Semiconductor manufacturers earlier in the coronavirus crisis shifted their output away from the hard-hit auto sector to serve other areas, like consumer electronics, Volkswagen said.
At the same time, Diess dropped his demand for an early extension of his contract, which runs until 2023, according to people close to the supervisory board.
The German automaker said on Wednesday that customers can order vehicles at a fixed price directly through the company website, phone app or from authorised dealers.
Herbert Diess cited the improving performance of computer chips needed in autonomous cars while developments in artificial intelligence are also speeding the process.
Volkswagen also said it was closely monitoring the situation, and had already started coordinating with its HQ and suppliers to take appropriate countermeasures.
The ID.4's driving range is less than Tesla's Model Y electric compact SUV, which offers more than 300 miles (483 km)between charges.
The ID.4 will initially come at a price of $39,995 and will be about $5,000 less expensive once the company begins building it in the United States, Volkswagen said.
Volkswagen is offering the ID.4 at a lower price than Tesla's Model Y and customers can further benefit from federal and state electric vehicle subsidies.
China has become a hot spot for trying out autonomous driving vehicles. Toyota-backed Pony.ai, Baidu Inc , Nissan-backed WeRide and Didi Chuxing are all testing autonomous cars.
Volkswagen also has ventures with state-owned China FAW Group Corp Ltd and SAIC Motor Corp Ltd.
The 3-0 ruling in June said Utah's Salt Lake County and Florida's Hillsborough County could seek "staggering" damages over updates made to polluting diesel vehicles after they were sold.
VW said in court papers on Thursday that the ruling, if upheld, could have sweeping ramifications for the US auto industry.
The multi-brand car and truck maker predicted a significant decline in full-year sales, even though it said it was seeing a gradual recovery globally as lockdowns eased.