https://qz.com/1460673/volkswagen-will-make-50-million-electric-cars/
"VW understands that, and aims to take the wind out of Tesla’s sails (and sales) by offering its entry-level EV for less than €20,000 ($23,000)"
At the moment, an EV battery pack costs a lot of money. None are at the $100 / kWh that is predicted to be required to make cars cheap. Tesla are thought to be at that level for the cells, but not the whole assembled pack. I have seen guesstamates that put other manufacturers at nearer $170 to $200 / kWh on the assembled pack.
If VW are going to produce a reasonable range electric car it will need a reasonable sized pack - lets guess 65 kWh (similar to the Nero, Kona, Tesla Model 3 and new Leaf). If they somehow manage to jump straight in and get $100 / kWh that would be $6k for the battery, leaving $16.5k for the rest of the car. That is easily doable. However, if the battery costs are $170 / kWh that would put the pack at over $11k - almost half the cost of the car.
I do hope that VW do what they say - really I do. The thing to note was the announcement had no timescales - and the only number I have seen quoted from it was the car price. Add to that in the last 6 months there have been several announcements of new EV cars equally short of detail and at least one major executive stating that they are putting full resourcing to new, cleaner Diesel technology and I'm afraid I can't take them very seriously on EVs. (Yes, I do know they do an electric Golf, I also know that when I went in the dealership to ask about it no one there knew much about it and the only statement I got was that there was about an 18 month wait)