Source: Tesla Motors.

At the IAA in Frankfurt presented Volkswagen s (WKN: 766 403) daughter brands Audi and Porsche
Concept versions of battery-powered electric vehicles. When the production starts, they seem likely for the first direct competitors of Tesla Motors (WKN: A1CX3T)
to be electric luxury car.

Audi announced that its electric car, a sport utility vehicle, beginning in 2018 to go into production. Rumor Porsche is expected to rise a year later with the ring.

But as soon as the auto show was over, VW has been accused of having provided millions of diesel vehicles with a software that cheating in emissions testing.

VW now face penalties in the billions. In addition, the Head of Development of Audi and Porsche (and some other officials) were dismissed; be and the aforementioned objectives for 2018
therefore questioned. VW will be forced sometimes to his budget for the product roll back development to the massive costs on in connection with this scandal the
Companies to roll, to be able to cover. In addition, VW is now working with a completely new management level.

AUDIs “e-tron quattro Concept” is a design of battery-powered electric SUV that will roll off the production line according to Audi beginning 2018. Pictures: Audi.

Some proponents of electric vehicles were VW and in September; and that only in the US VW has sold in September in the United States 44,000 vehicles.

As innovative as Tesla has also been previously so was the company does not even begin to be able to circulate the balance of power in the global automotive industry. Tesla has
can make only attention to themselves and the view changed about what an electric vehicle is actually in a position.

The Model S has made in the niche market of high-performance luxury sedans for excitement. Since its introduction, it was one of the best-sellers in this segment. The segment, however,
quite small and can be found in only a few big names. And I believe that this brings Tesla strength right to the point and is the reason why the company this market niche
will continue to dominate. Automobile giants like VW will not consider in the future Tesla as a serious threat.

VW will have (even after the diesel-scandal) over huge resources that can be invested in the development of electric vehicles. The performance data
the Porsche mission e are Tesla and investing in electric vehicles could be part of this
new strategy be (at emission testing of electric vehicles, it can also not too easy to cheat). Furthermore, I believe that VW will not be alone, and other large
Automobile manufacturers are finally starting to put more money and attention in the development of “real” electric vehicles.

But Tesla&s projection could be already unaufholbar.

John Rosevear: What&s next accurately with VW, you can not answer. I believe that it is first, following three critical questions to
answer.

Must VW make cuts in its ambitious plans about electric vehicles due to the associated costs with the scandal?

For this purpose, certainly not even VW currently has a ready answer. It is quite possible that the project be delayed by several years. However, it may also be that the new CEO Matthias Müller even more money and
Will invest effort into electric vehicles, in order (and its public image) to help the company to overcome the emission scandal.

Are these vehicles a serious competition for Tesla?

Tesla knows how to build excellent battery powered vehicles. And will show how the Model S and Model X Tesla also the luxury demands of quality-conscious customers.

But one must not write off Porsche and Audi. The two VW subsidiaries are not only exceptionally well in producing luxury high performance cars, but electric vehicles both
Brands enjoy massive backing of the respective boardrooms who want to take a leadership position in the electric vehicles sector.

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