cabin Noise

It feels like the Cabin Noise is definitely more noticeable in the Standard, which is something I really love about my Model Y. It is able to dampen so much road noise from louder cars, and I don’t feel as if it is very quiet in the Standard.

This is perhaps the biggest make-or-break for me with this car. I truly have been spoiled by how quiet the cabin is in the Premium, and it’s due to the lack of acoustic-lined glass in the Standard.

I will be doing a more in-depth review of the Model Y Standard, especially with ride quality, later this week.

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