Skip to main content

Who Are The Car Execs Trying To Topple Elon Musk?

Volkswagen and Toyota sold 10 to 11 cars for every one Tesla in 2021.

While Tesla ( (TSLA) - Get Tesla Inc Report) is still the first company that many associate with electric vehicles, the situation is changing by the moment — a recent report found that, while Teslas accounted for 79% of all electric vehicles sold in 2020, hundreds of new models will be on the market by 2025.

According to a recent feature by Bloomberg, 2021 saw Volkswagen ( (VLKAF) ) and Toyota ( (TM) - Get Toyota Motor Corp. Report) sell 10 to 11 for every Tesla while both automakers also pledged $170 billion to expanding its electric vehicle offering.

While the Volkswagen sold only 322,000 fully electric vehicles (its goal was around 600,000), the company is ramping up production by opening new  factories in China and the Czech Republic as well as its home base of Germany. It also plans to have over 27 electric models available for purchase by the end of 2022.

Toyota, too, has committed 8 trillion yen (around $70 billion USD) to developing electric cars and recently doubled the number of fully-electric vehicles it plans to sell before 2030 to 3.5 million.

TheStreet Recommends

As electric vehicles become mainstream, Volkswagen and Toyota may have the additional advantage of affordability: while Tesla offers a model that costs around $50,000, it is still a luxury vehicle for most. Data from IHS Markit predicts that Tesla cars will make up only 20% of the electric car market share by 2025.

"When the two biggest car companies in the world decide to go all-in on electric, then there's no longer a question of speculation — the mainstream is going electric," Andy Palmer, a former executive of Aston Martin and Nissan Motor Co., told Bloomberg.