Volkswagen Group VWAGY CEO Herbert Diess is unfazed about Elon Musk-led Tesla Inc TSLA having built a factory just about 200 kilometers (124 miles) from its home turf Germany.
What Happened: Musk-led Tesla is ahead of Volkswagen, growing fast and taking more risks than the German legacy automaker, Diess told CBS News's Lesley Stahl in an interview.
“Tesla is quite ahead currently, and they're growing fast, I have to admit. He is taking more risks than we can. He's now building a plant in Berlin. It's 200 kilometers...from our plant,” Diess said in the interview.
See Also: Volkswagen Looks To Double US Market Share After Eking Out First Profit In Decades
“And I think it's very healthy for us, no, to have a new competitor.”
Why It Matters: Musk last month threw open the Giga Berlin factory, its first in Europe, after a delay of eight months following licensing issues with local authority.
Volkswagen has a large manufacturing facility in Wolfsburg, which doubles up as its corporate headquarters.
Tesla’s ability to make cars locally in Germany will help it boost its market share significantly.
Price Action: VWAGY stock closed 2.41% lower at $22.3 a share on Thursday.
Photo courtesy: Alexander Migl on Wikimedia
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