The German car company is investing big in its electric future, as it sets its eyes on Tesla.
Volkswagen has revealed it is expanding its focus on electric vehicles, investing billions to retool its factories.
In a call with investors and analysts on Monday, Volkswagen CEO Herbert Diess said the car company was spending €73 billion (AU$118B) to convert two German factories to support production of electric vehicles, reports news outlet Reuters.
The Volkswagen boss admitted the company was aiming to compete with electric car maker Tesla.
“Yes, it is going to be a race with Tesla,” Mr Diess said.
“They are also ramping up fast. We have more different body styles, and when it comes to an established dealership network, we should have an advantage over Tesla.”