Here at InsideEVs, not a day goes by that we don't cover news about some upcoming electric vehicle that we're excited about. But a weird thing has happened as of late: aside from vague hints at newer and more affordable models, almost none of the exciting new stuff on the horizon is from Tesla.
That's because the company is, by the admission of CEO Elon Musk, laser-focused on AI and robotics projects, not the comparatively dull work of competing with Hyundai or Ford. Key to that is a long-gestating plan for an autonomous Tesla "robotaxi" business that could involve owners' own vehicles.
But that's much easier said than done, and not even on the AI and autonomy side. Just ask a guy who knows what he's talking about: Uber's CEO, Dara Khosrowshahi.
Khosrowshahi's remarks about Tesla's plans kick off this Monday edition of Critical Materials, our morning roundup of the latest tech, auto industry and mobility news. Also on tap: a long-awaited Volkswagen EV is still set to debut this year, and South Korea is genuinely spooked about that Mercedes EV fire in a parking garage. Let's dig in.
30%: A 'Very, Very Different Business'
Musk has staked Tesla's future on AI and autonomy. As he's long said, it's the difference between the company being the most valuable one on earth and worth virtually nothing. And new upgrades to its Full Self-Driving software have been rolling out all year.
While it's always unwise to count Tesla out, it's worth noting that this latest move is basically tripling down on some of Musk's most long-undelivered promises. After all, the cars were supposed to be able to drive from LA to New York autonomously by the end of 2017, and you were supposed to be able to earn up to $30,000 in passive income renting out your Tesla as a robotaxi four years ago. (Just so we're clear: neither happened.)
It will take a tremendous series of breakthroughs in autonomy and AI to get even close to delivering on such promises in 2025 and beyond. However, Uber's Khosrowshahi—brought in as a reformer at the long-troubled ride-hailing giant and someone who has largely delivered on that promise—says that the AI stuff is only part of the problem.
The other is designing a robust, flexible software and app network for ride-hailing. Uber's network is far more complex than people think and it's been in development since 2010. Tesla can't come up with something that good overnight.
On an episode of The Logan Bartlett Show podcast, and transcribed here by Business Insider, Khosrowshahi explains:
Khosrowshahi said it "wasn't clear" to him that the average Tesla owner would want "to have that car be ridden in by a complete stranger."
He also doubts that Tesla's taxis could meet demand during peak times.
"Probably the times at which you're going to want your Tesla are probably going to be the same times that ridership is going to be at a peak," he said. Comparatively, Khosrowshahi said Uber can quickly adjust the number of part-time drivers to meet demand during rush hour or large events.
Khosrowshahi also said Musk might be underestimating a key part of the business. He said building a $50,000 piece of hardware is a "very, very different business" than driving over 30 million transactions every day. There is also the customer service side of things, like when someone gets sick during a ride or loses an item in a car, he said.
That is, unless the plan is for Tesla to partner with a company like Uber if it can pull off such technology (which, to be clear, remains a gigantic if.) Khosrowshahi said he's hopeful that could happen. Then again, Tesla also has a long history of alienating partners, from Mobileye to the various automakers who were hoping for Supercharger access by now.
60%: Yes, The Volkswagen ID.Buzz Is Still Coming To The U.S. In 2024
But long-delayed and deferred promises certainly aren't unique to Tesla. Here's some news about a car that's been pushed back so far, it makes the Cybertruck look prompt.
Automotive News reiterates what it, InsideEVs and other outlets have been reporting this year: that the Volkswagen ID.Buzz van is still on track for a U.S. release at the end of this year. It's been out in Europe since 2022, and while VW is currently reevaluating its EV plans amid a slew of troubles and uneven sales, the electric Microbus successor is apparently still headed our way soon:
The German brand instead will add just the long-awaited ID Buzz electric minivan. In May, VW delayed the U.S. launch of the ID7, an electric sedan that would have likely had a sticker price between $50,000 and $60,000.
Volkswagen Group of America CEO Pablo Di Si has all but confirmed that hybrids are bound for the brand's U.S. lineup, which currently has none. The VW brand launched a plug-in hybrid Tiguan in Europe, and Di Si has said the powertrain has potential here.
The ID.4 crossover got some upgrades for the 2024 model year that we really like, but the ID.7 sedan has been "delayed indefinitely" in the U.S. My thinking is it won't come here at all, given VW's own poor sales track record with expensive European-style sedans like the Arteon or even the Phaeton before that.
Beyond that, it's deeply unclear what VW's immediate EV plans are for the U.S., except for an anticipated move to electric models that are more conventional-looking and less aggressively future-forward like the ID cars have been.
90%: Mercedes, Kia EV6 Fires Have South Korea On Edge
First, a Mercedes-Benz EQE fire in a South Korean parking garage torches about 140 cars and injures more than 20 people. Now, a Kia EV6 (uh-oh!) fire breaks out in the same country, thankfully with far less damage and no injuries that I've seen reported.
But both incidents have Korea—whose local automakers have planted their flags with EVs in a big way—in freakout mode. Here's Reuters with the latest:
South Korean officials met on Monday to discuss electric vehicle safety and whether to require car firms to disclose battery brands amid growing consumer concern after an EV blaze in an underground garage extensively damaged an apartment block.
On Tuesday, transport ministry officials will hold talks with automakers, including Hyundai Motor Group, Mercedes-Benz Korea and Volkswagen Group Korea, to discuss the proposal to disclose battery brands used in EVs, media reports said.
The Chosun Ilbo newspaper reported last week that South Korea planned to require EV makers to disclose the brand of batteries in cars.
Automakers currently need to provide certain information about vehicles, such as fuel efficiency, but only limited details on batteries and do not have to name the manufacturers, the newspaper said.
A few things of note: first, EV fires are statically less common than gas-car fires (even as they make up fewer cars on the road.) But when they do happen, it's a pretty day at the office for firefighters and rescue workers. Especially in tight, closed spaces, like these underground garage fires.
Second, we have not received any information about what caused the Mercedes and Kia fires, or whether any U.S. models might be affected; no recalls have been ordered and it's not immediately clear if those cars get the same batteries as our versions do.
That's also why I support battery sourcing disclosures for EVs, like this story indicates the Korean government may force. That information would be incredibly useful to consumers, not to mention reporters like us who cover the space.
In many cases, lithium-ion fires like the ones that have been a persistent problem in New York City have been tied not to cars but to e-bikes and scooters. Many of those have used low-quality Chinese batteries, not the higher-grade automotive stuff. But any resources that can help people understand common links between fires would be extremely useful.
And then the automakers need to hurry up with solid-state batteries, already.
100%: Will The ID.Buzz Be The Shot In The Arm Volkswagen Needs?
I have to admit that Volkswagen's U.S. product roadmap isn't exactly the most thrilling thing I've ever read. It's definitely taking the long-game approach to EVs, but it seems to be "wait and see" mode on several fronts—including flirting with bringing hybrids to the U.S. market, which it probably should commit to already.
At the same time, I've driven the ID.Buzz in Europe and it's a real charmer. What will that do for the EV field in America? If VW's smart, it will blow that thing out all over the morning talk shows and anywhere else it can reach mainstream, normie car-buyers.
Contact the author: patrick.george@insideevs.com
