VW CEO praises Tesla on Q2 earnings, says it could become most valuable company in the world

Elon-Musk-Herbert-Diess

When Tesla reported its Q2 2020 earnings on Wednesday, Wall Street analysts and critics were surprised with the automaker’s fourth straight profitable quarter, paving the way for inclusion into the S&P 500.

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But for Volkswagen CEO Herbert Diess, he wasn’t surprised Tesla was able to post a profit amidst a global pandemic while other automakers’ sales tumbled.

Responding to a LinkedIn post by Ferdinand Dudenhoeffer, Professor and Director at the Center for Automotive Research (CAR), Diess commented that his counterpart at Tesla defies critics at every turn, and that it could one day be the most valuable company in the world.

Elon Musk delivers results that many didn’t think possible. They show that electric cars can be profitable. As one of the few automakers Porsche AG (e.g.), Tesla will drive through the Corona crisis without a loss quarter. It confirms to me that in five to ten years the most valuable company in the world will be a mobility company — that Tesla can, Apple or Volkswagen AG.

 

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Diess is one of the few legacy automaker chiefs who is not afraid to praise Tesla, having previously said his company views Tesla as a serious competitor, and every other automaker should as well.

He has also thanked Musk for bringing electrification to the mainstream market, but is confident that VW will one day overtake Tesla in the electric vehicle (EV) race.

VW’s foray into electrification has had a rough start, with major software issues plaguing the ID.3. The compact EV was supposed to be released last month, but has been delayed until September while VW tries to work out the kinks in the software. Even with the delayed release, the ID.3 will ship without all of its features, which are promised to come in a future over-the-air (OTA) software update.

Then there’s a dispute between two EV battery makers that could result in a “catastrophic supply disruption” in their efforts to build EVs in Tennessee.

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