First of all, Elon stated what others have proposed (VW should commit to cleaner vehicles for redemption):

"If I was taking over VW, I'd go the other way and aim to be a leader [in clean vehicles]."

"Maybe the path to redemption is towards clean vehicles."

The Tesla CEO believe that companies that do not switch to electric cars over time will eventually go out of business, so for VW this could be the time to go electric.

"All car companies will go electric eventually. Any car company that doesn't go electric will be out of business."