A study by Bloomberg Intelligence predicts the German giant Volkswagen will double its production to more than two million battery-powered vehicles in 2024, overtaking Tesla.
The report said high battery costs and limited production capacity meant that most other competitors, including Ford and General Motors, lacked incentive to catch up with Volkswagen’s speed. So Tesla is likely to remain the largest seller of electric vehicles in the United States for some time.
Volkswagen’s production and sales focus on Europe, and Bloomberg expects the company to expand further into China rather than America.
US sales accounted for less than 10 percent of Volkswagen’s total last year, according to its annual report.
Bloomberg said Tesla’s sales in China, where it now makes two models, are likely to suffer as the German company expands into China.
Tesla was one of the early participants in the electric car revolution, accounting for 75 percent of all electric vehicles sold in the United States in the first quarter of 2022, according to Business Insider.