volkswagen

The competition in the space of electric vehicles may be heating up, as Volkswagen has unveiled a new low-cost electric car in a bid to compete with Tesla.

The ID. 2All will retail for just 25,000 euros

Many car enthusiasts have been impressed with Elon Musk’s ability to consistently build new cars at cheaper and cheaper prices, and this has given Tesla a huge advantage over the competition in the past and allowed the business to scale enormously.

At the moment, the car is only in its concept stage, but the team at Volkswagen are working to make their goals a reality as soon as possible.

Volkswagen is investing 122 billion euros into the shift to EVs

Many countries around the world are working hard to incentivise the transition to electric vehicles in order to meet their net zero demands, and this is reflected in the priorities of major car makers such as Volkswagen.

“As early as 2025, every fifth vehicle sold worldwide is expected be one with an all-electric drive.”

One of the main reasons for such a significant investment is the fact that the company needs to develop new battery factories for all of their cars, and this level of infrastructure can be costly – fortunately, governments in the West offer a series of incentives in the form of subsidies and tax breaks for such initiatives.

Has Tesla met its match?

There are many who believe that the share price of Tesla is considerably overvalued, especially when one compares the value to other carmakers.

Volkswagen, for example, has a market cap of $76 billion compared with Tesla’s $565 billion. This may seem unusual considering that in 2021 Volkswagen sold 8.88 million cars, and Tesla sold just under a million.

Nevertheless, there are many who make the case that Tesla is not solely a car company, but an AI company. In addition to developing much of the technology that other EV companies use, Tesla has also made inroads in neural networks and the robotics space, with the Tesla Bot expected to launch later this year.

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