Shock absorbers KONI or OEM Volkswagen

I have the entry level E46 Ground Control setup that includes Koni shocks. It's a vastly superior ride to the bilstein PSS kit I had before this but the kit is not perfect

Koni yellows are adjustable to suit your preferences. Bilsteins are not. Both are high quality and arguably an improvement over the stock (Sachs probably) dampers. I run my Koni yellows on full soft and they’re very comfortable.

I love my Koni yellows but I do drive them on their softest setting.

I struggled with the same decision for my 2002 325i, We've used Bilstein sports for many years but always for sportier cars +/or track use. On the E46 decided to go with Koni Sports (yellow) which are adjustable. Ride is less harsh the Bilsteins, more comfortable and well controlled - no regrets. I also installed H&R sport springs FYI.

I love my Koni active reds, swapped to them from bilstein b8s and won’t look back, smoother ride and 4 years on them they haven’t sagged or blown. I run them on my daily e92.

I installed it on my RF and there are no issues.

I'd consider the KONI STRT if available for the 2012.

I've been using Koni Orange's for nearly as long as I've had my FiST and I like them, but I don't think they are the best option if you plan to track or autox (Koni Yellows would be a better fit for that). I like them because they are more comfortable with the oem springs than the oem shocks.

I think it really depends what you pair them with though. I did try them with eibach springs but I didn't like them there (I found out later because eibachs are softer springs and seem to pair better with bilsteins B8s) . The oranges are intended for oem springs, however I've heard of others liking them lowered with swift springs (which are stiffer than the eibachs)...but I don't have personal experience with the swifts.

These seem like great value compared to the non-adjustable Koni Active Select’s I just self-fitted to my MY22 MIC Y ($1250 AUD). Same high speed wallow you mention and mismatch with the stiff springs.

Replacing the shocks with Konis voids your drivetrain warranty. I had a local shop do this same swap on a new 24 MYLR. A month later the front motor stripped the splines off of both half shafts. Not only did Tesla rule that just the presence of the Konis voided the motor/half shaft warranty, they wouldn't do the repair unless they replaced the Konis with OEM shocks. I appealed up the chain but no luck. An $8K learning experience. Really rides well, though.