SPY328.73+5.23 1.62%
DIA271.70+3.60 1.34%
IXIC10,913.56+241.30 2.26%

Tesla Model Y A 'Thought Through' Car, Volkswagen CEO Showers Praise After Test Drive

Tesla Inc’s (NASDAQ: TSLA) Model Y is a reference car for other automakers, according to Volkswagen AG (OTC: VWAGY) Herbert Diess.

· 09/09/2020 04:32

Tesla Inc’s (NASDAQ:TSLA) Model Y is a reference car for other automakers, according to Volkswagen AG (OTC:VWAGY) Herbert Diess.

What Happened: A day after he disclosed that the Palo Alto-based electric vehicle maker's CEO Elon Musk took a Volkswagen ID.3 vehicle on a test drive during their meeting, Diess said he too had taken the Model Y for a spin.

“Of course I also tested a Tesla Model Y – with my colleague Frank Welsch,” said Diess on his LinkedIn page. "This car is for us in many aspects (not in all!) a reference: user experience, updatability, driving features, performance of the top of the range models, charging network, range."

Diess had some criticism for fellow automakers who don't build electric vehicles from the ground up.

“Model Y was/is thought through as an electric car - as is the ID.3. Many of our competitors still using their ICE platforms. The result: They aren’t getting the best EVs.”

Why It Matters: The Volkswagen CEO had clarified earlier that there is no deal or cooperation in the making with Tesla after Musk met him.

"I think, for a non-sporty car, it’s pretty good,” Musk gave a positive review to the ID.3 after taking it out for a short drive, according to a video Diess posted a day earlier.

The German automaker has already commenced the production of the all-electric ID.4 vehicle in Germany, which will be made in the United States in 2022.

The German government is promising Musk support for the upcoming manufacturing facility at Berlin.

Price Action: Tesla shares traded 5.4% higher at $347.98 in the pre-market session Wednesday. Volkswagen OTC shares closed nearly 2.7% higher at $18.52 on Tuesday.

Photo courtesy: Kevauto via Wikimedia