Volkswagen’s course at highest level in seven years due to electric offensive
Investors are rediscovering the Volkswagen share. Not only has it presented better-than-expected results for the 2020 corona year, it is also becoming increasingly clear that it is on track to rival Tesla as the largest producer of electric cars.
The Volkswagen share was experienced at the Frankfurt stock exchange
Tuesday is the largest daily increase since 2008. It was since before the diesel scandal in 2015 that the price was so high. With this, the second largest car manufacturer in the world crowns a solid rally: since November last year the share price has skyrocketed by almost 70 percent.
The direct reason for the price surge were the better-than-expected annual figures that the Volkswagen group announced on Tuesday. The parent company of VW, Audi, Porsche, Skoda, Seat and Lamborghini, among others, managed to stay in the black in the corona year 2020 and promises much more improvement this year.
For example, Volkswagen CEO Herbert Diess promises that his group will sell more than 1 million hybrid or fully electric cars this year. That is about 10 percent of the total annual volume. That million cars are roughly evenly split between plug-in hybrids and all-electric cars. Last year, Volkswagen sold 231,000 fully electric cars, this year that should be half a million.
With this, Diess reinforces its ambition to make Volkswagen the largest producer of electric cars in the world. He is still a bit behind on Tesla
, which sold nearly 510,000 fully electric cars last year. This year, Tesla CEO Elon Musk is counting on selling at least 1 million electric Teslas.
Diess is not yet satisfied with Volkswagen’s current stock price. He repeated his claim that Volkswagen is worth at least 200 billion euros. At Tuesday night’s exchange rate, the market value of Volkswagen amounted to 120 billion euros. By comparison, Tesla, which runs only a fraction of VW’s car production, was worth $ 675 billion ($ 567 billion) on Wall Street on Tuesday.
Volkswagen gave some extra details about its electric offensive on Monday. Over the next nine years, six new battery factories will have to be set up in Europe alone to meet the growing need for batteries for Volkswagen’s e-cars.
The company also revealed its plans to develop its own batteries. For cheap e-Volkswagens, it relies on LPF batteries, which do not use the expensive metals nickel and cobalt. That announcement gave the recycling group Umicore a blow.