Tanks are equipped with HE shells.
Explosions and gun damage seems to be pretty low, though, especially handgrenades, plane bombs, HE shells and pistols.
I also hope they´ll give balistics and weapon/vehicle handling a work-over as it doesn´t feel right, yet. I also feel that the ME-109 is quite tough to kill, whereas the P-38 is easily being shredded by both enemy planes and enemy Flak.