Volkswagen Will Challenge Tesla With $35,000 EV In The U.S.

Volkswagen is preparing for a major game in the U.S. electric vehicle market, targeting Tesla with the announcement of an affordable electric vehicle priced below $35,000 (€33,000) expected to enter the market by 2026. The Vow of Reinhard Fischer. Reinhard Fischer, senior vice president and chief strategy officer for U.S. company VW Group, made the […]

Volkswagen is preparing for a major game in the U.S. electric vehicle market, targeting Tesla with the announcement of an affordable electric vehicle priced below $35,000 (€33,000) expected to enter the market by 2026.

The Vow of Reinhard Fischer.

Reinhard Fischer, senior vice president and chief strategy officer for U.S. company VW Group, made the announcement of at Reuters Events Automotive USA 2023 in Detroit. He emphasized Volkswagen’s commitment to providing an affordable electric vehicle option to U.S. consumers.

Although Fischer did not go into details about the future model, the promise of an electric vehicle worth less than $35,000 is intended to undermine Tesla’s dominance of the American electric-vehicle landscape. The German carmaker is entering the ring, and it plans to launch the Tesla Model 3 and Model Y models for its money.

Made in the US or Mexico?

One of the intriguing aspects of the Volkswagen plan is where the new electric vehicle is made. Fischer hinted that the car could be built in either the United States or Mexico. Currently evaluating many production sites, including existing plants in Chattanooga, Tennessee and Puebla, Mexico, Volkswagen is committed to making strategic decisions to optimize production and logistics.


Power Play: Local battery.

As a strategic move to maximize incentives under the US Bipartisan Infrastructure Act, Volkswagen is considering local battery assembly for a new electric vehicle. This ambitious move is in line with the company’s broader plans, as they have already announced their intention to produce battery packs in Canada for their existing and future North American electric vehicles.

Volkswagen’s decision to introduce low-cost EVs is not just a step in the market; it is a challenge to Tesla’s superiority. By offering a competitive alternative to the popular Tesla Models 3 and Y, Volkswagen positions itself as a serious competitor in the growing U.S. electric vehicle market.

  • MEB Platform Foundation: The new low-cost electric car is expected to be based on Volkswagen’s MEB platform, the same base used for models such as ID.4 and ID.5.
  • Impressive range: Volkswagen targets a range of at least 250 miles (400 kilometers) for a new electric car, ensuring it is not only affordable, but also practical for different users.
  • Subscription accounting: In the modern style, Volkswagen is considering offering subscription services for its new electric vehicle. This would allow customers to pay a monthly fee to enjoy the driving experience without a long-term ownership obligation.

    • In the ever-evolving electric-vehicle landscape, the Volkswagen movement to make electric vehicles more affordable can be a game changer. The race to win the hearts (and wallets) of American consumers continues, and Volkswagen positions itself as a strong contender. Fasten the electric ride is about to become more exciting!

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