CEO of Volkswagen believes that Europe’s largest car manufacturer can overcome Tesla become the world’s largest seller of electric vehicles by 2025.
Speaking to CNBC’s “Squawk Box Europe” at the World Economic Forum in Davos, Switzerland, on Tuesday, Herbert Diess said easing supply chain problems will likely help create some momentum. for the German auto giant in the coming months.
“The market is always looking to the future,” Diess said when asked why investors value Tesla so highly compared to other traditional automakers, such as Volkswagen.
“Tesla is currently leading the way when it comes to electric vehicles, it’s also probably the company that makes the most digital cars, and they have a number of advantages,” he continued. “We’re still aiming to keep up and possibly surpass it by 2025 when it comes to sales.”
Diess said Tesla was able to demonstrate good results and high profits with a reliable business model. However, he reaffirmed his belief that Volkswagen could soon close the gap in electric vehicle sales.
“I also think for Tesla, it’s probably going to be a little bit harder to go big right now. They’re opening new factories and we’re trying to keep up the pace. We think in the second half. year, we’re going to create some momentum,” said Diess.
Volkswagen’s Frankfurt-listed shares were trading about 0.9% lower on Tuesday morning, matching the loss in the auto sector on the pan-European Stoxx 600.
Supply chain crisis to ease
More than two years after the coronavirus pandemic, the auto industry continues to grapple with the challenge of procuring critical parts and building enough vehicles to meet demand.
A critical supply shortfall, especially for battery production, is expected to be an ongoing constraint on the growth of electric vehicle sales in the coming years.
However, Diess said there are some positive signs ahead. He expects the semiconductor supply market to decline slightly from the middle of the year.
“I can say that we’ll see the situation ease by the middle of the year and the second half, we should be in better shape – if the situation doesn’t get worse, which I don’t think so. “, Diess said.
When asked if this means he predicts the semiconductor crisis could end in the second half of the year, Diess replied: “I’m not saying it’s over but we see the situation improving. much improved. I think supply chains are getting back in order.”
