Volkswagen will overtake Tesla in electric vehicle sales by 2025, says CEO

Tesla is currently the world’s leading electric vehicle manufacturer, but the competition in the EV sector is heating up.

The CEO of Volkswagen, Herbert Diess, told CBNC at the ongoing World Economic Forum in Davos, Switzerland, on Tuesday that the company plans to overtake Tesla in electric vehicle sales by 2025.

Volkswagen is the leading car manufacturer in Europe and one of the largest in the world. However, when it comes to the EV sector, Tesla continues to lead the way in terms of sales and innovation.

When asked why investors value Tesla above the traditional car companies like Volkswagen, Diess said the markets are always about the future. He said;

“Tesla currently is in the lead when it comes to EVs, probably also it is the most digital car company already, and they have some advantages. We are still aiming at keeping up and probably overtaking by 2025 when it comes to sales.”

The Volkswagen executive praised Tesla, stating that the company has been able to demonstrate good results and high returns with a credible business model. However, he is confident that Volkswagen will close the gap in terms of EV sales over the coming years. He said;

“I think for Tesla, also, 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.”

The automobile industry has been affected by a shortage of semiconductors over the past few years. Diess said progress had been made in this area, and the shortage could soon improve. The Volkswagen CEO said;

“I would say that we would see an alleviation of this situation towards mid-year and second half we should be in better shape — if the situation is not getting any worse, which I don’t think so.”

He added that he doesn’t expect the chip shortage to be completely over, but he expects the situation to improve over the coming months.