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Volkswagen Group CEO Herbert Diess is sending a message to Elon Musk: We are coming for Tesla.

While Tesla is paving the way in electric cars, VW is buying software companies and ramping up investments in sustainable vehicles and battery cells, Diess said Friday at the World Economic Forum in Davos, Switzerland.

"It's an open race," Diess said in an interview with Bloomberg TV. "We are quite optimistic that we still can keep the pace with Tesla and also at some stage probably overtake," he said.



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