Volkswagen Aims to Overtake Tesla by 2025
Volkswagen’s chief executive says he believes the German automaker can overtake Tesla for worldwide sales of EVs by the year 2025. The Volkswagen Group’s CEO Herbert Diess spoke at the World Economic Forum in Switzerland recently saying, “Markets are always about the future,” when asked why investors treasure Tesla. “We are still aiming at keeping up and probably overtaking by 2025 when it comes to sales.”
Diess said alleviating supply chain issues would likely help create some momentum for VW over the coming months. He mentioned that Tesla has been able to demonstrate good results and high returns with a credible business model. However, he reaffirmed his belief that Volkswagen could soon close the gap when it comes to EV sales. “I think for Tesla, ramping up now will probably be a bit more challenging. They are opening up new plants and we are trying to keep up speed. We think in the second half of the year, we are going to create some momentum,” Diess said.
While all automakers have had to endure the recent pandemic and supply chain woes, the future for Volkswagen remains bright and looks forward to building enough new vehicles to meet public demand.
When it comes to producing all-electric vehicles, shortages of supplies for battery pack production is an ongoing concern. However, Diess remains hopeful, expecting some relief in obtaining semiconductor supplies very soon. “I would say that we would see an alleviation of this situation towards mid-year and by second half we should be in better shape.”
Speaking at the Financial Times Future of the Car Conference about the race for EV supremacy over Tesla, Diess said, “It will be a tight race, but we will not give up on it.” When looking at the U.S. market, VW aims to more than double its market share. Diess says this will require an assembly plant in America and local battery production. Regardless, VW appears to be up for the challenge.