Volkswagen falls further behind Tesla in the race to electric

Europe's largest carmaker said Wednesday that it delivered 452,900 battery electric cars to customers in 2021, nearly double its total from the previous year. But that wasn't enough to keep pace with Tesla, which delivered over 936,000 vehicles in 2021.

The German company has committed to spending more than $100 billion over the next five years to electrify its fleet and mount a challenge to Tesla. Volkswagen is already the top seller of electric cars in Europe, and it expects 25% of the vehicles it sells globally to be electric by 2026. "2021 was very challenging due to global semiconductor shortages, but we nevertheless consistently implemented our clear future course," sales boss Christian Dahlheim said in a statement."The doubling of our battery-electric volumes and the high demand for all our vehicles clearly show that we are on the right track."

"Taking a step back, with the chip shortage a major overhang on the auto space and logistical issues globally these [Tesla] delivery numbers were jaw dropping," Dan Ives, an analyst for Wedbush Securities, said earlier this month.

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