The chief govt of Volkswagen believes Europe’s largest carmaker can overtake Tesla to turn into the world’s largest vendor of electrical automobiles by 2025.

Chatting with CNBC’s “Squawk Field Europe” on the World Financial Discussion board in Davos, Switzerland, on Tuesday, Herbert Diess stated assuaging provide chain points would probably assist create some momentum for the German auto big over the approaching months.

“Markets are all the time concerning the future,” Diess stated when requested why traders valued Tesla at such a premium to different conventional carmakers, akin to Volkswagen.

“Tesla at present is within the lead in terms of EVs, in all probability additionally it’s the most digital automotive firm already and so they have some benefits,” he continued. “We’re nonetheless aiming at maintaining and doubtless overtaking by 2025 in terms of gross sales.”

Diess stated Tesla has been capable of exhibit good outcomes and excessive returns with a reputable enterprise mannequin. Nonetheless, he reaffirmed his perception that Volkswagen might quickly shut the hole in terms of EV gross sales.

“I feel for Tesla, additionally, ramping up now will in all probability be a bit tougher. They’re opening up new vegetation and we are attempting to maintain up pace. We predict within the second half of the yr, we’re going to create some momentum,” Diess stated.

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