![Why is Volkswagen cutting ID.4 production just as US sales are surging? [Update]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/02/Volkswagen-ID.4-best-selling-EV-1.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Why is Volkswagen cutting ID.4 production just as US sales are surging? [Update]
Volkswagen is cutting production in Chattanooga, Tennessee, where the ID.4 electric SUV is built. Although the ID.4 was the third top-selling EV in the US earlier this year behind Tesla’s Model Y and Model 3, a company spokesperson tells us “cautious demand for EVs” is behind the adjustments.
Volkswagen cuts ID.4 production in the US
After sales fell by over 50% in the US last year after Volkswagen halted production and deliveries, the electric SUV made an impressive comeback in 2025.
The ID.4 was the third best-selling electric vehicle in the US in January, trailing only the Tesla Model Y and Model 3.
Volkswagen sold nearly 5,000 ID.4s in January alone, putting it on pace to sell about 60,000 by the end of 2025. A company spokesperson told Electrek that although “ID.4 remains in strong demand, we are adjusting production to align with a lower-than-expected EV adoption rate in the US.”
The spokesperson added that the lower expectations are not specific to the ID.4 but to the entire US electric vehicle market.
Starting March 31, Volkswagen will return to a primarily two-shift production schedule. Meanwhile, the body shop for the ID.4 will still run on three shifts.
Volkswagen said in a statement, “This decision reflects the need for flexibility and a profitably-run business to support continued investment and growth in the US market.” The company is optimizing production across all sites, adding, “Given the currently cautious demand for EVs in the U.S., we are adjusting our production in Chattanooga accordingly.”
Although it didn’t directly say it, Trump’s tariffs on imports from Mexico and Canada are likely the biggest to blame.
Volkswagen said its vehicles made in North America are USMCA compliant, but it’s still expected to see the most damaging blow of German brands from the new tariffs.
Audi and Porsche are both primarily built in Europe, while Volkswagen brand vehicles in the US are likely imported from Mexico.
The spokesperson told us that VW is offering a “voluntary attrition program” with complete benefits, including severance packages, retirement options, and more.
Volkswagen said it remains “committed to our team members, our customers, and our presence in Chattanooga,” adding, “This change supports that commitment.”
The decision comes after last April’s historic decision, in which VW workers at the plant became the first in the South outside of the Big Three to join the Union since 1940.
On Wednesday, the UAW filed unfair practice charges against VW. In a statement, UAW president Shawn Fain said, “The UAW has notified the Trump Administration of Volkswagen’s unacceptable, anti-union, anti-worker, and anti-American conduct.”
In response, VW said the “unions claims in its filings from March 13 are categorically false.” The automaker said it “has negotiated with them for months regarding a shift reduction in Chattanooga.”
It has also “repeatedly educated them on the economics that have led to this difficult decision – shifting EV demand and an uncertain market.”
Electrek’s Take
As we keep saying, Trump’s tariffs do much more harm than good. Volkswagen is considering moving Audi and Porsche production to the US, but it only has until early April before the tariffs kick in.
Nearly every automaker has warned that added tariffs on its biggest trade partners will put the US further behind China and other emerging tech leaders.
Some automakers are already turning to China for smart EV tech (to sell globally) because it’s cheaper and easier to scale. And this is just the start. Other countries, like Australia, are now opening up to Chinese-made EVs and other tech. What’s next?
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Burlingame, California-based Peak Energy just scored a huge win for sodium-ion batteries. The company announced a multi-year deal with utility-scale battery storage developer Jupiter Power to supply up to 4.75 GWh of sodium-ion battery systems between 2027 and 2030.
Under the agreement, Peak will deliver 720 MWh of storage in 2027 – the largest single sodium-ion battery deployment announced so far. The deal also includes an option for an additional 4 GWh of capacity through 2030, bringing the total contract value to more than $500 million.
Sodium-ion vs. lithium-ion
Peak Energy says its sodium-ion batteries degrade less over time and have lower operations and maintenance costs than lithium-ion systems. Because the batteries don’t degrade as quickly, operators don’t need to add more capacity later in a project’s life to maintain performance. They also use a fully passive cooling system that eliminates pumps, fans, and other components used in lithium-ion setups, reducing maintenance and safety risks.
The company claims its grid-scale sodium-ion system uses up to 97% less auxiliary power, offers about 30% better cell degradation performance over 20 years, and comes with a lower total cost of ownership.
Why this deal matters
The agreement marks a significant step forward for the emerging sodium-ion sector, which has been gaining momentum as a safer and lower-cost alternative to lithium-ion for long-duration and grid-scale energy storage. It also underscores the growing effort to build a domestic sodium-ion battery supply chain in the US.
“From day one, we’ve believed sodium-ion will be the winning technology for grid-scale storage, which is essential to meet rising demand from hyperscalers and AI,” said Landon Mossburg, Peak Energy’s CEO and cofounder. “Deploying the world’s largest sodium-ion energy storage system with one of the nation’s top independent power producers proves that sodium is ready for today and will dominate the future.”
Mike Geier, CTO at Jupiter Power, said the company is “excited to support domestic battery energy storage manufacturing as we continue to increase the deployment of firm, dispatchable energy when and where it’s most needed,” and called Peak’s approach to sodium-ion “a potential game changer for the industry.”
Read more: The US’s first grid-scale sodium-ion battery is now online
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![The new 2026 Lexus ES is an upgrade in just about every way [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/11/new-2026-Lexus-ES-EV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Lexus claims the new ES “takes sedan styling, luxury, and refinement to a higher level” with a complete redesign. With the 2026 ES arriving soon, Lexus offered a closer look at the upgrades inside and out.
The new 2026 Lexus ES debuts in EV and hybrid forms
The eighth-gen ES is bringing more than a sharp new style. Lexus overhauled its flagship sedan from the ground up for the 2026 model year, which will include battery electric (BEV) and hybrid (HEV) powertrain options.
Inspired by the radical LF-ZC show car, the 2026 ES has been fully redesigned with what Lexus calls the “Experience Elegance and Electrified Sedan” concept, aimed at further refining the driving experience.
The new design centers on a redesigned “spindle body” that extends from the hood to the bumper. It also features a redesigned grille, replacing the signature Lexus spindle grille as the brand looks for a new identity in the electric era.
Inside, the new 2026 ES features the latest version of the Lexus Interface multimedia system. The setup includes a 14″ touchscreen with wireless Apple CarPlay and Android Auto, and a 12.3″ driver display cluster.
Based on the redesigned TNGA GA-K platform, the new ES will be available in battery electric (BEV) and hybrid (HEV) powertrains for the first time.
The 2026 Lexus ES lineup consists of two models: the ES 350e, a front-wheel-drive (FWD) model, and the ES 500e, an all-wheel-drive (AWD) model.
Lexus expects the ES 350e to have a driving range of 300 miles when fitted with 19″ wheels, while the ES 500e has an estimated driving range of 250 miles.
Both the ES 350e and 500e feature a built-in NACS port to recharge at Tesla Superchargers. Using DC fast charging, it can recharge from 10% to 80% in about 30 minutes under “ideal conditions,” according to Lexus.
With its debut just around the corner, Lexus offered a closer look at the new 2026 ES inside and out in a new video.
Lexus has yet to announce prices, but the redesigned ES is expected to start at about $45,000 to $50,000, or slightly more than the outgoing model.
After launching the upgraded RZ earlier this month, Lexus said the ES would be next. It’s expected to go on sale in Spring 2026.
What do you think of the redesigned 2026 ES? Do you like the new Lexus design? Let us know your thoughts in the comments below.
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Tesla has launched a new version of the Model Y in China, and it’s achieving an impressive new range rating – thanks to a new battery cell from South Korea’s LG.
The new variant, a five-seat, rear-wheel drive long-range model, has been released with an 821-km range based on China’s CLTC standard.
While the CLTC rating is known to be optimistic, 821 km (about 510 miles) is an impressive number and the longest range Tesla has offered in its Model Y lineup to date, which is going to help it be more competitive in the Chinese market.
This new extended range Model Y version is made possible by using the 78.4-kWh ternary lithium-ion battery pack from LG Energy Solution, the same pack found in the also recently launched 830-km range Model 3 variant.
The new long-range RWD Model Y starts at RMB 288,500, which translates to just over $40,500 USD.
The launch comes at a critical time for Tesla in China, which has seen its sales slump in recent months. The automaker recorded its lowest monthly sales in October since November 2022, falling out of the top 10 list for new energy vehicle (NEV) sales.
That’s despite a continued surge in electric vehicle sales in China. Tesla is not benefiting from it amid strong competition.
According to local Chinese media reports, the new 821-km Model Y is already gaining traction with some anecdotal reports of enthusiasm at Tesla stores.
The reports are partly supported by Tesla quickly extending delivery timelines from 2-4 weeks to 4-6 weeks just hours after launch.
Electrek’s Take
I think this is going to be suitable for a decent short-term bump in demand, but it’s still on the expensive side for the Chinese market.
For example, now the Model Y beats the Xpeng G6’s max range of 755 km, but the G6 with this range costs 234,900 RMB (approximately $32,900 USD), which is significantly cheaper.
Every 10,000 RMB tranche lower means a lot more demand in China.
Tesla needs to launch its new “standard” versions to start making a difference with demand long term in China.
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