📺 Stream EntrepreneurTV for Free 📺

Analysts Say Volkswagen Could Overtake Tesla Very Soon The German automaker may surpass Tesla as the best selling electric vehicle maker as soon as this year.

By Michelle Jones Edited by Sean Strain

entrepreneur daily

This story originally appeared on ValueWalk

Volkswagen AG (OTCMKTS:VWAGY) could overtake Tesla Inc (NASDAQ:TSLA) as the best-selling electric vehicle maker sooner than most were expecting. One analyst notes that Volkswagen could overtake Tesla by hundreds of thousands of vehicles this year. Meanwhile, another predicts that the German automaker could beat the Silicon Valley superstar next year.

Analyst predicts Volkswagen will beat Tesla this year

According to The Motley Fool, analyst Gordon Johnson of GLJ Research said Volkswagen would overtake Tesla in EV unit sales this year. The German automaker said on Tuesday that it plans to deliver 1 million electric vehicles this year. Johnson noted that Tesla guided for a 50% increase in deliveries this year, which would put it at about 750,000 units.

Volkswagen also said on Tuesday that it wants to be the top EV maker in the world by no later than 2025. It remains unclear whether the German automaker will be able to beat Tesla. Volkswagen's EV line-up is more targeted at the masses, while Tesla still targets the luxury market, although the Model 3 and Model Y are supposed to be mass-market vehicles.

Another view of Volkswagen versus Tesla

On the other hand, UBS analysts said Volkswagen could match Tesla in EV unit sales as early as next year. They predict that the company will deliver 300,000 more EVs than Tesla in 2025. CNN notes that Volkswagen is investing $42 billion into electric vehicles in its quest to counter Tesla's dominance.

Volkswagen CEO Herbert Diess told CNN earlier this week that Tesla is "very strong in software" in addition to making electric vehicles. He added that the automaker runs "the car as a device" and that they are "making good progress on the autonomous thing." However, he emphasized that they will challenge Tesla.

Volkswagen intends to sell over 2 million EVs by 2025, build a network of massive battery factories, hire 6,500 IT experts in the next five years, launch an operating system and become the second-largest software firm in Europe after SAP. The move into software further cements the fact that Volkswagen has Tesla in its crosshairs. UBS analysts told the media last week that investors haven't appreciated the speed at which the German automaker is gaining ground on Tesla.

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders' families. CEO Elon Musk has yet to respond to Volkswagen's challenge to his company's dominance in the EV market. Tesla shares declined by as much as 3% in early trading today before reversing course. The stock was in the red on Tuesday.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Green Entrepreneur®

How to Make Your Ecommerce Business Truly Sustainable (and Why It's Important)

Effective data collection solutions help overcome the challenges of shifting to more sustainable ecommerce practices.

Business Solutions

Bring Programming In-House with Visual Studio and Coding Courses for $56

This bundle features Microsoft Visual Studio Pro 2022 and a wealth of online coding courses.

Buying / Investing in Business

How to Recognize Money-Making Trends in The Market — And Boost Your Profits

These patterns and seasonal changes in the markets, especially over a set number of years, can provide some investors with an interesting map that may help their portfolios perform well all year long or even be a key to long-term riches.

Business News

Waymo Is the Second Automated Driving Company in 2 Days to Face an Investigation

This week, Waymo announced it makes 50,000 paid robotaxi rides weekly.

Starting a Business

The Scrappy Origin Story of Toast, the Game-Changing Restaurant Tech Company

Toast CEO and co-founder Aman Narang discusses the company's humble beginnings, their culture of scrappiness, and how they've transformed the way that restaurants do business.

Business News

This Highly-Anticipated Disney World Ride Finally Has a Reopening Date: 'Like the Animation Came to Life'

Tiana's Bayou Adventure is replacing Splash Mountain at Disney World and Disneyland.