The CEO of the Volkswagen group plans to double Tesla on a global scale by 2025, taking advantage in particular of the supply problems of its American rival.
If they seem almost friends in view of the last meetings full of smiles and more than cordial exchanges, they are still rivals to the highest degree. Herbert Diess, CEO of the Volkswagen group, never stops mentioning his rival Tesla, whether in very formal internal meetings or with the press. And the latest outing from the German is a form of strategic promise which obviously only engages those who believe it. In this case, often the shareholders. Herbert Diess explained to the Financial Times that he saw the German group ahead of Tesla by 2025 in sales of electric cars.
Tesla in the hard?
VW chief claims carmaker can overtake ‘weakening’ Tesla by 2025 https://t.co/fuMCjdNn0J
—Financial Times (@FT) June 28, 2022
Lately, Elon Musk no longer even hides his fear of seeing Tesla’s meteoric progress interrupted by major economic and structural problems, and no longer hesitates to talk about job cuts. “Both in Berlin and Austin, the factories are huge money incinerators right now. We would prefer a giant roar, which would be proof that the money is flowing. Berlin and Austin are losing billions of dollars because there is a lot of spending for almost no return”, explained the whimsical businessman, also boss of SpaceX.
Tesla is indeed affected by “structural” problems concerning the new 4680 type batteries. Some dare to say that “it or it breaks” for Tesla. At the same time, Volkswagen doesn’t have to deal with building and scaling up factories that already exist. One of the only challenges the German has to face is the supply of parts and batteries. And with the proliferation of electric models from Volkswagen, Seat, Skoda and Audi, overtaking Tesla by 2025 is indeed not excluded.
“Tesla has to manage both the ramp-up of the factories in Texas and Germany, while increasing the pace in Shanghai (where the Covid is present, let’s remember). It will take a lot of strength from it. We can seize this opportunity to catch up with them and take the lead by 2025”, commented Herbert Diess.