While Volkswagen (VW) is reaching Tesla in the global electric vehicle (EV) market, the German automaker remains Elon Musk’s company in some critical areas, adding software, some analysts say, although VW has a merit in terms of scale.
To meet EU climate targets and defeat Tesla, VW plans to launch around 70 purely car models by 2030.
VW also plans to reduce the battery charge of electric vehicles, and battery power compared to Tesla, by creating its own mobile battery production plants across Europe.
UBS analysts recently praised VW’s first EV model, id. 3, as “the most credible EV effort of any existing automaker to date. “
UBS expects VW to seriously challenge Tesla’s leadership in sales volumes through 2022 “through a plettive of [new vehicle] launches. “
VW is already the leading distributor of electric cars in Europe: Dan Levy, Credit Suisse analyst wrote in a recent study report that in Europe, VW has risen to the most sensitive place in the all-electric car market in 2020, with a market share of 24%, up from 13% last year, while Tesla’s comparative share in Europe increased from 29% in 2019 to 13% last year.
David Trainer, CEO of New Constructs, an investment firm in Nashville, says VW has at least great merit on Tesla’s scale.
Last year, Tesla sold just under 500,000 electric cars, which is 16% consistent with the global market share (up from 17% in 2019), while VW sold around 422,000, a 13% consistent with the share. . In the fourth quarter of 2020, VW sold the most electric cars (191,000) compared to Tesla’s 183,000. However, in terms of all-electric car sales, Tesla had a 23% global market place consistent with that percentage in 2020, more than double VW’s 11% position (Tesla only makes all-electric cars, while that VW also makes plug-in hybrids). On Monday, VW unveiled plans to operate six mobile battery factories in Europe through the end of the decade; and 18,000 public battery charging stations on the continent by 2025 (a construction five times higher than its existing network). VW will also install 3,500 charging stations in the United States and 17,000 in China. VW expects fully electric cars to account for more than 70% of its total car sales in Europe (double its previous target of 35%) through 2030; and more than 50% of its sales in China and the United States until then. 2030 is a vital year for “green” cars because it is the date when the European Commission, the executive arm of the European Union, needs to have at least 30 million zero-emission cars on European roads as a component of its crusade. to achieve carbon neutrality in the EU until 2050. “We assume that the adjustments in line with the percentage [of the electric vehicle market] in Europe were a service from the emergence of [the carbon dioxide regulations carbon from cars] and subsidies as Tesla is also short of stock given the Fremont plant [in California. ] halt, “wrote Credit Suisse’s Levy. Trainer of New Constructs notes that since VW already manufactures more cars, adding internal combustion engine cars, in a month than Tesla in a year, can easily surpass Tesla as the largest electric car maker in the world. “Tesla it has yet to turn out that it can produce cars on more or less the scale of the headlines, which have turned out to be able to replace its internal combustion engine production capacity to make electric cars, “he said. “In addition, the incumbents have great merit in the position because they have already built and paid for their production plants, while Tesla has not yet built their plants. ” However, UBS cautioned that VW is still lagging behind Tesla in terms of software and battery capacity, noting that VW currently has a demerit charge of $ 1,300 consistent with cars on batteries compared to Tesla, and that “it is This hole is unlikely to be filled due to Tesla’s vertical integration and the force of innovation. Software will be the “battleground” for EV supremacy in the future, according to UBS analysts. Meanwhile , VW plans to invest $ 19 billion over the next five years to upgrade its scanning and software capabilities.
“No, we don’t have [a deal with Tesla], we’re following our own path. We need to get closer and then move forward,” said Herbert Diess, CEO of VW.
Despite some early successes in the electric vehicle market and its prestige as one of the world’s largest automakers, VW remains only one-fifth of Tesla’s market capitalization: $134 billion versus $678 billion.
VW’s reputation was severely broken through a diesel emissions scandal that erupted in 2015 when the Environmental Protection Agency discovered that the company had manipulated its diesel cars to cheat on U. S. emissions testing. Martin Winterkorn, VW’s executive leader at the time of scandal emissions, will soon be attempted over trap fraud rates. He has denied any crime.
Recent studies through Wood Mackenzie, a consulting organization founded in Edinburgh, Scotland, predict that annual sales of electric cars will be successful at 62 million by 2050, when some 700 million electric cars will be on the road. , China (81%) North America (78%) will then be governed by electric cars.
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