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As the stock prices hit dizzying highs, automobiles manufacturers gain ground on Tesla

The biggest carmaker in the world is beginning to gain ground on the Tesla manufacturing company. As per figures released on Wednesday by the firm, Volkswagen delivered 231,600 battery-electric cars in the year 2020. Though it still accounts for less than half of the amount of Tesla deliveries, it marks a 214% rise over the previous year as well as shows that the Germany’s big automobile industry is starting to threaten the pioneer in electric vehicles.

“We are on course to attain our goal to become the market leader in the battery electric vehicles,” said Ralf Brandstätter, the Chief Executive Officer of Volkswagen Passenger Cars.  The new ID.3 that sold 56,500 items was Volkswagen’s most successful battery electric vehicle. The sales of the e-Golf portable and still smaller e-up! 41,300 as well as 22,200, respectively, were present. 47,300 e-tron SUVs and sportsback models were sold by Audi, the premium brand of the company, while consumers ordered 20,000 electric Porsche Taycans.

Hybrid vehicle sales, fuelled by electricity and traditional fuels, have also risen. Last year, Volkswagen made sales of 190,500 plug-in hybrids, a leap of 175% relative to 2019. “2020 was a defining moment for Volkswagen as well as reflected a milestone in electric mobility,” Mr. Brandstätter stated. However, Tesla still faces a daunting obstacle. As announced earlier this month, the organization headed by Elon Musk achieved its target of constructing 500,000 cars in the year 2020. Output and deliveries improved by over a third from 2019 levels, a remarkable improvement, especially given that thanks to the epidemic, the firm’s factory in the Fremont, California, was closed for almost two months.

Since establishing another in China in the year 2019, it is constructing a plant in Germany. Investors have compensated Tesla by rendering it one of the most profitable firms in the world. The market size of Tesla is over eight times that of Volkswagen, at the cost of US$805 billion (A$1.03 trillion), even though the German corporation manufactures only 19 times as many cars. Volkswagen has stated it plans to spend EUR 35 billion ($54.75 billion) in electric cars by 2025, and consumers are starting to respond to sales projections for 2020.

By 2030, the automotive giant plans to launch nearly 70 pure electric vehicles as it races to keep up with Tesla. Other German carmakers are entering the chase. In the year 2020, BMW delivered 44,530 battery-powered electric cars, up 13% from the previous year, and more than 148,000 plug-in hybrids. About 160,000 plug-in hybrids, as well as pure electric cars, were sold by Daimler’s Mercedes-Benz last year. And as the pandemic forced total business revenues into reverse, the electrical boom arrived. In 2020, the Volkswagen Group delivered 9.3 million vehicles, a 15 percent drop from the previous year, but it said sales were down by just 3.2 percent in December as demand bounced back.