BMW’s CEO Takes Another Swipe at Tesla, This Time on Quality

(Bloomberg) -- For the second time this year, BMW AG’s chief took a public dig at Tesla Inc., singling out quality and reliability as issues that set the Germany luxury automaker apart from the electric car leader.

Chief Executive Officer Oliver Zipse’s latest swipe echoed one in February when he cast doubt on Tesla’s ability to retain its EV crown in the face of competition. Since then, demand has continued to boom and Tesla’s Model 3 was Europe’s top-seller in September. 

“Where we differ is our standard on quality and reliability,” Zipse said Wednesday at a Handelsblatt conference. “We have different aspirations on customer satisfaction.”

BMW unveiled two battery-powered models in recent weeks, the i4 sedan and iX SUV, and sales of plug-in hybrid and purely electric models nearly doubled to over 230,000 cars in the first nine months of the year year. That still pales in comparison to Tesla shipping 241,300 cars during the third quarter alone.

“Tesla isn’t quite part of the premium segment,” said Zipse. “They’re growing very strongly via price reductions. We wouldn’t do that since you’ve got to last the distance.”

Volkswagen AG is also yearning to close the gap with a plan to double sales of fully electric cars this year and add 50 EV models by 2030. 

The rapid-fire rollout of new EVs from rivals has yet to undercut Tesla. Last month, its deal to supply cars to Hertz Global Holdings Inc. boosted its valuation above $1 trillion for the first time. CEO Elon Musk then triggered a downward slide with a plan to sell 10% of his holding.

Rivian Automotive Inc. raised about $11.9 billion in this year’s biggest first-time share sale, adding to investor concerns about extreme rallies in electric-vehicle stocks.

©2021 Bloomberg L.P.