It seems like Tesla (TSLA) and BW are destined not to cross paths. Well, not right now anyway. In a tale of two continents, both have decided to make a move on the other's patch.
Tesla opened its first-ever giga-factory earlier this week to much fanfare from German politicians. The move is expected to see Musk and his team hire 12,000 workers. The factory is also expected to pump out 500,000 cars annually (more than the 450,000 battery-electric vehicles that main rival Volkswagen sold globally in 2021) and generate 50-gigawatt hours of battery power, surpassing all other plants in the country.
Meanwhile, stateside German marque Volkswagen has outlined its plan to invest a whopping $7.1b to expand its EV offering in North America. The money will fund expansions to the product range, research and development, and manufacturing. The automaker's goal is for 55% of sales in the United States to be fully electric by 2030. VW will begin phasing out the production of gasoline-powered vehicles in North America, and will completely stop offering them by the early 2030s.
Why it matters
It's simple — each brand wants a slice of the pie from the other. In Europe, VW holds the upper hand in the market, with a 25% market share compared with Tesla's 13%. Keep an eye out on this chess game with more tactical global moves sure to be on the horizon.
