While the auto market has been falling apart, Volkswagen has been crushing it in the EV market.
The automaker's CEO said on a podcast on Monday morning that many of its EVs are already “sold out far into the second half of the year,” according to Bloomberg.
The company's market share for EVs more than doubled to almost 4% and could rise as high as 5% or 6% by the end of 2020 with help from incentives and tax breaks, CEO Herbert Diess said. The company has a longer-term target of EVs accounting for about 40% of deliveries by 2030.
And the target for VW is clear: the company is "very confident" that it "won’t lose sight of Tesla," Deiss said.
He continued, saying that the company's "ability to boost technology skills and software operations quickly is more important to compete than leveraging industrial scale."
Diess expects "very strong" competition from Chinese firms in the future and reiterated his call for economic stimulus in Germany to help the country steer clear of a prolonged recession.
This targeted move, taking aim at Tesla, shouldn't be a surprise to Zero Hedge readers, as we recently predicted that Volkswagen would become a major player in the EV market, posing a threat to Tesla.
Recall, just days ago, we wrote about the Volkswagen ID3, which, with a price point of $33,000 possibly represents the biggest challenge to Tesla's dominant EV status yet. The vehicle goes on sale in Europe and the UK this summer, despite the coronavirus and offers the same amount of range and storage space as a Tesla Model 3.
The ID3 is going to offer three different battery choices and two power outputs. It has a claimed range of 260 miles.
Volkswagen has been taking pre-orders for the car and more than 35,000 people have placed deposits so far, according to Autocar. Those who placed deposits will be able to buy their cars starting June 17 in Europe. The UK will follow in mid-July due to the time it takes to get approval for right hand drive models.
Volkswagen sales boss Jürgen Stackmann said at the time deliveries are on track and that the ID3 is the company's sole focus right now: “The focus of the company now is on ID 3. We’re almost ready, and we just need a few more weeks to get the software to where we need it to be. The entire team are working on this topic, and we want to deliver a great quality product on time – and that time is this summer.”
Volkswagen is aiming to build 100,000 ID3s this year and prices in the will start from around £27,500 before the government grant for the entry-level 45kWh version.
The storage capabilities of the ID3 make it a formidable competitor to the Model Y. The ID3 also features two digital dashboard displays and, as Business Insider says "...seems to offer a bit more familiarity" than the Tesla Model 3.
It also offers adaptive cruise control and lane assist, similar to Tesla's autopilot. And again, the price point could be the car's best selling point. Its $33,000 (USD) tag compares to about $48,000 for the Model 3 and $52,990 for the Model Y.
A video comparison of the ID3 and the Model 3 can be seen here: