Volkswagen Just Set a Very Big Goal Going Against Tesla

Watch out Tesla, Volkswagen (VW) has said it wants to become the most profitable electric car company in the world.

The company announced that it will be spending 44 billion euros on electric cars, digitalization, autonomous driving, and new mobility services by the year 2023. VW also said it plans to increase productivity of its factories by 30 percent by the year 2025.

“One aim of the Volkswagen Group’s strategy is to speed up the pace of innovation. We are focusing our investments on the future fields of mobility and systematically implementing our strategy,” said Herbert Diess, the CEO of Volkswagen.

The announcement came after a Supervisory Board meeting Friday.

Diess told CNBC’s Annette Weisbach that he expects the company to be the most profitable maker of electric cars thanks to its economies of scale.

The company will roll out 50 all-electric car models by 2025. “This will be a paradigm shift for our company,” said Dies. He added that Volkswagen will “continue to set very ambitious goals.”

Tesla is number one currently in the electric vehicle arena and had made just over 53,000 Model 3s in its last quarter. CEO Elon Musk has been promising to hit a production rate of 10,000 vehicles a week.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.