Volkswagen Group VWAGY CEO Herbert Diess on Friday praised Tesla Inc TSLA CEO Elon Musk for his speed and approach and said the two automakers can be a complementary force in the electric vehicle market.
What Happened: Diess launched Volkswagen's ID. Buzz, the electric variant of its iconic Microbus from the 1950s, at the South by Southwest conference in Austin, Texas. The model will first hit European markets.
In an online conversation with tech-focused channel Fortt Knox, Diess shared his thoughts about Tesla and said he was “impressed” with Musk’s pace, his approach, and how the two companies can learn from each other.
“I am always curious about what he's coming forward with,” Diess said.
The CEO explained how the two companies are playing out different roles in the global automotive sector that is rushing to transition from fossil fuels to more climate-friendly electric vehicles.
“Tesla is a pioneer ... challenging the industry, starting with a white sheet of paper," Diess said, adding that Volkswagen has iconic products that can be reinvented for the market.
“I think we are very complementary you know. It's kind of Tesla paving the way.”
Why It Matters: The 63-year old Volkswagen CEO, who was in the past offered a job at Tesla, has openly praised Musk and his EV company, a rare trait in the automotive sector. Musk had reportedly offered Diess the CEO role at Tesla in 2015.
Diess in October got Musk to address Volkswagen executives and had praised Tesla’s ability to quickly address the global semiconductor shortage as impressive.
Volkswagen and other European automakers are under added pressure now that Tesla has secured a final approval to begin production at its Giga Berlin factory.
General Motors Co GM and Ford Motor Co F are also scrambling to boost EV investments to take on Tesla.
Price Action: Volkswagen's U.S. shares ended 0.5% down at $22 on Friday, while Tesla stock closed 5.12% lower at $795.35.
Photo by Alexander Migl on Wikimedia
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