Volkswagen CEO says competition with Tesla will be tight

Though Volkswagen is amping up its electrification game, Volkswagen CEO Herbert Diess feels since the race between the auto major and Tesla to become the top electric vehicle maker is going to be stiff. Diess shared Tesla works at two times the speed compared to the industry pace. Focusing on upgrading the factories along with finding qualified workers for building EVs are a few pointers on the mind of Volkswagen's CEO. Diess also said Tesla does not have the burden of ICE vehicles and started its EV journey with a clean slate.

Diess has also stressed how Volkswagen is scaling up when it comes to electric vehicles. Though, the production capacity of electric vehicles is not only the factor that will determine how close Volkswagen is to Tesla as profit expected from these vehicles is also a determining factor in this race. “We expect the e-mobility business to match the profitability of our combustion engine business earlier than planned. Because we are rolling out our e-mobility toolkits across the board, converting a growing number of production plants and selling our technology to competitors such as Ford," Diess was quoted as in a Reuters report.

With Volkswagen's goal to dethrone Tesla to become the leader in the electric vehicle segment by 2025, the former remains focused on increasing its sales of EVs. In an earlier report, Tesla CEO Elon Musk also mentioned that Volkswagen is the only automaker after Tesla that is making significant progress in the field of electrification. Musk had mentioned that he considers Volkswagen second to Tesla.

Musk and Diess have a friendly rapport with each other and acknowledge each other's achievements in the electric vehicle segment. They also had exchanged test drives of Tesla and Volkswagen EVs. Last year, Diess invited Musk to address 200 executives of the company through a video call.