Volkswagen CEO sees strong second half of 2022, sees progress on Tesla

BERLIN Reuters -- Volkswagen sees a strong second half of 2022 and expects progress in catching up with rival Tesla as chip shortages start to offset supply chain bottlenecks and rising costs, the carmaker's CEO said on Tuesday.

According to Herbert Diess, Chief Executive Herbert Diess, "We are earning more than ever," he said at a works meeting, and Volkswagen is ramping up electric vehicle volumes in its biggest markets in Germany and China due to easing semiconductor shortages.

The CEO said that this year the carmaker will be able to meet its goal of becoming a market leader by 2025 if it takes advantage of the moment while the US electric car maker burns cash on large investments.

Elon Musk has to ramp up two highly complex factories in Austin and Gruenheide at the same time, as well as expand production in Shanghai. That's going to take strength out of him, Diess said.