According to a report by Bloomberg Intelligence (BI), Volkswagen Group is projected to overtake Tesla in terms of electric vehicle (EV) sales by 2024. While Tesla has only been selling EVs since its inception, the Volkswagen Group has been aggressively pushing out new fully electric models through its subsidiary brands to gain ground on the American EV maker.
Last year, Volkswagen Group announced it delivered around 263,000 EVs, which is 97% more than the 134,000 units it managed in 2020 – the company sold just 45,000 EVs in 2019. This upward trend doesn’t appear to be slowing down this year, as it was announced back in April that Volkswagen Group delivered 99,100 EVs during the first quarter ending March 31, 2022.
Meanwhile, Tesla said it delivered 310,048 vehicles in Q1 2022, while 936,172 vehicles were sold for the whole of 2021. The EV maker has already begun operations at its new Gigafactories in Berlin (Germany) and Austin, Texas (United States), and is looking to ramp up production at those sites.
Other automakers with big EV plans were also mentioned in the report, including BYD, Changan, Stellantis, Mercedes-Benz, Ford, General Motors, Geely and Toyota. However, BI suggests that these legacy companies will be unable to divest their EV-related assets from their internal combustion engine vehicle production since the latter are what’s helping fund their transition to EVs.
Volkswagen Group is an exception due to the impending initial public offering (IPO) of its Porsche subsidiary worth 85 billion euros (RM398 billion), which is expected to happen in the fourth quarter of this year, BI wrote in its report. The funds generated from the IPO will allow it to push for even more electric models to chase after and overtake Tesla.
Even so, BI predicts EVs to make up 30% of cars sold in 2023, with the figure shooting up to more than 45% in 2025. This could help push Porsche’s valuation even higher for more cash flow to accelerate Volkswagen Group’s EV transition.
One key hurdle that all automakers will face in their EV push is batteries and ensuring a stable supply chain, which has resulted in several partnerships being established with battery suppliers as well as for research and development into new battery technologies – Volkswagen’s heavy involvement regarding this is another reason BI believes it has what it takes to dethrone Tesla as the EV sales king. Of course, the report is pushing forth predictions and only time will tell if it becomes a reality.