Volkswagen is making it clear it will not partake in the EV price war spurred by Tesla’s recent price cuts.
Is an EV price war on the horizon?
After Tesla slashed prices in China, the US, and the EU, across its lineup of electric vehicles, including a 20% discount on the Model Y, analysts predicted it would have a spillover effect on other BEV manufacturers.
We first saw it happen in China when EV maker Xpeng reduced prices by up to $5,300 on some of its most popular models shortly following the Tesla price cuts.
Although Tesla saw “unprecedented demand” as many stores hit new records following the cuts, it put essentially every other automaker (startups and legacy) in a spot to compete.
For example, Vinfast, a Vietnamese EV maker looking to establish a presence in the US, is offering a new special pricing promotion on its first model to make it to the states, the VF 8 City Edition, which will now start at $49,000 with an addition $3,000 direct discount off the MSRP.
Amid growing indications of an EV price war brewing, Ford also slashed prices on its ever-popular Mach-E electric SUV earlier this week. Marin Gjaja, chief customer officer for Ford’s EV unit, told Automotive News:
We have to compete. It’s a competitive marketplace, and it just got a lot more competitive because of what Tesla did. We’re not going to cede ground to anyone.
Volkswagen’s leader says the company will take a different route, sticking to its pricing strategy despite demand concerns.
Volkswagen ID.4 (source: VW)
VW not matching Tesla’s price cuts
According to VW CEO Oliver Blume’s recent statements, the automaker already has a pricing strategy in place and will stand by it.
Blume told German newspapers it would not partake in a price war with Tesla, stating:
We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands.
VW joins General Motors, which also announced it would not offer EV price cuts during its latest earnings release.
Instead of price cuts, VW will aim to achieve profitable growth to become a global EV leader. The automaker delivered around 330,000 ID.4 models in 2022, up 23%, and over 580,000 ID models since launching in 2020.
Volkswagen Group recently brought back former Bentley and Audi designer Andreas Mindt to help lead the company’s EV efforts and bring the company into the modern age.
Electrek’s Take
Tesla’s price cuts are clearly having a profound effect on the EV market. As the EV leader continues to shatter expectations while continuously breaking electric vehicle delivery records, it’s making it difficult for other automakers to compete, especially with lower prices.
Tesla is lightyears ahead in terms of production capabilities because of its focus on zero-emissions EVs from the beginning; other auto manufacturers are now looking to catch up.
While Ford is cutting prices to compete, GM and VW are standing by their pricing strategies. We’ll see how the pricing battle plays out over the next few months.
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Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
XCMG battery swap crane; via Etrucks New Zealand.
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.
Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.
That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.
“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”
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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.