Volkswagen Group (OTC; VWAGY) CEO Herbert Diess has reportedly praised rival Tesla Inc (NASDAQ: TSLA) yet again, saying the Elon Musk-led company's speed of expansion took him by surprise.
What Happened: The 63-year-old chief executive of the German legacy automaker admitted Volkswagen may struggle to overtake the electric car leader, The Guardian reported on Monday, citing an online Financial Times conference.
“We didn’t expect our main U.S. competitor to be so fast,” Diess reportedly said.
“It will be tight but we won’t give up on it. I would still see a chance that by 2025 we are first. At least second.”
The world’s second-largest automaker Volkswagen has set aside billions of dollars, just like other legacy players General Motors Co (NYSE: GM) and Ford Motor Co (NYSE; F) to switch to electric vehicles and play catch up with Musk-led Tesla.
Tesla last year sold nearly a million electric vehicles and aims to ramp up those deliveries to nearly 1.5 million units this year. Tesla’s recently opened factories, Giga Berlin and Giga Texas, are expected to lift the company's capacity by one million units when fully ramped up.
See Also: Auto Bromance: Elon Musk Says Volkswagen 'Lucky' To Have CEO Diess, Credits Him For EV Push
Why It Matters: Though a rare trait in the automotive sector, the bonhomie between Musk and Diess is not new. Musk had reportedly offered Diess the CEO role at Tesla in 2015.
Diess in October got Musk to address Volkswagen executives and praised Tesla’s ability to quickly address the global semiconductor shortage.
Volkswagen and other European automakers are under added pressure now that Tesla has started commercial production at its Giga Berlin factory.
Price Action: Volkswagen closed 5.2% lower at $20 on Monday.
Photo via Alexander Migl on Wikipedia
