Volkswagen shares have risen by more than 37% since the beginning of the year, while Tesla is down by about 2%
Many traditional car manufacturers are trying to produce their own electric car batteries, embracing a strategy that has turned Tesla into a the biggest player in the industry, transmite The Wall Street Journal.
Now, analysts estimate that the German giant Volkswagen could become the largest manufacturer of electric cars in 2022, and battery production will prove vital in the future.
VW has revealed its plans since 2019. Industry experts believe the company has outperformed most of its rivals in terms of battery production capacity, given that the giant initially underestimated the magnitude and complexity of the task.
In fact, VW has struggled to find qualified engineers and managers to accomplish its goal, currently trying to achieve a level of sustainability in terms of production costs, since the technology behind future batteries does not fully proved the value.
The batteries in VW’s current electric cars are sourced from outside sources, but the company said it plans to build its first battery factory in Germany in 2022, accelerating the trend in Europe, the United States and China.
What happened to Europe’s first $ 7 billion Tesla plant
Between 2018 and 2020, the group spent nearly $ 30 billion developing new technology, including electric cars, more than any other traditional carmaker. Recently, the company announced that it will spend over $ 41 billion to create electric vehicles between 2021 and 2025, not counting the costs of battery factories.
Thomas Schmall, head of VW’s component division, says domestic battery production can be summed up in one simple fact: batteries make up about 50% of the value of an electric car.
Tesla delivered 499,550 cars in 2020, close to the target set by CEO Elon Musk earlier this year. By comparison, the Volkswagen Group sold over 9 million vehicles in the same period.
However, Tesla, a company founded in 2003, has a market value of nearly $ 700 billion, five times more than Volkswagen.
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