EV News from VW & Tesla
Source: VW ID Crozz
Ahead of Electric Targets
Volkswagen just announced it's way ahead of schedule in the production of electric vehicles. In fact, it's two years ahead of its targeted numbers. By the end of 2023, it will have produced 1 million electric vehicles. It expects to have produced 1.5 million EVs by 2025. These are important milestones for VW because the future of driving in the 2020's is accelerating toward EVs, These are vehicles that are all-electric with no emissions, green, clean and great for the global environment.
Tesla and China Synergies
Meanwhile, Tesla is reaching a landmark. The first delivery of its China-made Model 3 EV will hit on December 30, 2019. The turnaround time on these EVs is incredibly fast. In fact, it's a record for a global automaker in China. Construction started on Tesla's first plant outside of the US, in Shanghai, China in January 2019. Vehicle production in the plant started in October and the first products will be delivered December 30th. The price of the Model 3 is about $50,000.
China is World's Biggest EV Market
China is by far the world's biggest electric vehicle market with 1.3 million electric vehicles sold in 2018. Tesla is capitalizing on the China opportunity. In its new Shanghai facility, it hopes to produce 250,000 vehicles a year after they add in production of the Tesla Model Y. The Chinese government is supporting Tesla vehicle sales in China by exempting their models from purchase taxes. On its part, Tesla is smartly building a big customer base by establishing service centers and charging stations across China to provide substantive after sales services to its Chinese customers. These investments in EVs by VW and Tesla are worth watching by investors.