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Associate Partners:

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Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Volkswagen CEO says Tesla could become the most valuable company in the world soon

“Elon Musk delivers results that many thought was impossible. They show that you can be profitable with electric cars."

July 29, 2020 / 04:23 PM IST

Volkswagen is the largest automaker in the world, with a reputation of providing leading-edge tech that has often left its competitors in the dust. However, over the past few years, Tesla’s electric vehicle technology seems to be leaving the rest of the industry behind.

Last week, Tesla announced its Q2 2020 financial results, exceeding expectations with sales up from the previous quarter, recording a modest profit. While Wall Street remained unimpressed, praise for the California-based EV manufacturer and its CEO, Elon Musk rained down from an unsuspecting place.

In a LinkedIn post, Dr Ferdinand Dudenhoeffer, Director of the Center for Automotive Research in Duisburg wrote in German, “While almost the entire (car business) sinks into losses in Q2, Tesla makes $327 million in profits in the operating business.”

In response to the post, Volkswagen CEO Herbert Diess, said, “Elon Musk delivers results that many thought was impossible. They show that you can be profitable with electric cars.” He added, “Tesla will drive through the Corona crisis without a loss quarter. It confirms to me that in five to ten years, the most valuable company in the world will be a mobility company – that can be called Tesla, Apple or Volkswagen.”

Additionally, Audi CEO Markus Duesmann conceded that Tesla has a considerable technological lead in several areas. Duesmann told Reuters, “Currently, Tesla has larger batteries because their cars are built around the batteries. Tesla is two years ahead in terms of computing and software architecture, and in autonomous driving as well.”

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The head of Volkswagen has also implemented an internal plan called “Tesla catch-up plan”, which seems to be aimed at closing the software gap between the Volkswagen and Tesla.
Moneycontrol News
first published: Jul 29, 2020 04:23 pm

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