As the world is seeing more and more electrical vehicles on the road, the future of Audi is on the brink.

On Thursday, Audi CEO Markus Duesmann told a German business daily that Tesla's the leader in electrification, according to Automotive news.

"Currently, Tesla has larger batteries because their cars are built around the batteries. Tesla is two years ahead in terms of computing and software architecture, and in autonomous driving as well," he said.

The news came with no surprise given that Audi has only been pushing forward in electrification for the past five years, comparing to Tesla which has been working on battery-electric cars since 2003.

Range is the biggest problem that Audi is facing. So far, Tesla's Model S luxury sedan ups the EPA-rated range to as much as 402 miles, nearly double the range of Audi's best offering, E-Tron Sportback.