EV automobiles are finally starting to gain momentum and becoming mainstream. When you think of electric cars, you think Tesla, right? Since this industry has started growing significantly, everyone now wants a piece of it. The competition has finally started to heat up, but will Tesla still remain King?
The new infrastructure bill includes a plan to install 500k charging stations throughout the US. This shows clear proof of the rising interests in a clean energy approach, pushing for more opportunities for manufacturers to move over to electric vehicles.
Tesla Remains On Top
Tesla holds the majority of the global market in electric vehicle sales. They were one of the first to start this new venture and have the technology, data and design to dominate.
They have the data of years of having their cars on the road to finely tune their design and processes. Their workflow is streamlined to perfection, down the extraction method of obtaining lithium for their batteries.
The price of manufacturing is continuously going down, soon to become more affordable for everyone.
Their batteries, autonomous driving and power storage are 3 pivotal areas for EVs and Tesla remains on top for them all. Their cars can go the furthest on a single charge and their productions methods are highly efficient.
But can competitors dethrone the King?
Volkswagen Enters the EV Game
Enter Volkswagen, a top player in the car industry, aiming to push themselves into the EV market and dominate. They have their eyes on Tesla and are making moves to catch up.
VW is already the top EV seller in Europe, a huge achievement, already beating out Tesla. Globally, Tesla still remains on top, selling just under 500k EVs in 2020. This accounted for 16% share of the global market. Comparatively, Volkswagen sold 422k, reaching 13% share of the market.
They are quickly catching up in cars sold, but just in the 4th quarter, Volkswagen sold the most cars, beating out Tesla by over 10k.
Their plan is to launch 70 pure EV by 2030 to compete with Tesla, working on cutting costs of their batteries and setting up their own battery cell production facilities across Europe.
Tesla may be wining right now, but VW holds the advantage when it comes to scale. They have the resources to grow their EV department much faster and bigger than Tesla could imagine.
Can Volkswagen beat Tesla?
But can Volkswagen beat Tesla? That’s the question we all want to know. VW is catching up in sales and expanding their business to focus more on EV. But Tesla is the face of the EV industry.
When your friend says he (or she) is going to buy an electric car, you ask when are they going to buy their Tesla? You don’t ask the type of car.
Tesla’s technology and data are the best around, finely tuned to perfection. No one can compete with their process. Their batteries still stand on top, their AI is unbelievable and they drive themselves to the top.
There was a study done recently comparing the charging experiences for Tesla, VW and Ford. We can all charge our EV in our own home, but when you’re out or going on a road trip you want a decent experience. Tesla won hands down. Ford wasn’t too bad, making the experience similar, but not as good. VW was the worst. There were too many steps and the process wasn’t efficient at all.
This could potentially show the steps VW still needs to do to streamline their process and simplify their cars. EVs are the future and need to be more efficient and user-friendly than gas-powered machines.
VW may overtake sales of Tesla in the future. It’s a possibility that I can see happening. However, my opinion is Tesla will remain the face of EVs. They are known for having limited productions, but their technology and battery advancements will keep them on top.
As a comparison, when you think of smart phones you likely think of the iPhone. Sure there’s countless other phones, but the iPhone is the face of the smart phone. Yet Samsung phones had remained the top seller for years. The same could likely be for Tesla. They may not sell as many cars, but their car may remain the best EV in the market.
On a side note, 2020 was the first year Apple sold more than Samsung, putting the iPhone on top. Maybe that’s Tesla’s future if VW ever catches up.
Should You Invest In Tesla or Volkswagen?
Volkswagen is bound to see positive growth from this movement to EVs. The US is pushing the green initiative hard and that’s bound push VW’s stock up long term. As electric vehicles become more mainstream, VW will likely see their stock continue to surge if they can remain close to the top.
Tesla is an interesting stock. I previously wrote a blog post about if Tesla was overvalued. They’re not technically a car company, but they’re also not a tech company. It’s been hard to categorize where their stock belongs, but their share price never made sense to me in comparison to their sales.
There is so much hype around Elon and Tesla that is continuously pushing their share price to new highs. But they are a shiny stock to own and is backed by some big people, like Cathie Wood. She predicted the stock could hit upwards of $3k by the end of 2025.
Their technological advancements and unique production methods seem to support their growth and will likely continue to push them higher.
