Will Volkswagen Outdo Tesla in the Electric Vehicle Market?
In the year 2018, Tesla sold over 350,000 electric vehicles (EV’s). They have a 78% share of the US EV market.
The company has been valued at over $100 billion, surpassing Volkswagen.
Volkswagen, however, plans to manufacture 28 million EV’s within the next 8 years.
That is an average 3 ½ million cars per year.
In fact, they are investing $37 billion into its EV program.
Before you say, “price drop”, they are only expected to produce 1 million each year over the next 3 years. After 2023, they plan on increasing production to 3 million per year.
Suicide?
In the year 2019, Volkswagen sold only 140,000 EV’s. However, they have converted their Zwickau, Germany plant to produce EV’s exclusively. That one plant will be expected to pump out over 300,000 cars per year. Their plants in Tennessee and China will follow.
Tesla may have sold over 350,000 EV’s in 2018, but Volkswagen sold close to 11 million vehicles, overall. Remember, Volkswagen Group also owns, among other profitable lines, Audi, Bentley, Bugatti, Ducati, Lamborghini and Porsche.
Tesla vs Lamborghini:
In order for Tesla to handle the competition of this conglomerate, they will have to create a vehicle at a lower price point than they currently have. However, Tesla has been able to dominate the US EV market with with no paid advertising – they relied entirely on social media.
Volkswagen is planning on a $2 billion ad campaign, and plans on matching funds for its local dealerships’ commercials and ad campaigns.
Should we even get excited?
In the year 2019, EV’s accounted for only 2.5% of sales in the global car market.
Will the next few years suddenly turn bright green, as the number of EV models increase?
If car manufacturers simply stop making gas engine vehicles, will we have a choice?
Or, is this a race that everyone can win?
Tesla, in Italian:
One of the new Volkswagen models …
Maybe I’ll just walk.
