Earlier this week, the Union Bank of Switzerland (UBS) named Tesla the most valuable software company of the future, and in a recent analysis, the firm is now highlighting Volkswagen as the closest competitor with Tesla’s electric vehicles (EVs).
On Thursday, Fortune reported that, after tearing down the VW ID.3, the UBS determined that the systems beneath VW’s EVs will be fully cost competitive with Tesla, and analyst Patrick Hummel even went on to say that the ID.3 was the “most credible EV effort by any legacy auto company so far.”
Overnight jitters around $TSLA:
— Motorhead (@BradMunchen) March 3, 2021
To be sure, VW’s ID.3 – a precursor to the more recently-produced crosssover model, the ID.4 – sold incredibly well in 2020, especially in Europe. In addition, the company’s shares have climbed 5.6% to the highest they’ve been since July 2015, when CEO Herbert Diess joined the company from BMW AG.
Like many EVs, VW’s ID.3 started off with some production issues, and major disruptions from the COVID-19 pandemic. However, it has since overtaken Tesla Model 3 sales in a number of European countries, and the company plans to double its share of EV sales this year – with a goal of between 6% and 8% of its total sales being completely electric.
VW hopes to deliver at least 700,000 EVs in 2021, just behind Tesla’s target of 750,000. Whether they do or not, they’re certainly slated to compete with Tesla, especially in their home markets throughout Europe.