The Volkswagen stock explodes driven by electric propulsion
While Tesla shares have a lull, VolksWagen could be the forerunner of the renaissance of traditional auto brands. VW's common and preferred shares have continued to rise over the past few days.
The day before yesterday there was a monstrous gain of 30% of the value, followed by another exceptional day at 22%. Eventually VW begins to resemble Tesla as a stock, with sudden and extreme growth
this could just be the first of many bad awakenings for Musk: as companies invest in electric and market-appropriate solutions come out, they see a strong improvement in their quotation, while taking away space from Elon Musk's company, with which they enter into direct competition. Recall that names like Apple, BMW, Jaguar and Audi – just to name a few – are also entering the green arena.
"This may be driven in part by US retail investors jumping into the electric vehicle market," Louis Capital Markets trader Frederic Benizri told Bloomberg Wednesday. Guillermo Hernandez Sampere, head of trading at MPPM EK, sees an expansion similar to what Gamestop for a while: "GameStop was the model for deals like this – it was only a matter of time before someone copied it."
Recall, VW updated its earnings guidance yesterday and outlined plans to expand the company's electric vehicle offering through 2030, expecting to overtake Tesla as the champion of full electric vehicle sales. VW hosted its “Power Day” yesterday and revealed plans to build six “gigafactories” with a total capacity of 240 gigawatt hours per year.
“The company aims to achieve an operating margin of between 7% and 8% after 2021. VOW also confirmed that it is looking to finish the year on top and in a range of 5% – 6.5% in 2021. Greater profitability will be achieved through lower costs with savings of up to € 2 billion identified for 2023 compared to 2020, ”the company said yesterday, according to StreetInsider.
Chief Executive Herbert Diess told CNBC, “This period is probably the most crucial for the entire industry. Within the next 15 years we will see total industry turnover. Electric cars are taking the lead and so software really becomes the main driver of the industry “.
“Electric cars are already very, very competitive today and are becoming increasingly competitive over time. This gives us the certainty that this is the right way to move forward. Electric cars will actually further reduce the cost of individual mobility, ”he continued.
Tesla risks losing strong market share. It is no longer the object of investors' desire.
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The article The Volkswagen title explodes driven by electric propulsion comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-titolo-volkswagen-esplode-spinto-della-propulsione-elettrica/ on Wed, 17 Mar 2021 09:00:32 +0000.