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Can Volkswagen Take Over the EV Industry?

Electric Vehicle manufacturers have been making huge strides in the automotive industry. Electric cars and even hybrid cars used to commonly be the butt of jokes in car culture, but now they are probably the trendiest types of vehicles to own.

As fuel efficiency was backed up by performance, people really started to consider cars that could save them money in gas. Maybe even help the environment as a positive bonus as well. That mentality has culminated into Tesla’s rise to fame.

Tesla gave people an electric car with no compromises, other than the lack of charging stations, and created the demand that we see today for EVs. Not only did the car work off electricity, it worked well off of electricity. This vehicle hit every target it was aiming for and sold for a competitive price to boot.

Of course, this leaves every other car company scrounging to put together an EV to compete. It’s obvious the impact Tesla has created when you look at GM who promise to only produce Electric vehicles by the year 2035. So far however, Tesla reigns king in the electric vehicle market with almost 500,000 delivered units in 2020.

So how can German automotive powerhouse Volkswagen hope to compete with only around 230,000 in sales, during the same year Tesla sold 500,000. Are they really going to outpace Tesla and take over the EV industry? What should we expect from Volkswagen and how much resources are they investing into the future of the electric car?

These are some factors that may explain Volkswagen’s possible take over the electric vehicle space. If you are looking to purchase an electric vehicle and are stuck with a damaged or totaled car, there is no need to worry. There are always companies willing to purchase damaged and totaled vehicles, even online.

Shifting Production

Volkswagen has shown they are completely serious about tackling the EV industry. Utilizing their modular production platform, or MEB, they are able to pump out cars quickly and cheaper than Tesla. Volkswagen has a foundation of years behind them, allowing them to streamline the industrial line and find efficiencies that save time and money when building cars.

This would be great if there wasn’t one big problem. Batteries are expensive. Car batteries are comparable to the engine in conventional cars, both are the most vital and expensive part of the car. Volkswagen sadly has gotten very good at making engines, and now needs to shift gears to batteries.

Getting The Right Batteries

Volkswagen plans to open up 6 new factories to create the batteries their cars need. Once these factories are up and running the cost for them to make electric vehicles is slashed dramatically, meaning more cars at a cheaper price for the consumer.

If you want to make a good electric car, it seems the battery business is the place you need to spend time in. Luckily for Tesla, they have some well spent history in space. Tesla has in the past dabbled in solar panels and batteries, meaning they have some experience that has been translated successfully into creating electric car batteries. Tesla has even teamed up with Panasonic to create car batteries which has given them the foothold they’ve held all this time.

Developing The Software

This is a pretty abstract concept that has dictated which businesses are successful in the software world. How simple, elegant, innovative, endearing, efficient, clear, and feature rich a software is translates into brand loyalty. Apple has always warred with Microsoft in this regard and it seems a new schism could be created in the electric car world.

One of the most characteristic aspects of Tesla is their huge touchscreen displays that are easy to navigate and allow the user to get the most out of a control station. It is what completes the great feeling of how modern the car you are driving is. Pair that with the self-driving feature, Which Tesla plans to provide through a subscription fee, and you get why the brand is changing the face of the car industry.

Volkswagen is working on the software side of things, promising wireless updates to the ID.3 this summer. Could they possibly compete with Tesla? It’s unknown but as of now Volkswagen has not distinguished itself yet as a current brand as they have not provided that same experience Tesla owners can experience.

It seems Volkswagen is on route to become the top producer of electric vehicles, but their ability to compete with Tesla culturally is still questionable. Even when Volkswagen reaches their perfect price and profit point, Tesla might have something yet up their sleeve.

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