Volkswagen May Overtake Tesla In EV Sales In 2024

For years, Volkswagen has stated that it expects to sell more electric cars than Tesla. According to new research from Bloomberg Intelligence, which Peter Valdes-Dapena authored for CNN Business, that might happen in 2024.

Photo Insert: The Volkswagen ID. family

According to the estimate, these two automakers will compete for the lead in global electric vehicle (EV) sales over the next five years, leaving the rest of the industry well behind.

Volkswagen Group can offer electric cars like the Audi e-Tron, Volkswagen ID.3 compact car and ID.4 SUV, and the high-performance Porsche Taycan in markets throughout the world because it controls ten different brands ranging in price and status from Volkswagen to Bentley. More models from the group are expected in the coming years.

Tesla's limited line-up of models leaves it particularly vulnerable to Volkswagen's breadth in offerings and pricing.

Over the next five years, two markets, China and Europe, will be crucial in determining EV leadership. By 2025, electric vehicles are predicted to account for 25% of all car sales in China and 20% in Europe. Volkswagen, which is based in Germany and has manufacturing all over Europe, already outsells Tesla in Europe.

Volkswagen is well behind Tesla in terms of electric vehicle sales in China, with only 3.5 percent of the market last year. In 2021, Tesla matched for 13 percent of EV sales in China with BYD and behind Wuling, another Chinese automaker that sells 16 percent of all EVs.

A handful of smaller, largely Chinese, automakers account for the remaining 55% of EV sales in China. Although electric vehicles account for only 11% of all car sales in China, laws impose significant costs on automakers who do not sell them.

According to the report, Tesla's particularly small line-up of only two locally made models in China — the Model 3 sedan and the Model Y SUV — makes it vulnerable to more attractive products from local manufacturers as well as Volkswagen.

Tesla has also committed to producing for export from its Shanghai factory. Volkswagen was anticipated to pass Tesla in 2023, according to Bloomberg Intelligence analysts.

Tesla's plans to build new factories in Texas and Germany have pushed out the deadline. The extra year is also contingent on Tesla launching the Cybertruck electric pickup, which Bloomberg Intelligence analysts describe as "questionable." Tesla has repeatedly pushed back the launch date for the Cybertruck electric pickup.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic