"Anything Tesla can do, we can surpass," VW brand boss Herbert Diess said during a press conference at Volkswagen's Wolfsburg, Germany, headquarters. Diess said VW will achieve the same success in the volume market as Tesla has in the premium market. The high cost of the Model S and Model X is one of the factors that has kept Tesla sales relatively low, but the company hopes to address that with its $35,000 Model 3, which is expected to start production later this year.