Volkswagen (VWAGY) may be gunning for Tesla (TSLA), or perhaps General Motors (GM), with an electric car costing well below $30,000.


The German carmaker also will convert three factories to make the “Tesla rival,” sources told Reuters, which put the price tag at about $23,000.

Separately, Bloomberg described the car as a subcompact crossover, potentially generating 200,000 unit sales starting after 2020. It pegged the price around $21,000.

Volkswagen’s Tesla Rival?

The Model 3, Tesla’s electric sedan for the masses, is set to debut in Europe next year. But Tesla’s and VW’s electric car models would compete in very different segments given their differing form factors, some critics noted.

The Tesla Model 3 starts at $46,000, before incentives, or more than double the reported price of the VW electric car.

Meanwhile, a price of $21,000-$23,000 would put Volkswagen’s electric car closer to the starting price of a Nissan (NSANY) Leaf ($29,990) or GM’s Chevrolet Bolt ($36,620).

VW’s Electric Car Ambitions

Previously, Volkswagen has set a goal of selling 1 million electric cars a year by 2025. After the 2015 diesel scandal, the company face tighter emission rules in the European Union, as do automakers broadly, across the world.

Volkswagen is likely to discuss “far-reaching” alliances with battery cell maker SK Innovation as well as Ford Motor (F), sources told Reuters. That could include certain Volkswagen vans being produced at a Ford plant in Turkey. Volkswagen declined to comment to Reuters.

Ford and Volkswagen announced a “strategic alliance” in June, but ruled out cross-ownership stakes.

Volkswagen stock fell 3.7% on the stock market today, Ford lost 1.2%, GM dipped 0.7% and Fiat Chrysler (FCAU) dropped 1.1%.

E-Bikes And E-Scooters Join Electric Car Rush

Meanwhile, Ford is buying dockless electric scooter company Spin and GM is making two electric bikes for release in 2019.

As automakers adapt to a changing mobility landscape, they confront rapidly rising costs to develop electrified, self-driving taxis.


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