Volkswagen Knows When It Will Overtake Tesla in EV Sales

Volkswagen CEO Herbert Diess plans to take advantage of resolved supply-chain issues to overtake Tesla in EV sales by 2025.
Written by Allison Stone
Reviewed by Kathleen Flear
Jun 16, 2022
For years now,
Tesla
has been the undisputed leader in U.S. electric vehicle sales, a milestone that many doubters of the automotive newcomer didn’t see coming. The gap between Tesla sales and other automakers could be closing sooner than later, however. While Tesla had the benefit of being early to the party and dominating a niche market, as EVs become more mainstream, consumers are bound to look for other options. 
Volkswagen
CEO Herbert Diess thinks that the gap could close as soon as 2025, as the European automaker announces plans to overtake Tesla as the world’s largest seller of electric vehicles. Diess cites an alleviation of the ongoing supply-chain crisis as the key element to Volkswagen’s growth in the market. 

Tackling the supply chain crisis

Automakers across the board have
faced challenges
when it comes to meeting demand, and electric vehicle makers, in particular, have been scrambling to source critical supplies for battery production. 
Diess, however, predicts that automakers could see some relief towards the end of the year. 
“I would say that we would see an alleviation of this situation towards mid-year and second half we should be in better shape—if the situation is not getting any worse, which I don’t think so,” Diess said. I think supply chains are getting in order again.”

A diversified EV marketplace

While it's unclear just yet if Volkswagen will be able to overtake Tesla, a vision of a more diversified marketplace seems very likely. While one of Tesla’s strengths in EV production has been meticulous vertical integration, Diess doubt’s the company’s ability to scale at the same pace as demand. 
“I think for Tesla, also, ramping up now will probably be a bit more challenging. They are opening up new plants and we are trying to keep up speed. We think in the second half of the year, we are going to create some momentum,” said Diess. 
Much of Tesla’s expeditious success has been due to getting in first on the ground floor of a niche market, and that success could easily wane should
other automakers
begin producing EVs to
rival Tesla
At the same time, even with the vast resources many legacy automakers like Volkswagen have, converting to electric can be a costly and time-consuming process that comes with its own set of risks. 

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