The president of Volkswagen thinks Europe’s most significant carmaker can surpass Tesla to end up being the world’s biggest seller of electrical cars by 2025.
Speaking to CNBC’s “Squawk Box Europe” at the World Economic Forum in Davos, Switzerland, on Tuesday, Herbert Diess stated easing supply chain problems would likely assist produce some momentum for the German vehicle giant over the coming months.
“Markets are always about the future,” Diess stated when asked why financiers valued Tesla at such a premium to other standard carmakers, such as Volkswagen.
“Tesla currently is in the lead when it comes to EVs, probably also it is the most digital car company already and they have some advantages,” he continued. “We are still aiming at keeping up and probably overtaking by 2025 when it comes to sales.”
Diess stated Tesla has actually had the ability to show excellent outcomes and high returns with a reputable organization design. However, he declared his belief that Volkswagen might quickly close the space when it concerns EV sales.
“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,” Diess stated.
Volkswagen’s Frankfurt- noted shares traded around 0.9% lower on Tuesday early morning, approximately in line with losses in the automobiles sector on the pan-European Stoxx 600.
Supply chain crisis to reduce
More than 2 years into the coronavirus pandemic, the vehicle market continues to face the difficulty of getting important parts and developing sufficient cars to fulfill need.
Shortages of crucial materials, especially when it concerns battery production, are anticipated to be a continuous restriction for the development of electrical car sales in the years ahead.
Nonetheless, Diess stated there are some favorable indications on the horizon. He anticipates to see some remedy for the semiconductor supply market from the middle 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 stated.
When asked whether this implies he anticipates the semiconductor crisis might end in the 2nd half of the year, Diess responded: “I wouldn’t say end but we see a much-improved situation. I think supply chains are getting in order again.”
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