The chief government of Volkswagen believes Europe’s largest carmaker can overtake Tesla to change into the world’s largest vendor of electrical automobiles by 2025.
Talking to CNBC’s “Squawk Field Europe” on the World Financial Discussion board in Davos, Switzerland, on Tuesday, Herbert Diess mentioned assuaging provide chain points would possible assist create some momentum for the German auto large over the approaching months.
“Markets are all the time in regards to the future,” Diess mentioned when requested why traders valued Tesla at such a premium to different conventional carmakers, akin to Volkswagen.
“Tesla at present is within the lead with regards to EVs, in all probability additionally it’s the most digital automotive firm already they usually have some benefits,” he continued. “We’re nonetheless aiming at maintaining and doubtless overtaking by 2025 with regards to gross sales.”
Diess mentioned Tesla has been in a position to show good outcomes and excessive returns with a reputable enterprise mannequin. Nonetheless, he reaffirmed his perception that Volkswagen might quickly shut the hole with regards to EV gross sales.
“I feel for Tesla, additionally, ramping up now will in all probability be a bit more difficult. They’re opening up new vegetation and we try to maintain up velocity. We expect within the second half of the yr, we’re going to create some momentum,” Diess mentioned.
Volkswagen’s Frankfurt-listed shares traded round 0.9% decrease on Tuesday morning, roughly according to losses within the autos sector on the pan-European Stoxx 600.
Provide chain disaster to alleviate
Greater than two years into the coronavirus pandemic, the auto trade continues to grapple with the problem of acquiring essential elements and constructing sufficient automobiles to satisfy demand.
Shortages of vital provides, notably with regards to battery manufacturing, are anticipated to be an ongoing constraint for the expansion of electrical car gross sales within the years forward.
Nonetheless, Diess mentioned there are some optimistic indicators on the horizon. He expects to see some aid from the semiconductor provide market from the center of the yr.
“I’d say that we might see an alleviation of this example in direction of mid-year and second half we needs to be in higher form — if the state of affairs shouldn’t be getting any worse, which I do not suppose so,” Diess mentioned.
When requested whether or not this implies he expects the semiconductor disaster might finish within the second half of the yr, Diess replied: “I would not say finish however we see a much-improved state of affairs. I feel provide chains are getting so as once more.”
