$48 Billion worth of Electric Batteries is no joke!

The EV segment is seeing a lot of entrants these days. Every automaker out there, from Ford to Bentley, wants a share of the pie. Arguably, it was Tesla who may have taken the EV market by storm, but the worst is yet to come. Reports suggest that Volkswagen has placed an order for battery cells that matches the entire market value of Tesla! Now, how’s that for competition?

Heart of the matter

2018 Audi Q8 Exterior Spyshots
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olkswagen has planned to secure battery cell supplies of up to 150 GWh annually by 2025 for around $60 billion

Volkswagen has planned to secure battery cell supplies of up to 150 GWh annually by 2025 for around $60 billion, and so far contracts awarded to suppliers have an approximate value of $47.7 billion. Just one month ago, Volkswagen announced deals for $24 billion, so it’s progressing quickly. To make matters worse, the pressure on Tesla started to show when Musk criticized analysts for asking “boring” questions and cutting off queries about capital needs during the company’s earnings call. Things don’t look good for Tesla!

Volkswagen seems to be on track with its humongous targets. By the end of this year, Audi will start production of its first all-electric SUV, followed by the Porsche’s four-door coupe - the Mission E - from next year. Volkswagen will also start rolling out the new I.D. range of battery-powered vehicles from 2020, which will be priced at levels comparable to similar combustion engine vehicles.

Our Take

Volkswagen looking to swallow Tesla's market share Drivetrain
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The brand recently announced an introduction of eighty new plug-in electric models by 2025 and the goal of achieving sales of up to three million all-electric vehicles annually

The EV segment was never taken seriously up until a few years ago. For instance, The Toyota Prius and Honda Insight, launched in 1997 and 1999 respectively, literally sold without any competition until Tesla showed the potential and need for EVs when it was launched the Tesla Roadster in 2008 and the Model S in 2012. It was then that manufacturers started showing interest in the segment, which only strengthened after countries stressed on the environmental benefits.

While one can say that Volkswagen made a slow entry, the brand recently announced an introduction of eighty new plug-in electric models by 2025 and the goal of achieving sales of up to three million all-electric vehicles annually. For VW, it’s not just about taking pole position; it’s also about rebuilding the tarnished reputation from the emission scandal. And, since it’s Volkswagen claiming the targets, we won’t be surprised if they achieve it since it makes more cars in four days than Tesla makes in a year. For now, Tesla seems to be in big trouble! The EV segment just picked up heat and we’re in for a modern era tale of David versus Goliath, both fighting to claim supremacy. Let’s wait and watch how this turns out! Leave your thoughts in the comments section below.

References

2018 Audi Q8 Exterior Exclusive Renderings Computer Renderings and Photoshop
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Read our full speculative review on the upcoming 2020 Audi Q8 EV.

2020 Porsche Mission E Spyshots Exterior
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Read our full speculative review on the 2020 Porsche Mission E.

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Read more Volkswagen news.

Source: http://fortune.com/2018/05/03/vw-te...

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