Elon Musk on Wednesday visited the Tesla Gigafactory near Berlin, which was forced to halt production last week after losing power during a suspected arson attack.

Pictures show Musk waving to workers as he arrived at the factory in German state Brandenburg and addressing them on stage in a tent where employees gathered to meet him.

Local media also reported that Musk told the crowd “I love you” in German, but that his further comments were drowned out by a factory vehicle parking in front of journalists and blasting music.

Musk is expected to meet regional politicians during his visit to Germany, local media said, citing state government sources. CNBC could not independently verify the reports.

Last week, the Gigafactory was left without power and had to temporarily stop production after a suspected arson on an electric substation close by. Tesla said that the incident was aimed at the company, in a statement on social media platform X.

Left-wing extremist group ‘Vulkangruppe’ claimed responsibility for the attack in a letter posted online, criticizing Tesla’s environmental competencies. Regional authorities are still investigating the case.

The Brandenburg factory is slated for expansion, but the project has met significant resistance from locals and environmental groups, as it would mean the destruction of forests in the area. Activists have set up camp near the factory in protest.

The plant was able to rejoin the power grid earlier this week. Production resumed at the Gigafactory on Wednesday, Michaela Schmitz, chair of the works council at the plant, told local radio channel rbb24, according to a CNBC translation.

Employees received their full salaries during the production outage, she added.

Elon Musk said Chinese electric automakers will find “significant” success outside of China, even as his firm Tesla faces intense competition from these same companies.

“The Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established,” Musk said on Tesla’s earnings call on Wednesday.

“Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.”

It’s not the first time Musk has heaped praise on Chinese EV makers. Last year, the billionaire called Chinese EV firms “the most competitive in the world” and said they are likely to be among the world’s top auto companies.

“If I were to guess … probably some company out of China is the most likely to be second to Tesla,” Musk said.

Tesla’s own shares slid in pre-market trade on Thursday, after the company posted earnings that missed expectations and warned of a slowdown in 2024.

MUNICH — You’d be forgiven for thinking that the IAA, one of the world’s biggest motor shows, is actually a technology conference, after tech giants like Amazon, Qualcomm and Samsung all showed up for this year’s event.

Their presence underscores demand for traditional automakers to boost the technology in their vehicles, from software to hardware, as they look to catch up with Tesla in the electric car future. Ramping up technology features is also essential to meet buyer expectations in China.

“Tesla and the Chinese start-ups. This is the two-way force they [traditional automakers] are experiencing, driving them to have more user experience in the car,” Mohit Sharma, automotive research analyst at CCS Insight, told CNBC.

They can’t do it alone. Carmakers are looking at tech firms for help, while also trying to work on items like software in house.

Part of Tesla’s global success has come down to its technology in a number of areas, from batteries to Autopilot — its advanced driver assistance system (ADAS), which uses semi-autonomous driving features. The screen within Tesla cars is also akin to that of a smartphone.

Those features are what rival automakers are trying to build and get ahead on.

There are two major operating systems in the smartphone sphere — Google’s Android and Apple’s iOS. That’s not the case in the car world, when it comes to the ever popular infotainment systems and screens.

Auto firms are now focusing on developing their own operating systems, so that using car screens more closely resembles working with the apps of a smartphone.

To that end, Mercedes-Benz revealed further details at the IAA about its self-developed operating system called MB.OS, which will help power various features from the giant screen across the dashboard to the voice assistant in its upcoming EVs.

Swedish EV player Polestar this year created a joint venture with Xingji Meizu — a smartphone maker owned by Chinese auto giant Geely — and plans to launch its own smartphone in December, when the Polestar 4 car begins delivery to customers. Meizu is making an operating system for Polestar cars based on its own product, called FlyMe. The idea is that users would be able to have a seamless experience between the smartphone and Polestar’s operating system in the company’s cars.

U.S. chipmaker Qualcomm was also in attendance at IAA. The company is making a big push into the automotive space, where its chips can be used to help power artificial intelligence applications within vehicles. One example it showed was a car assistant that could find a recipe for chicken enchiladas and add the ingredients to a shopping list. 

It’s not just about the screen — automakers are also looking into using all parts of the car to display information. BMW said the Neue Klasse EV models it unveiled on Saturday will have what it calls Panoramic Vision, a heads-up display which projects information on the windscreen at the driver’s eyeline.

To make the drive as comfortable as possible, U.S. EV maker Lucid showed off the massage feature of the seats in its Air Midnight Dream Edition car.

A big part of the focus of Tesla technology has surrounded its Autopilot ADAS. No car can operate autonomously — at least from a legal perspective — but automakers are ramping up the driverless features and capabilities.

Tesla is perhaps one of the furthest ahead with its ADAS features, followed by young Chinese players like Xpeng and Nio.

Many automakers aspire to become major players in the world’s biggest and highly competitive electric vehicle market, China. In a bid to differentiate themselves from rivals, Chinese firms have talked up the tech features of their vehicles, from software to ADAS capabilities — and Chinese customers expect the latest tech perks.

“It’s not just good enough to bring a great European design to China, you have to be very, very special about what you offer to the market when it comes to software,” Polestar CEO Thomas Ingenlath, told CNBC in an interview Tuesday.

Heeding that sentiment, foreign companies from BMW to Mercedes are looking to invest heavily in tech development, as they aim to boost EV sales in China.

Volkswagen CEO Oliver Blume on Wednesday said that the company is ramping up its number of software engineers in China.

“We want to operate with China speed in China,” Blume said at the IAA conference.

Luxury electric vehicle maker Lucid appears to have a demand problem.

The company said during its fourth-quarter earnings report Wednesday that it had “over 28,000” reservations for its Air sedan as of Feb. 21. That was a surprise, given that the company had claimed “over 34,000” reservations in November and delivered fewer than 2,000 vehicles in the fourth quarter.

Even more surprising: Lucid said it plans to build just 10,000 to 14,000 vehicles in 2023, far fewer than the roughly 27,000 Wall Street analysts had expected — and than the roughly 34,000 vehicles per year that Lucid’s factory is set up to build.

Shares of the company have fallen about 15% since the Wednesday report.

Lucid faced a rough road getting the Air into production. The company spent much of the first half of 2022 scrambling to secure key components and untangling logistics snags. Now, with production running more or less smoothly, it seems to be facing a new problem: Not enough of its reservations are converting to orders.

CEO Peter Rawlinson acknowledged as much during the earnings call when he reminded listeners that reservations aren’t binding.

“We’ve solved production. That is not the gating issue here now,” Rawlinson said. “My focus is on sales. And here’s the thing: We’ve got what I believe to be the very best product in the world. … Too few people are aware of not just the car, but even the company.”

Rawlinson went on to say he believes that to be an “entirely solvable problem” and plans to focus on “amplifying customer awareness” in 2023.

More marketing might help. But clearly, demand for Lucid’s vehicles isn’t materializing as quickly as the company expected, which raises some tough questions for investors.

First, how big is Lucid’s potential market? Any estimate of how much Lucid could grow has to start with an estimate of the “total addressable market,” and it appears the company’s estimates on that front may have been too rosy, given that its factory is set up to produce many more vehicles than it’s building now.

Running an auto factory well below capacity isn’t exactly a route to profitability, as Chief Financial Officer Sherry House conceded during Lucid’s earnings call.

“As we produce vehicles at low volumes on production lines designed for higher volumes, we have and we will continue to experience negative gross profit related to labor and overhead costs,” House said.

That leads to a second, related question: How long will Lucid have to run its factory at a loss? Or, put another way, how long will it take Lucid to get to profitability — and how much money will it have to raise between now and then?

Bank of America analyst John Murphy has long been bullish on Lucid, but in a note to investors following Lucid’s earnings report, he cut the bank’s rating on the stock to hold, from buy. Murphy wrote that he now thinks Lucid won’t break even before 2027, and that the company will need to raise more capital sooner than he had previously expected.

The good news is that Lucid has a deep-pocketed investor. Saudi Arabia’s Public Investment Fund owns about 62% of Lucid, and has shown — most recently in December, when it invested an additional $915 million — that it’s still willing to fund the company. As long as it has the Saudi fund’s backing, Lucid should be able to keep going.

But the road to profitability — and to a big payday for Lucid’s investors — is now looking longer.

U.K.-based startup Tevva on Thursday launched a hydrogen-electric heavy goods vehicle, becoming the latest company to make a play in a sector attracting interest from multinationals like Daimler Truck and Volvo.

According to Tevva, which says it has raised $140 million in funding, its vehicle will have a range of as much as 310 miles, or slightly under 500 kilometers.

Refilling the hydrogen tanks will take 10 minutes while charging the battery “from fully depleted to 100%” will take five to six hours.

The company’s first hydrogen-electric truck will weigh 7.5 metric tons, with later versions planned to weigh 12 and 19 metric tons.

In a statement, Tevva sought to explain the rationale behind combining a fuel cell and battery. “The fuel cell system tops up the battery, extending the vehicle’s range and allowing the truck to carry heavier loads over longer distances.”

Alongside its hydrogen-electric truck, the business has also developed an electric truck that it says has a range of up to 160 miles. Details of both the electric and hydrogen-electric trucks had been previously announced by Tevva.

In an interview with CNBC’s “Street Signs Europe” on Thursday, Tevva CEO Asher Bennett was asked whether his company was looking to diversify into smaller vehicles.

“We’re not interested in developing the smaller vans or the pickup trucks,” Bennett said. “Those are, in many instances, very similar technology to the larger EV sedans, which work very well,” he added.

“We’re very focused on the heavy goods trucks and we’re slowly going heavier and heavier because those are the segments that are much harder to electrify.”

With governments around the world looking to reduce the environmental footprint of transportation, a number of companies in the trucking sector are exploring ways to develop low and zero-emission vehicles, including ones that use hydrogen.

Last month, Volvo Trucks said it began to test vehicles that use “fuel cells powered by hydrogen,” with the Swedish firm claiming their range could extend to as much as 1,000 kilometers, or a little over 621 miles.

Gothenburg-headquartered Volvo Trucks said refueling of the vehicles would take under 15 minutes. Customer pilots are set to begin in the next few years, with commercialization “planned for the latter part of this decade.”

Alongside hydrogen fuel cell vehicles, Volvo Trucks — which is part of the Volvo Group — has also developed battery-electric trucks.

Like Volvo Trucks and Tevva, Daimler Truck is focusing on both battery-electric vehicles and ones that use hydrogen.

In an interview with CNBC last year, Martin Daum, chairman of the board of management at Daimler Truck, was asked about the debate between battery-electric and hydrogen fuel cells.

“We go for both because both … make sense,” he replied, before explaining how different technologies would be appropriate in different scenarios.

While there is excitement in some quarters about the potential of hydrogen-powered vehicles, there are hurdles when it comes to expanding the sector, not least when it comes to the development of adequate refueling infrastructure. The way hydrogen is produced is also an issue.

Both of these points were acknowledged by Volvo Trucks in June when it pointed to challenges including the “large-scale supply of green hydrogen” as well as “the fact that refueling infrastructure for heavy vehicles is yet to be developed.”

Hydrogen can be produced in a number of ways. One method includes using electrolysis, with an electric current splitting water into oxygen and hydrogen.

If the electricity used in this process comes from a renewable source such as wind or solar then some call it “green” or “renewable” hydrogen. Today, the vast majority of hydrogen generation is based on fossil fuels.

For its part, Tevva said it would help its customers “access sustainable and affordable hydrogen supplies safely and conveniently, alongside their purchase or lease of Tevva Hydrogen Trucks.”