Volkswagen reports that its EVs are turning a profit sooner than expected due to high demand.

• For 2022, several VW Group electric models, including the Porsche Taycan, are already sold out.
• VW's EVs will reach profit parity with its internal-combustion models sooner than expected due to high demand and assistance from Ford.
• EVs have been a profitable venture for Volkswagen, as they are currently the leading seller of EVs in Europe and ranked second in the U.S. behind Tesla.

Porsche announced on Tuesday that several of its battery-electric models, including the Taycan, are already sold out for 2022 due to high consumer demand. This is helping the company's electric-car effort become as profitable as its internal-combustion lineup more quickly than expected.

Since several years, Volkswagen has been working on a plan to increase the production of electric vehicles (EVs) and aims to have them account for half of its global production by 2030. Although the plan is not expected to reach its full potential until the middle of this decade, it is already showing results. In Europe, Volkswagen was the leading seller of EVs, with about 25% of the market. In the U.S., it was second behind Tesla, with about 7.5% share last year.

Despite having a small market share in China's EV industry, Volkswagen's growth in the sector is rapid. The company's EV deliveries in the country increased by four times last year to almost 93,000 units, and VW anticipates a further doubling of this total in 2022.

During a call ahead of the company's annual meeting on Tuesday, CFO Arno Antlitz informed reporters that they are seeing better scale, margins, and high customer demand. Originally, the company believed it would take two to three years to achieve profit parity between ICE and battery-electric vehicles.

Ford and VW have announced that they will produce twice as many electric Fords as originally planned, with a total of about 1.2 million vehicles over six years starting in 2023. This is part of a "better scale" that includes a rival's contribution.

Since 2019, Ford and Volkswagen have been working together on electric vehicles, self-driving technology, and other major projects.

VW announced that its next-generation EV platform, including a new VW-brand electric sedan called Trinity, is expected to launch in 2026.

In Wolfsburg, Germany, a new advanced factory will be constructed next to VW's headquarters campus to manufacture the Trinity sedan using advanced production techniques. This facility will serve as a model for the global conversion of VW plants to electric vehicle production.

The company unveiled its ID. Buzz electric microbus last week.

VW is expanding its global charging network by increasing the number of high-speed charging points in the U.S., China, and Europe. The company currently has about 10,000 charging points and plans to increase that total to about 45,000 by 2025. Of those, about 10,000 will be in the U.S., operated under the Electrify America brand.

VW anticipates a 5% to 10% increase in overall deliveries, including internal combustion models, in 2022. However, CEO Herbert Diess acknowledged that Russia's invasion of Ukraine may cause the company to adjust its guidance. In response to war-related supply-chain disruptions, VW is relocating some of its production to North America and China.