Here's How Volkswagen Can Beat Tesla (It's Not With Software Or Batteries)

• In order to meet EU climate targets and beat Tesla, VW plans to launch about 70 purely electric car models by 2030.

• VW also plans to cut the cost of EV batteries — and improve battery efficiency relative to Tesla — by setting up its own battery cell production plants across Europe.

• Analysts at UBS recently praised VW’s debut EV model, the ID.3, as "the most credible EV effort by any legacy auto company so far."

• UBS anticipates that VW can seriously challenge Tesla's leadership in sales volumes by 2022 “driven by a plethora of [new EV] launches.”

• VW is already the top EV seller in Europe — Dan Levy, an analyst at Credit Suisse, wrote in a recent research report that in Europe VW climbed to the leading position in the all-electric car market in 2020, with a 24% market share, up from 13% in the prior year, while Tesla’s comparative share in Europe plunged from 29% in 2019 to 13% last year.

• David Trainer, CEO of New Constructs, an investment research firm in Nashville, says VW has at least one big advantage over Tesla – scale.

KEY BACKGROUND

Last year, Tesla sold just under 500,000 EVs, taking a 16% share of the global market (down from 17% in 2019), while VW sold about 422,000, denoting a 13% share. In the fourth quarter of 2020, VW actually sold the most EVs (191,000) compared with 183,000 for Tesla. However, in terms of all-electric car sales, Tesla had a 23% global market share in 2020, more than double VW’s 11% position (Tesla only manufactures all-electric vehicles, while VW also makes plug-in hybrids).

Read More at https://www.forbes.com/sites/palashghosh/2021/03/16/heres-how-volkswagen-can-beat-tesla-its-not-with-software-or-batteries/