By 2024, Volkswagen may sell more electric vehicles than Tesla

Volkswagen Group said this year that it will invest $7.1 billion in North America to build battery-electric vehicles, with 25 new EV models available to customers in the United States, Canada, and Mexico by 2030. By the start of the next decade, it hopes to have 55 percent of its cars running on electricity.

Volkswagen has stated for years that it aims to sell more electric vehicles than Tesla in the future. According to Bloomberg Intelligence, this might occur in the year 2024. As per the analysis, these two car makers are going to compete for the top spot in global electric car sales within a period of next 5 years, leaving the remainder of the sector well behind.

The Volkswagen Group can sell a wide range of electric models in markets around the world, including the Audi e-Tron model, the Volkswagen ID.3 compact car as well as ID.4 SUV, and the high-performance Porsche Taycan, thanks to its ten different brands, which range in price and prestige from Volkswagen to Bentley. Over the next few years, more is expected from all of the Volkswagen Group brands. Tesla is particularly sensitive to Volkswagen’s variety of goods and pricing due to its narrow model line-up.

China and Europe, in particular, will be crucial in determining leadership in electric cars in the next years. Electric vehicles are significantly favored by regulations in both of these places. As per the estimate, electric vehicles will account for 25% of total vehicle sales in China by 2025 and 20% in Europe. In terms of electric car sales in Germany, Volkswagen, which is located in Germany and has multiple plants around Europe, already outsells Tesla. Volkswagen trails Tesla in EV sales in China, accounting for only 3.5% of the EV market last year. In 2021, Tesla tied BYD’s 13 percent EV sales in China and trailed Wuling, a Chinese carmaker which does sell 16% of all EVs. Smaller, largely Chinese automakers account for the remaining 55 percent of EV sales in China. Electric vehicles presently account for only 11% of all automobile sales in China, but because laws impose a significant economic burden on automakers who do not offer Electric Vehicles while rewarding those who do, that figure is likely to rapidly increase.

As per the report, Tesla’s incredibly limited product lineup in China — the Model 3 sedan and the Model Y SUV — puts it vulnerable to more appealing goods from Chinese makers as well as Volkswagen. Furthermore, at its Shanghai factory, Tesla has focused on delivering for export rather than the local market.

Bloomberg Intelligence researchers previously predicted that Volkswagen would overtake Tesla globally in 2023. The deadline has been pushed back due to Tesla’s intentions to develop new facilities in Germany and Texas. The extra year is conditional on Tesla debuting the Cybertruck, something Bloomberg Intelligence analysts admit is “questionable.” The Cybertruck electric pickup’s launch date has been put back multiple times by Tesla.

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