The equity markets responded very favorably to a series of articles a couple of weeks ago, outlining the Volkswagen Group EV strategy.  One is less concerned about Volkswagen and maintaining its margins than Tesla entering a cost war to maintain market share.  While Tesla is the incumbent in the EV sector, it is not the incumbent in the automotive space and any attempts to meet the competition with a price war is foolhardy for Tesla.  

Volkswagen in gaining immense economies of scale with its MEB component set.  Two Volkswagen vehicles, the ID.3 and ID.4, based on MEB are on sale today. Audi's Q4, based on the same MEB, will be introduced in the next few weeks and SEAT and Skoda have variants being released too.  Furthermore, Ford is licensing MEB for a commercial vehicle in the European market.  Meanwhile, Tesla has different manufacturing processes for its two most common products, the Model 3 and Model Y.