What Does Volkswagen’s Big EV Push Mean For Tesla?

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While the world is busy fighting the pandemic, the growth of the automobile business is rising throughout the globe. Currently, the leading car manufacturing companies are stepping up with new EV projects for a better environment and helping hands towards conserving nature. We have all known that Tesla is leading in the EV markets and is investing a lot of money in research and development but we have Volkswagen in the game now. You can look for the 2021 Volkswagen Atlas for the new and updated features.

Volkswagen is confident and has drawn a path towards its complete transition into vehicles running on electrical batteries challenging the already successful, Tesla, and that too by the year 2025. This is a huge step towards a completely new architectural development by Volkswagen. The announcement was made on March 15 leading to a stock gain of over 20% for the Volkswagen group while the stocks fell to nearly 10% for Tesla. The valuation rises for the German automobile conglomerate leading to doubts all over the internet for what changes to be expected from the new EVs and how the transformation will be affected globally.

Volkswagen has already excelled in the automobile industry since a long time back unlike Tesla who is new and is still developing. If you are curious, you must take a look at the 2021 Volkswagen Atlas which got updated recently and holds all the modern amenities and precision Volkswagen is known for. Although Volkswagen is not new to the world of EVs, it has owned companies like Audi and Porsche which have EVs in their lineups and they are mind boggling in their stance. Also, the car manufacturer has a few upcoming EVs ready to storm the market named ID.4 and the model was awarded for the best design. Volkswagen has invested in manufacturing batteries for and evolved in rapid charging and self-driving technologies and has been excelling in the market. 

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And as it is in the developing stages, Volkswagen has sold just 3% of the 9.3 million vehicles annually. But now, the tables have turned and Volkswagen is said to be involved in building EVs. The company has potentially planned in expanding its battery manufacturing plants by up to 6, and further improving the charging capabilities to withstand its main competitor, Tesla, and increase its sales and the overall reliability quotient.

The global sales have a rise for the Volkswagen group with more than 9 million sales which are no near to that of Tesla. And with Europe as its main success pocket, the EV projects are a yes from governments all over the continent and almost everywhere around the globe for a big change in the EV market and its sudden demand. Tesla has always impressed us with its technologies in the EV category which are quite costly to consider too. But can hope that Volkswagen will look into the market and offer EVs in almost every price category.  

Now let’s focus on the Tesla side of things. Tesla is quite unbeatable in many terms and technically holds the highest brand value for an EV manufacturing company and the value rises to this very day because of its high-tech nature. The tech mammoth is currently valued at over $600 billion, which is roughly 4 times that of Volkswagen which sounds like a parody if we think of Volkswagen taking over Tesla. But it is seen the stocks are falling from the sides of Tesla and if it is seen that Volkswagen’s offerings are more approachable to the mass and the after-sales service is considerably better than that of Tesla. 

So, with Volkswagen entering the EV world, we have a lot of expectations from the conference where the CEO stated about the transition. Although, challenging Tesla can be a bit of a push but we can rely on the world’s second-largest automobile conglomerate for the promise. Volkswagen will try and set up a lot of charging stations across the US, Europe, and the far east for mobility for its EVs and doubling up the manufacturing of batteries to provide supplies all over the globe. With Tesla’s fall in share by 10%, it can bring light to the German carmaker and boosts its production by the end of 2025. 

 

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Disclaimer: This content does not necessarily represent the views of IWB.

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