HomeEuropeVolkswagen CEO says carmaker will overtake Tesla on EV sales by 2025

Volkswagen CEO says carmaker will overtake Tesla on EV sales by 2025

The chief government of Volkswagen believes Europe’s greatest carmaker can overtake Tesla to change into the world’s largest vendor of electrical automobiles by 2025.

Chatting with CNBC’s “Squawk Field Europe” on the World Financial Discussion board in Davos, Switzerland, on Tuesday, Herbert Diess mentioned assuaging provide chain points would seemingly assist create some momentum for the German auto big over the approaching months.

“Markets are at all times in regards to the future,” Diess mentioned when requested why buyers valued Tesla at such a premium to different conventional carmakers, comparable to Volkswagen.

“Tesla presently is within the lead in terms of EVs, most likely additionally it’s the most digital automobile firm already and so they have some benefits,” he continued. “We’re nonetheless aiming at maintaining and possibly overtaking by 2025 in terms of gross sales.”

Diess mentioned Tesla has been in a position to exhibit good outcomes and excessive returns with a reputable enterprise mannequin. Nonetheless, he reaffirmed his perception that Volkswagen might quickly shut the hole in terms of EV gross sales.

“I feel for Tesla, additionally, ramping up now will most likely be a bit tougher. They’re opening up new crops and we try to maintain up pace. We expect within the second half of the yr, we’re going to create some momentum,” Diess mentioned.

Volkswagen’s Frankfurt-listed shares traded round 0.9% decrease on Tuesday morning, roughly consistent with losses within the autos sector on the pan-European Stoxx 600.

Provide chain disaster to alleviate

Greater than two years into the coronavirus pandemic, the auto trade continues to grapple with the problem of acquiring essential elements and constructing sufficient automobiles to satisfy demand.

Shortages of crucial provides, notably in terms of battery manufacturing, are anticipated to be an ongoing constraint for the expansion of electrical automobile gross sales within the years forward.

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