The VW brand sells the electric ID4 in the U.S. and by mid-decade is expected to add the ID Buzz Microbus and the ID Aero sedan.
Tesla, meanwhile, plans to continue producing out the hot-selling Model 3 sedan and Model Y crossover and says it expects 50 percent average annual volume growth. Its global production should get a boost when new plants in Germany and Texas come online, potentially this year.
The California company will attempt to break in to the popular -- and profitable -- U.S. pickup market with the unique-looking Cybertruck, launching late next year, and could further expand its portfolio to include an inexpensive compact vehicle and a van.
If there was any doubt about VW's ambitions, it was settled when Diess joined Twitter early this year and used his first tweet to call out Tesla CEO and social media aficionado Elon Musk.
"Hello, @Twitter!" he wrote. "I'm here to make an impact with @VWGroup, especially on political issues. And, of course, to get some of your market shares, @elonmusk -- after all, our ID.3 and e-tron have won the first markets in Europe. Looking forward to productive discussions!"