Volkswagen Overtakes Tesla for the Top Spot in the EV Segment

What does it look like when an automaker dreams big? For many of us, “dreaming big” means setting significant goals and working diligently to achieve them. The same is true for our favorite automakers, but on a larger scale and with far more strategy. How so?

There’s a race slating the 2023 Volkswagen ID.4 Electric Vehicle vs 2023 Tesla Model Y that sets the stage for one of the biggest upsets in the industry over the next few years. Tesla has cornered the market on electric vehicles (EVs), establishing its reputation for building innovative and tech-savvy all-electric rides. However, Volkswagen now challenges Tesla’s reign and is positioned to take the title of the most popular EV brand in the industry.

Here’s a closer look at that goal and the steps Volkswagen is taking to make it happen with models like the 2023 ID.4.

Never Forgetting Its Core Philosophy: The People’s Car Company

In German, “Volkswagen” translates to “the people’s car company” and reflects this automaker’s mission since its founding in the early 1930s. When production resumed after World War II, Volkswagen kept its philosophy at the forefront of its operations, never losing sight of what matters most: the individuals behind the wheel.

We see this philosophy in every model they’ve produced since. Moreover, we see it in how Volkswagen has consistently evolved, improving the user experience and meeting new demands with models like the 2023 ID.4 that answer the need for more affordable and practical EVs.

Alternatively, Tesla seems to take the opposite approach. Sure, this automaker answers drivers’ needs but caters to those with deep pockets. Moreover, Tesla has always revolved around its founder, Elon Musk.

Initially, Musk had the Midas touch, proving his ingenuity was what America seemingly needed as he fine-tuned the EV segment and launched his SpaceX rocket company. However, Musk’s reputation took a dramatic hit when he publicized his worldview, purchased Twitter, and asserted his will in a polarized arena, highlighting that his focus wasn’t on revolutionizing the automotive and space industries as we once thought.

Volkswagen Puts a Plan in Place: From Europe to America

VW turned heads at the 2022 World Economic Forum when it announced its plans to overtake Tesla by 2025. While many assumed it was a lofty and unachievable goal, VW knew better than to speak ahead of itself and was already well on its way to achieving its mission. Unsurprisingly, VW has been working toward that goal for years, reaping the benefits of perseverance by outselling Tesla in Europe since 2021. The numbers don’t lie, with Volkswagen selling 310,000 electric vehicles in Europe and Tesla falling significantly behind at approximately 170,000 units in 2021.

So, what’s the secret to the company’s success in Europe? We see it in models like the ID.2all. Only available in Europe, the upcoming ID.2all answers a dire need for affordability in the EV segment. While Musk has promised an affordable EV priced around $25,000 for years, he has yet to deliver, giving VW the perfect opportunity to prove it’s the true “people’s car company” with the ID.2all.

This hatchback is expected to start at $26,600, making it incredibly appealing against rivals like the Tesla Model 3, which prices north of $40,000. Once again, VW answers a specific need with the ID.2all, fulfilling its brand philosophy and producing a model the people want and need. Instead of empty promises, Volkswagen delivers.

While the all-electric ID.2all isn’t slated for the US since hatchbacks aren’t as popular here as they are in Europe, VW is still on an upward trajectory thanks to models like the 2023 ID.4. This all-electric SUV rivals the Tesla Model Y as a more affordable and versatile option for Americans. Industry experts agree, with Car and Driver scoring the ID.4 higher than the Model Y, the latter of which comes at a premium price and focuses more on technology than interior comfort and the user experience.

Once again, the theme is apparent: VW is the people’s car company, tailoring its models to regional needs and expectations.

The Inherent Value of the 2023 ID.4

American drivers are well aware of the shift in the EV segment, turning to VW and models like the ID.4 to deliver the versatility, practicality, and affordability they need. This shift is apparent in Tesla’s recent fall from grace, with the Axios Harris Poll reporting Tesla fell to 8th place in 2021, 12th place in 2022, and 62nd place in 2023. While Musk, his investments, and politics are to blame, VW is taking more of the market share by proving that even the rapidly changing auto industry and global economy will never force them to lose sight of their founding philosophy.

Because of this, the 2023 ID.4 offers an inherent value you won’t find with the 2023 Model Y. The ID.4 is appealing for reasons beyond its more affordable price tag; however, it certainly helps that the 2023 ID.4 is only $38,995 compared to the $47,240 Model Y. With the ID.4, Volkswagen recognizes and responds to the needs of drivers without compromising its values or outpricing its models—but there’s something else to consider.

The high cost of Teslas like the Model Y and its siblings put Tesla electric vehicles out of reach for most people, despite Musk touting a direct-to-consumer approach. That business strategy makes it appear like Tesla is all about its customers, eliminating dealerships to deliver a better overall customer experience; however, it ignores a critical component of the car-buying and owning experience in having a reliable and reputable support system.

Unless you live in a major city, buying, procuring, and repairing your Tesla isn’t a simple matter because it requires traveling to a Tesla showroom or collision center. Again, Tesla forgets that not everyone has the extra time or money to accommodate such an exclusive operating strategy.

ID.4 owners don’t have such an issue, giving Volkswagen another significant advantage over Tesla that customers will appreciate. VW dealerships are top-notch, offering an unparalleled customer experience that matches the VW philosophy as “the people’s car company.” Because of this, buying a model like the 2023 ID.4 is not only an investment in your future—it’s an investment in an automotive partnership; your purchase includes a front-row seat to ID.4 experts that aren’t hundreds of miles or hours away but right down the street.

It Comes Down to Value and Accessibility

When you purchase a vehicle, you’re investing in more than a car, truck, or SUV to reliably get you from Point A to Point B; you’re investing in a brand. That investment may seem minuscule compared to the actual money you spend, but think about the brand’s reputation for standing by its customers and pivoting to meet our evolving needs. Think about how that translates to your experience behind the wheel.

On paper, the VW ID.4 and Tesla Model Y are comparable performers, but their inherent values are vastly different. With a Volkswagen, you’re investing in “the people’s car company” at a fraction of the price that Tesla asks of its customers. Moreover, VW is readily available and accessible to its customers, reflecting its genuine priorities. Sure, success is the company’s goal, but not at the cost of relationships. Can the same be said for Tesla? These considerations put the ID.4 and the VW brand legions beyond the Model Y and Tesla, mile after mile.