It turns out VW isn't targetting the Tesla Model Y with the ID.4.
As VW's first electric SUV, you might assume the ID.4 is designed to rival other electrified crossovers on the market like the Tesla Model Y and Ford Mustang Mach-E. But you would be wrong. Instead, VW has the wider crossover market in its sights. In a document obtained by the VW ID Talk forum, VW's market research lists the ID.4's main competitors as the Toyota RAV4 and Honda CR-V, comparing the prices, dimensions, and equipment of all three crossovers.
Each model has similar dimensions, and while the VW ID.4 is more expensive than its conventional rivals, it's equipped with more luxuries and standard tech such as a heated steering wheel and seats, and wireless phone charging and app connection.
Starting at $39,995, the ID.4 costs around $10,000 less than the Model Y but is around $12,000 more expensive than the Toyota RAV4 and Honda CR-V.
While it's surprising that Volkswagen is not using the ID.4 to target the Model Y, statistics from reservation holders on the ID Talk forum reveal that not one reservation holder on the site has ever owned a Tesla model, supporting VW's research the ID.4 won't lure Tesla owners. Among the cars the ID.4 will be replacing for these reservation holders are the Volkswagen Jetta, Nissan Rogue, Honda CR-V, 2013 Toyota Prius, Chevrolet Volt, Volkswagen e-Golf, Volkswagen Atlas, and Mazda CX-5.
The majority of reservation holders have also never owned an electric car before. Rather than targeting Tesla, the ID.4 is positioned as an alternative to mass-market conventional crossovers to entice first-time EV buyers.
The strategy seems to be paying off, as demand for the ID.4 has been extremely high. With buyers flocking to reserve one after its debut, VW's reservation website couldn't cope with the demand. The ID.4 First Edition also sold out in less than 24 hours. Those who were lucky enough to place a reservation for the First Edition will receive delivery of the electric crossover later next year. Deliveries for the ID.4 Pro with RWD, which starts at $39,995, will start in Q1 2021, followed by the AWD ID.4 Pro later in 2021 starting at $43,695.