After making the bold claim last week that the manufacturer will have ‘EVs as good as Tesla’s for half the price by 2020’, a new report from Bloomberg today shares that VW may introduce a subcompact EV to the I.D. Concept lineup with an affordable price point. However, this being a subcompact car gives further evidence that this won’t be a “Model 3 killer” like VW has hyped its lineup to offer…
As we’ve previously reported, the first VW all-electric vehicle in the I.D. Concept lineup, “Neo”, is currently planned to launch in 2020.
So far, Neo has been rumored to start at around $30,000 and come with three battery configurations. However, as we previously noted, that wouldn’t line up with VW CEO’s claim that it would have ‘EVs as good as Tesla’s for half the price by 2020’.
Previous reports have said Neo’s size would be “slightly longer than the VW Golf”, likely putting it in the compact segment.
Today’s news from Bloomberg says VW will also introduce a subcompact EV priced at around $21,000 (18,000 euros) and will be available “sometime after 2020”.
This price point would be closer to half the cost of the Model 3, but would be offering a much different form factor. Even before this news, Fred noted how the Neo and Model 3 won’t be competing in the same vehicle segments.
I think it can be a success at that price, but I think they are doing themselves a disservice by comparing it to a Model 3.
They don’t compete in the segment and it’s not even the same form-factor. It’s no ‘Tesla Killer’.
Also it is worth noting that Tesla’s Model 3 will cost $35,000 in 2020 as the base model is expected to go into production early 2019. So that “half the price” actually turns into 2/3rds the price.
So we’re basically looking at a smaller than Chevy Bolt EV with a likely smaller battery and range for $21,000. Slap a Federal tax credit on there and some state incentives and you’ll actually get yourself a pretty compelling vehicle for many people.
Today’s report also says that VW is planning to sell 200,000 of these subcompact EVs and that it may be produced at the manufacturers Emden, Germany factory. As we’ve noted before VW is great at building hype around its EV plans, but doesn’t have much to show for it yet.
Remember that time VW said it would be the world’s biggest EV maker in 2018? Maybe more cars and fewer press releases are in order.
What do you think? Can VW offer a compelling all-electric vehicle with a price of $21,000? Should everyone stop with the Tesla killing language? Share your thoughts in the comments below!