Can VW's Electric Cars Compete With Tesla's?

The New York Times reports:
Not long ago Volkswagen was a global pariah after pleading guilty to the biggest emissions fraud in automotive history. Now it is the toast of the stock market, with its shares worth twice as much as they were a year ago.

What happened?

Ironically, Volkswagen's misdeeds helped pave the way for its reversal of fortune... The financial commitment Volkswagen made then, when sales of electric vehicles were minimal, is paying off now as the company rolls out a line of vehicles developed from the ground up to run on batteries, with more interior space and more appeal than adaptations of gasoline vehicles... Investors have noticed, lighting up online stock forums with chatter about Volkswagen and rewarding other established carmakers, like General Motors and Ford Motor, that are pivoting to electric propulsion. Shares of Tesla, on the other hand, have slipped. Tesla is still the most valuable car company in the world by a wide margin, but investors are no longer as certain that Tesla will have the fast-growing electric car market to itself...

Volkswagen also benefited from a report issued this month by analysts at UBS, the Swiss bank, which rated it as the traditional carmaker best positioned to compete with Tesla because it already has the ability to mass-produce electric cars economically... With 665,000 employees and sales of 9.3 million vehicles last year, Volkswagen is the second-largest carmaker in the world after Toyota. It can spread the cost of developing new technologies over millions of vehicles and undercut Tesla on price. By 2025, Volkswagen will be able to produce electric vehicles for less than it costs to build a gasoline or diesel car, UBS analysts wrote in this month's report.

They cautioned that Tesla retains a significant lead in battery technology and autonomous driving software.
Sales of electric VW cars tripled last year, to 230,000 vehicles, the article points out — noting that that's just the beginning. This week VW also announced plans to employ 10,000 software engineers to work on new technologies including autonomous driving, becoming the second-biggest software company in all of Europe.

'The diesel scandal remains a financial burden. The company disclosed in its annual report this week that potential liabilities from lawsuits, such as one by shareholders claiming the company misled them, could cost 4.2 billion euros, or $5 billion. That is in addition to the tens of billions of euros Volkswagen has already paid in fines and settlements since 2017 after admitting that it programmed diesel cars to produce lower emissions in testing conditions than in normal use.'

But 'Investors this week were focusing on Volkswagen's future rather than its past...'

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