Herbert Diess, CEO of Volkswagen, predicted the possibility of the largest car manufacturer in Europe overtaking the American electric car giant, Tesla, by 2025, and then Volkswagen would become the largest seller of electric cars in the world. He said alleviating supply chain issues will likely help create some momentum for the company in the coming months.
Speaking at the World Economic Forum in Davos, Dess said: “Tesla is currently at the forefront when it comes to electric vehicles, and is probably also the most truly digital car company, and it has been able to generate good results and high returns through a reliable business model. However, I assure you of my belief once once more that we at Volkswagen still aim to match it and possibly surpass it in sales within 3 years.”
He added that the same competition strategy is also present in Tesla, and acceleration is likely to be more challenging now, especially as they are opening new factories and we are trying to keep up with that and get some momentum in the second half of the year.
When asked why investors value Tesla at such a premium over other traditional automakers such as Volkswagen, Dess replied that markets have always revolved around the future.
Last year, Tesla topped the electric car industry with 936,000 vehicles, an 87% increase over 2020 sales of just under half a million vehicles. (agencies)
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