According to Deutsche Bank, Volkswagen AG should keep getting more credit for its battery-powered car strategy that could lead the company to surpass Tesla Inc. in electric-vehicle sales as soon as next year.
If the market were to apply multiples similar to Tesla and Nio Inc. to VW’s battery-electric vehicle business, it would be worth about 195 billion euros ($230 billion), more than all of the company is worth now, analysts led by Tim Rokossa wrote in a report. They lifted their price target for VW shares by 46% to 270 euros.
VW’s common stock surged as much as 14% and its preference shares rose as much as 8.4% in Frankfurt, while its American depositary receipts climbed in New York. Last week, the German-traded securities climbed 22% and 16%, respectively.
A good chance has been seen in VW’s EV deliveries surpass Tesla’s in short order as its ID.4 compact SUV is rolled out globally. Executives for the company’s Spanish brand Seat said Monday they plan to launch an EV for urban areas in 2025 costing between 20,000 euros and 25,000 euros.
VW plans to transform Seat’s factory outside Barcelona into an EV hub with the goal of producing more than 500,000 vehicles there per year, equal to Tesla’s global deliveries in 2020. The truck unit Traton SE is also getting into the mix. It will boost investments in electric technology to 1.6 billion euros by 2025 from 1 billion euros previously and scale back spending on combustion engines.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
