For the second time this week, Volkswagen is halting production of some of its most popular electric cars. VW extended its production pause to a second plant in Germany, impacting the ID.4 and ID.7.
Production lines at Volkswagen’s recently upgraded Emden plant in Germany were at a standstill Thursday.
The news comes amid a lack of electric motors for the ID.4 and ID.7 models, a spokesperson told German press agency dpa.
Volkswagen plans to extend the production stop into Friday and Monday. Emden is Europe’s third-largest auto distribution hub, producing models such as the Passat, Alltrack, Atreon, and GTE.
The automaker announced last year that it will invest around $1.1 billion (1 billion euros) to advance EV production at the site.
Volkswagen’s ID.4 was the first electric vehicle to roll off the assembly line at Emden last May. Following its Zwickau site, it marked the second plant in Germany to begin building EVs.
Production of the flagship ID.7 began at Emden in August as the second EV to be built at the site.
Despite the massive investments, slowing demand caused Volkswagen to reduce EV output at the plant this summer.
Volkswagen celebrates ID.7 production at Emden (Source: Volkswagen)
Volkswagen production cut over e-motors or demand?
VW has cut EV production at several German plants over the past few months. Higher inflation and interest rates, fewer subsidies, and more competition have slowed orders.
Earlier this week, Volkswagen said it was halting production at its Zwickau factory for around three weeks. A spokesperson said, “The production of e-drives at the Volkswagen Group Components site in Kassel is currently only possible to a limited extent.”
(Source: Volkswagen)
According to the source, the stoppage will impact the VW ID.4, ID.5, and Audi Q4 e-tron. The ID.3 and Cupra Born will not be affected.
VW already planned to shut down a production line at the plant over the holidays, citing low demand.
Due to waning orders, the automaker cut around 300 employees from its Dresden plant toward the end of October. The site also halted ID.3 production earlier this year.
Electrek’s Take
They say there are two sides to every story. Is Volkswagen pausing production due to a lack of electric motors? Or is demand slipping?
Volkswagen’s CFO, Arno Antilitz, said orders for electric cars were down to 150,000 in the third quarter. That’s 50% lower than last year’s 300,000 orders.
Europe was by far VW’s largest EV market, accounting for 61% of all electric models sold through September. China was second.
Although sales were up 4% in China, Antilitz warned the company could lose market share until new models with XPeng begin rolling out. Volkswagen has already drastically slashed prices to keep up in China, its largest market by profits.
Meanwhile, head of strategy at VW Group America, Reinhardt Fischer, said the automaker is “not scaling back plans for EVs in the US.” Fischer added VW aims to launch an EV under $35,000 in the US.
Tesla has opened orders for the Model Y Long Range RWD for $45,000 in the US. It’s the new entry-level Model Y following the design refresh earlier this year.
Since launching the updated Model Y earlier this year, Tesla has only offered the best-selling electric SUV in a single Long-Range AWD configuration.
First, it was as a fully-loaded $60,000 Launch Edition, and last month, it started deliveries of the regular Model Y AWD starting at $49,000.
Now, the automaker is starting to take orders for the new Model Y Long Range RWD
The new trim starts at $44,990 and enables 357 miles of range – an extra 30 miles over the AWD version.
However, due to its single motor powertrain, the lower-priced version is slightly slower with a 0-60 mph acceleration in 5.4 seconds rather than 4.6 seconds.
The automaker says that deliveries of the new version will start in the US in the next 3 to 5 weeks. It launched the new Model Y RWD in Europe weeks ago.
Tesla also offers a Standard Range RWD in Europe and China for even cheaper, and deliveries have already started in China.
Electrek’s Take
Tesla appears to have waited to open orders for the Model Y RWD in the US to optimize demand for the Long Range AWD.
But now it needs a cheaper model to sustain demand at the current production rate.
In the coming weeks, it will start building a mix of RWD and AWD in Fremont and Austin to
Interestingly, Tesla currently only offers the subsidized 1.99% financing rate on the Model Y Long Range AWD. I would assume that Tesla plans to take advantage of the boost in demand that the cheaper model will create.
However, US buyers probably won’t have to wait more than a few weeks before Tesla starts to offer lower interest rates on all versions, like it already does in Europe and China.
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On today’s thrilling episode of Quick Charge, we’ve got some of the highlights of the 2025 ACT Expo, including the all-electric Windrose and Mack Pioneer Class 8s trucks, a hydrogen fuel sell [sic] from Honda, a fun charging surprise, and – after an eight year wait – we finally get a ride in the all-new (in 2017) Tesla Semi!
ACT Expo is North America’s premier clean truck and transport trade show – and for 2025 it was bigger than ever, with more exhibitors and more, more capable battery electric vehicles than ever. The downsides? NACFE have scored with their “messy middle” messaging, and the return of “clean diesel” talking points. We’ve got a brief rundown and links to all the details, below.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Abundance Energy, sonnen, and Energywell are teaming up to bring smarter, more resilient energy to Texas homes through a huge new virtual power plant (VPP) initiative.
By combining behind-the-meter home batteries, solar power, and advanced energy software, the trio is building a network of connected homes that can work together to support the grid. Customers who install sonnenConnect home batteries through Abundance Energy will now be part of a system that automatically stores and shares power when it’s needed most. That means lower electricity bills, better reliability during extreme weather, and a cleaner energy mix overall.
The VPP will cover all of ERCOT, with the primary focus in the greater Dallas-Fort Worth and Houston areas. Each home will have two 4.8kW/20kWh sonnenCore+20 battery units. The current customer base that will be enrolled in the VPP equals 60 MWh, and this will continue to grow each month. The VPP is already on track to replace Tesla as the largest virtual power plant in Texas by the end of 2026.
Here’s how it works: The batteries are continuously managed using Energywell’s Proton platform and sonnen’s smart VPP technology. This system monitors solar generation, customer energy use, and real-time electricity prices, and then decides when to charge or discharge each battery. Instead of just sitting idle, these batteries turn into mini power plants that can react to grid needs in real time.
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And when thousands of batteries work together, they form a virtual power plant—a decentralized network that reduces the strain on the grid, especially during peak demand or power outages. Unlike traditional power plants, VPPs don’t burn fossil fuels. They use clean, stored electricity from homes and businesses, helping cut carbon emissions while keeping the lights on.
“Our mission is to empower homeowners with smarter, more sustainable energy solutions,” said Thomas Mandry, CEO of Abundance Energy. “This partnership delivers a new kind of VPP model that benefits customers and strengthens the Texas grid.”
Blake Richetta, CEO of sonnen, added, “With Abundance Energy and Energywell, we’re showing how everyday homeowners can become part of the solution to Texas’ energy challenges.”
As Texas continues to face grid reliability issues, especially in extreme heat or cold, this kind of flexible, customer-powered energy system will make homes more resilient and give customers more control over their power.
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