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Bad news for Tesla and Elon Musk — Germany and China seal the alliance of the future

Kelly L. by Kelly L.
March 2, 2025
in Mobility
VW in Germany previews Atlas in China

Credits: Cars.co.za

VW out of Germany has launched its Teramont Pro EV in China and it’s looking good, but US car enthusiasts are more interested in what this means for the new Atlas when it launches. Volkswagen has a strong presence in China and has remained close to the top of the favored brands list for decades.

The Teramont Pro is a collaboration between the German auto powerhouse and its local partner, GAIC, and if it is in fact a preview of the as-yet-unreleased 2026 Atlas model, then we have an idea of what the United States market can expect.

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The VW Atlas EV is on the verge of being outdated now, seeing as it’s been around since 2017, and the United States is due for the release of the next-generation 2026 model. The reason why the Teramont that’s been released in China is catching attention in the US is because it previews the upcoming Atlas.

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But there’s another reason why Americans, and one American tech billionaire in particular, are following Volkswagen’s progress in the Asian country with interest, and that’s because VW is major competition for Tesla. China is Elon Musk’s brand’s second-largest market after the United States, but competition from a strong showing by VW’s new Teramont Pro may shift Tesla’s strong position.

VW’s position in China is fortified with a SAIC partnership

The Teramont Pro EV that’s just hit the Chinese auto market was developed with VW’s local partner in China, the Shanghai Automotive Industry Corporation, or SAIC. This collaboration strengthens VW’s ties to the market and is another factor making Tesla less confident of its position.

This applies in the US market as well. The 2026 Atlas will be coming out soon and it’s expected to be a staunch contender in the electric vehicle market. Tesla won’t appreciate a knock at this point, considering the Cybertruck’s recent poor sales showings.

What does the Termanont Pro have that we can expect in the new Atlas?

US drivers can expect the upcoming 2026 VW Atlas EV for the American market to be almost—if not completely—identical to the Teramont Pro, which is just the name the Atlas has been going by in other countries since it was released eight years ago.

The new Atlas will be a bigger, more advanced three-row, seven-seat family-sized electric crossover that’s been redesigned with a streamlined, sports-style flair, a modern, high-tech interior with up to six screen displays, and a completely new engine. Power is delivered by a fifth-generation EA888 engine that delivers 295 lb-ft of torque and 268 hp.

The exterior of the new Atlas

The Teramont Pro’s exterior has a fully enclosed grille on the front that encompasses large headlights. The front fascia has a sporty vibe with an assortment of intakes.

Sleek bodywork is found at the back together with flush-mounted door handles. Other highlights include a spoiler and a rear light bar with pixel-like taillights.

The Atlas crossover is bigger now, measuring 203.1 inches long, 78.4 inches wide, and 70.4 inches tall. That makes the Teramont Pro 2.4 inches longer than the 2017 Atlas, while width and height are also increased.

What’s in the interior?

In the interior, there’s a digital instrument cluster, a front passenger display, and a floating infotainment system. There’s an option to equip the model with three extra screens, which suggests the new Atlas will have a rear entertainment system option for those who can afford to spend more.

Additional features include a Harman Kardon sound system, a sunroof, 30-color ambient lighting, a fragrance diffuser, and a “queen” front passenger seat with an electric footrest and massage and ventilation options.

Other likely highlights include rear climate controls, a floating center console, and a wireless smartphone charger.

Where does the Teramont Pro/Atlas’ power come from?

The 2026 Atlas will be fitted with a new EA888 Evo5 2.0-liter turbo engine in its fifth generation form. It promises enhanced responsiveness, lower fuel consumption, and reduced carbon emissions, and it required extensive updating to achieve this.

The crankshaft, pistons, connecting rods, and other moving parts have been “comprehensively strengthened,” according to Volkswagen. The lubrication system has also been improved, and the intake and intercooler also underwent upgrades.

It’s evident that the Volkswagen Atlas is shaping up to be a winner and Elon Musk has good reason to worry about Tesla’s position in both of its top markets. This won’t be helped by the fact that Tesla didn’t even make a rated list of top cars in its class.

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