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Tesla against VW – the fight between David and Goliath

Who we are the market leader in electric car? Newcomer Tesla shines with battery technology, Volkswagen with huge capacities and production experience as the largest car maker in the world. The decision is in China.

It is an unequal race between a Tesla and Volkswagen for dominance in electric cars. During the pioneer from Silicon Valley struggles to be a production target of 500,000 vehicles, the Auto giant from Wolfsburg just a few muscles playing, to skip this threshold. On the on the world’s largest market for electric cars is in China, where Tesla is currently picking up its first factory outside the USA and is looking for work forces.

Volkswagen equips in contrast, just two of his numerous works for the construction of emission-free vehicles and can be based on an established workforce. 2020 to begin the production of E-cars in the two Chinese factories. According to the plans, which Reuters has seen, should be by the end of 2022 for an annual capacity of 600,000 E-cars achieved. With the ramp-up of the E-production then in the world, nearly one Million VW should be able to roll-Stromer of the tapes. Thus, Volkswagen would overtake the competitors from California significantly.

VW boss appreciates Tesla

Nevertheless, the Americans with Volkswagen chief Herbert Diess are in high demand: “I appreciate Tesla as a serious competitor,” he said last week on the sidelines of the presentation of the new Golf 8. Companies according to connoisseurs, the software admired This above all the competence of the US-rivals, the batteries depending on the model, a range of up to 600 kilometers. Tesla is not a niche player, said Diess. With the Model 3 of the U.S. electric car maker was able to take advantage of economies of scale. The question is now, whether it is the founder of the company Elon Musk is successful, the production network is fast enough to expand. “The capital intensity is increasing,” said Diess with regard to the cost of batteries.

VW-in-chief, Herbert Diess, the electric car ID3, presented at the IAA in 2019

Longer is speculated in the industry, investors might lose patience with Tesla, and the money faucet to turn, because the cost of running. Volkswagen was said to have interest in a stake in Tesla, which have denied the wolf Burger, however.

Decides size sheer?

The world’s largest car maker, thanks to the sale of almost eleven million Burners in the year about the middle to the high level of investment in the electric mobility secure. Because of its sheer size with 660,000 employees around the globe and experience in building production networks and processes, Volkswagen is expected to handle the tag.

By 2022, VW wants to convert on four continents, eight factories for the production of Streamers on the Basis of the electric kit, MEB – four in Germany (Zwickau, Emden, Hannover and Dresden), two in China (Anting, Foshan), and one each in the Czech Republic (Mlada Boleslav) and the USA (Chattanooga).

Investors doubt Tesla

Tesla, however, has problems to achieve its goals. In the summer of last year, was built in a huge tent outside of the plant in Fremont, an additional Assembly line for the Model 3, in order to increase production faster. The reason was that the tapes, not everything went around. Musk stayed temporarily in the factory, in order to get the “production hell” in the handle.

The problems of Tesla have fed investors ‘ doubts as to whether Start-ups are at all able to exist in the capital-intensive auto manufacturing. The setbacks, the electric car pioneer had to on the way out of the red plug and the revenue loss to the emerging Chinese rivals Nio made investors more cautious can be.

Tesla Boss Elon Musk at the laying of the Foundation stone of its Gigafactory in Shanghai

“High barriers to entry in the automotive industry”

“The truth is that the barriers to entry in the automotive industry are still high,” says Max Warburton, Analyst at Bernstein Research. “Building cars is difficult.” The transition to electric vehicles, although expensive, but mastered probably the most likely of the traditional manufacturers.

While Tesla has made for this year, the construction of up to 400,000 E-cars, go on the plans in Wolfsburg. VW wants to produce, by 2025, three million electric cars per year and the largest manufacturer of Streamers upgrade. In the next few years, 70 new E-models are to come on the market. By 2030, the E is to increase the proportion of the fleet to at least 40 percent. At the beginning of November in Zwickau with the ID 3, the first electric car roll off the Assembly line. In the final stage of expansion, in 2021, the Zwickau team should be able to produce up to 330,000 purely electric cars per year.

VW more aggressive than the competition

Volkswagen is the pivot more aggressive than competitors such as BMW, Renault and General Motors, have already brought earlier E-cars at the Start. Instead of the production step of the way, and several platforms to maintain, Volkswagen is counting on a unified architecture for electric vehicles: the Modular electric modular MDBs. Thus, the Wolfsburg are in a better position to take advantage of economies of scale.

This also includes the licensing of the kit by a competitor carries, such as Ford, making the costs continue to fall. The goal is to bring an electric car at a price of 20,000 euros on the market. This battery-driven vehicles affordable to the broad masses and of the E-mobility led to a breakthrough.


 

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