VW adds electric-car plants in China that will overtake Tesla Unlisted Video

In about a year, Volkswagen Group may catch up to Tesla's capacity to make electric cars.

VW said Tuesday it is building two plants in China to produce a total of 600,000 vehicles on its dedicated battery-car platform, MEB.

VW has little time to lose after Tesla resolved manufacturing problems in Fremont and its battery factory near Reno, Nevada, which may start also building Model Y crossovers.

While Model 3 sedan deliveries tailed off in the first quarter following a strong second half of 2018, CEO Elon Musk has dismissed concerns about demand and stuck to a forecast for as many as 400,000 vehicle deliveries this year.