This Company and Tesla Will Be The Top 2 EV Players by 2025

According to the Swiss Bank UBS this company, which I will reveal in a moment and Tesla, will be the top two electric-vehicle players by 2025. And it’s not NIO or XPeng. UBS also says Tesla leads in a few critical technical areas, including software and ‘ruthless engineering.’

Jack Denton from the MarketWatch reports the details and says forget NIO, XPeng , and other flashy electric-vehicle stocks, because within the next four years it will be Volkswagen VOW, -0.90% competing with Tesla for the crown of most EV sales globally, according to UBS.

The Swiss bank recently increased its forecast for how quickly electric vehicles will be adopted, and is now predicting that EVs will penetrate 100% of the automobile market by 2040. That makes the battle to be the most dominant car maker worth hundreds of billions of dollars.

UBS analysts said in a call with members of the media on Tuesday that they predict that, within the next few years, Tesla and Volkswagen will be the two global leaders in electric-vehicle sales. The analysts expect that Volkswagen will catch up with Tesla in terms of total volume of cars sold as soon as next year, when the two companies could each deliver around 1.2 million cars.

“We think now is the time to be all-in as a car maker,” said UBS analyst Patrick Hummel on Tuesday. “It is about gaining scale as fast as possible, because scale is going to be a driver of profitability.”

“We use the analogy from the tech space, calling Tesla the Apple of the future mobility space, because of an admired piece of hardware in combination with a cutting-edge software ecosystem,” wrote Hummel and other analysts in a report on Mar. 2.

“Volkswagen is well positioned for a value proposition like Samsung — a global brand trusted for its high-quality hardware, produced at scale. This won’t get VW to Tesla’s valuation spheres, in our view, but still offers significant upside from here,” they added.

Tesla's Advantage Over Volkswagen

Tesla still leads Volkswagen in a few critical technical areas, according to UBS. The most relevant lead for the long term is in software, but Tesla also beats out Volkswagen with its integrated electric powertrain, “ruthless engineering,” digitization, and autonomous driving features, said the UBS analysts.

#Tesla
#Volkswagen
#ElectricVehicles
#XPeng
#Nio
#TeslaNews
#Rivian

This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.

Reference
MarketWatch https://www.marketwatch.com/story/forget-nio-and-xpeng-this-company-and-tesla-will-be-the-top-2-electric-vehicle-plays-by-2025-says-ubs-11615306959
Teslarati https://www.teslarati.com/rivian-production-moves-closer-normal-illinois-documents/