See an analyst on Wall Street Volkswagen (VWAGY) surpassed Tesla (TSLA) in sales of electric cars as soon as next year. Volkswagen share jumped.
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In a report, analysts at Deutsche Bank estimate that VW’s electric car business alone could be worth $ 230 billion – more than all VW is worth now. They increased their price target for the Volkswagen-listed Volkswagen share by 46% to 270 euros.
The positive note came when a VW-Chinese joint venture delivered its first electric crossover – the ID.4 Crozz – to 12 customers.
With the ID.4 now sold in Europe, China and the US, Volkswagen Tesla could quickly overtake EV sales, Deutsche Bank said on Monday. Meanwhile, VW itself expects that Tesla will roughly match the sales of electric vehicles this year.
Volkswagen targets the mass market with the ID.4. In China, the Crozz costs $ 30,800 after subsidies – less than Tesla’s Model Y. It offers a driving distance of 248-342 miles for a single charge.
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Volkswagen Stock
US equities rose 12.3% to 38.35 in stock market trading. Last week, Volkswagen shares reached the highest level since 2009 with aggressive plans for six new battery factories. Tesla shares rose 5.8% on Monday amid a bearish new Ark Invest price target of 3,000 by 2025. Tesla shares may form a new base, but it’s too early for a new one point of sale.
Tesla’s Model Y was the top-selling electric car in China last month, bought at home Nine (NIO) en XPeng (XPEV). But Tesla is now facing more stiff competition, not only from Volkswagen’s ID.4, but also from the Mustang Mach-E electric crossover, which Ford (F) will make in China for local customers.
The ID.4, which the German car giant plans to eventually manufacture in the US, Europe and China, is at the heart of its recently expanded “electric offensive” against Tesla.
The electric sport utility vehicle is also at the heart of its daring strategy to oust Tesla “by 2025” as the global EV leader, with simultaneous production at two factories in Europe, two in China and eventually one in the US
For now, ID.4 is being imported from Europe into the US. Deliveries to U.S. customers began this month.
By 2025, Volkswagen expects the ID.4 to be a third of its target for 1.5 million EV sales in that year. Over the next five years, Volkswagen will invest 73 billion euros (86 billion dollars) in digital and EV technologies, compared to its previous plan to spend 60 billion euros.
Find Aparna Narayanan on Twitter @IBD_Aparna.
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