Volkswagen Group CEO, Herbert Diess has boldly stated in public that Volkswagen will probably overtake Tesla in the EV race, Automotive News Europe reports. In an interview with Bloomberg TV, Diess said: “It’s an open race. We are quite optimistic that we still can keep the pace with Tesla and also at some stage probably overtake.”

This comes after Tesla’s market value surpassed Volkswagen’s for the first time recently, despite selling a fraction of the cars Volkswagen produces and before recording an annual profit. To speed things up, Volkswagen is buying up software companies and ramping up investments in sustainable vehicles and battery cells, Diess said at the World Economic Forum in Davos, Switzerland.

Part of the urgency stems from Tesla’s plan to establish a manufacturing facility near Berlin, right in the heart of Germany’s automotive industry. The Berlin Gigafactory will be an all-encompassing facility that will build batteries, powertrains and vehicles, with the Model Y set to be first model to roll off the assembly line, which will be followed by the Model 3.

With that, Diess urged his top managers to speed up overhaul efforts to make the company more “agile,” or risk being pushed aside. “The company which adopts fastest and is most innovative but also which has enough scale in the new world will make the race,” he said. VW has already begun building its first mass-market EV, the ID.3 (which rivals the Tesla Model 3), in Germany.

Besides Tesla, Diess is also concerned about US tariffs on European automakers, after president Donald Trump stated that he’s still not happy with Europe during a dinner in Davos recently. “It’s very difficult to read president Trump, and we are doing what we can to avoid tariffs. 2020 for the auto industry will be a very difficult year, but we’re doing the right things to be competitive.”