Volkswagen Group aiming to beat Tesla's EV sales by 2025

Volkswagen Group CEO Herbert Diess has put aside his ongoing praise for Tesla to instead fire a warning shot at the electric vehicle manufacturer, claiming his company can outsell the pioneer by 2025.

In an interview with CNBC's "Squawk Box Europe" program, Diess acknowledged Tesla was still the market leader for electric vehicles, but said the Volkswagen Group's brands could out-sell the California-based carmaker by the middle of the decade.

“Tesla currently is in the lead when it comes to EVs, probably also it is the most digital car company already and has some advantages,” said Diess. “We are still aiming at keeping up, and probably overtaking, [it] by 2025 when it comes to sales.”

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The Tesla Model 3 is currently the world's most popular EV, accounting for a large portion of the manufacturer's sales

To the end of March, the Volkswagen Group had shifted 99,100 EVs to customers worldwide – however, Tesla manage to deliver 310,048 units in the same period, more than three times the total of its German rival.

Supply chain issues have clouded the potential of many manufacturers, something which has impacted both Volkswagen and Tesla due to the high demands each carmaker faces.

While Diess knows Tesla is stepping up its production across the United States, China and now Europe, he believes once Volkswagen picks up the momentum it could challenge its rival soon.

“I think for Tesla, also ramping up now will probably be a bit more challenging. It is opening up new plants and we are trying to keep up speed. We think in the second half of the year, we are going to create some momentum."

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Porsche's Taycan was the VW Group's best-selling EV in Australia last year

Diess has openly praised Tesla founder Elon Musk in the past, even including the controversial CEO in a top-level Volkswagen meeting as a guest speaker last year – leading the Volkswagen board to question Diess's role as the Group's boss for his troubles.

It's important to note while Tesla can only trade as itself, the Volkswagen Group has fully-electric vehicles in each of its major automotive brands – Volkswagen, Audi, Skoda, Cupra and Porsche.

So far only Audi and Porsche offer full-EVs in Australia, however Cupra's upcoming launch in the second half of the year will herald the debut of the Volkswagen Group's electric and accessible MEB plaform locally, underpinning the Born hatchback.

Last year, Tesla sold 12,094 units of its segment-leading Model 3 in Australia, while Audi and Porsche managed a combined total of 439 with their up-market E-Tron (108) and Taycan (531) respectively.