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Report: Volkswagen aims to sell EV for under $23,000

by Justin King

Once dismissive of Tesla, the German automaker is now going all-in on electric vehicles.

Yet another report suggests Volkswagen is aiming to undercut Tesla's Model 3 by a significant margin.

The German automaker aims to sell an entry-level electric vehicle with a base price of less than 20,000 euros (~$23,000 USD), according to a Reuters source.

Known as the "MEB entry," the budget EV is expected to have a production volume of 200,000 vehicles annually. The report does not include a few critical pieces of information that would support the assertion that the car will be a "Tesla rival," however.

Battery prices have been declining for years, facilitating Tesla's shift from a $125,000 sports car to a $35,000 sedan. Prices are projected to continue on a downward trend in coming years, allowing both Volkswagen and Tesla to move downmarket.

It is unlikely VW will release a $23,000 car with 200+ mile range in the near future, which would presumably require the vehicles to be sold at a loss for several years. The most likely possibilities are a shorter-range variant of an upcoming MEB-based car in the near term or a long-range budget car that might not be available for several more years.

The MEB platform architecture is specifically designed for electric vehicles and a wide range of potential body styles.