Meghana KandraDeutsch bank reports Volkswagen is going to surpass Tesla by next year if they keep up the competition. The introduction of electric cars surged the shares of automobile companies. For Volkswagen, there is a 12% increase in common stock.
After Volkswagen’s plans to set up an EV hub outside Barcelona are implemented, there is no doubt the company will surpass Tesla. The EV hub is expected to produce 500,000 cars per year, which is equal to the number of cars Tesla manufactured last year.
Key component
Volkswagen’s battery-electric car launched in 2020, is fully electric. The zero emission-quality with two electric motors isn’t just technically efficient, but also comfortable for a user. This high-quality product, along with their further plans on trucks known as Traton SE has come to attention.
They plan to launch their battery-electric car in the range of € 20,000 to € 25,000. Furthermore, the investment in their technology is expected to boost up by more than a billion euros. Considering the lost costs for commercial use, their battery vehicle isn’t just eco-friendly, but also cost-effective.
First since the scandal
The famous Volkswagen scandal in 2015, was so huge, the news of Volkswagen surpassing Tesla came as a surprise. Not only they picked up their image but also going to be the best.
If it weren’t for the potential their battery-powered car holds, it wouldn’t be possible to gain a reputation. The Volkswagen stock shares in both the US and Germany have surged about 22% and 16%, respectively.
The chief executive officer of Traton SE, the company is going to be prepared for a world full of commercial electric vehicles. As diesel usage goes down, their futuristic ideology is drastically going to change how the world works.
VW in the US
Volkswagen plans to set up electric vehicle infrastructure in the US. Although their ambitious goals focus on erasing the past scandal, this change could change many things in America.
As an effort to fight climate change Joe Biden supports expanding their EV tax credit. With government’s support usually, any company can target the US market. But, it is difficult for Volkswagen to get into the US market. Tough due to an antitrust suit 2019 filed by Prevent USA. The need to step in and do more than needed for Volkswagen.
According to Scott Keogh, the CEO of Volkswagen USA, the company plans to have 100% electric cars in the US. For VW, the US market is of the highest potential. The fierce competition between Tesla and Volkswagen is getting interesting with time.