The CEO of Volkswagen believes Europe’s largest automaker could overtake Tesla to become the world’s largest seller of electric cars by 2025.
Herbert Diess , CEO of Volkswagen Group, put aside his constant praise of Tesla for warning the electric car maker, claiming that his company could overtake the leader by 2025.
Speaking at the World Economic Forum in Davos, Dess acknowledged that Tesla remains the market leader for electric vehicles. But he said Volkswagen’s sales of electric cars could outpace those of the California-based automaker by the middle of the decade.
Markets are always about the future, said Dies, when asked why investors value Tesla at such a premium over other traditional automakers, such as Volkswagen. Tesla is currently at the fore when it comes to electric vehicles. It is also probably the most digital car company and has some advantages. But we’re still aiming to keep up with that, and possibly surpass it by 2025 when it comes to sales.
Until the end of March, the German company delivered 99,100 electric cars to customers around the world. But Tesla managed to deliver 310,048 electric cars in the same period, more than three times the total of its German rival.
Supply chain issues have clouded the capabilities of many manufacturers, which has affected both Volkswagen and Tesla due to the high demands faced by each automaker.
Reducing supply chain issues is helping create some momentum for the German auto giant over the coming months, Diess said.
Volkswagen wants to beat Tesla in sales
While Dies knows that Tesla is increasing production across the US, China and Europe, he believes that once Volkswagen gains momentum it may soon challenge its competition.
The CEO of the German company said that Tesla was able to show good results and high returns through a reliable business model. However, he reiterated his belief that his company could close the gap soon when it comes to electric vehicle sales.
“It’s probably going to be a little more difficult to keep up with Tesla now,” he said. Tesla opens new factories. But we are trying to keep up with the speed. We believe that in the second half of the year, we may gain some momentum.
Dess has publicly paid tribute to Tesla founder Elon Musk in the past, and last year Musk attended a high-profile meeting of Volkswagen as a guest speaker, prompting the Volkswagen board to question Dees’ role as group president.
Tesla markets electric cars as its sole brand. But the German company has electric cars across its major brands, Volkswagen, Audi, Skoda, Cupra and Porsche.