VW achieves incredible success in the stock market reminiscent of Tesla and its EV strategy.
Volkswagen has long been considered a blue-chip stock, although around 2015 it struggled a bit due to the Dieselgate scandal.
It has always been one of the largest and most valuable automakers, lagging just behind Toyota until Tesla surpassed them all.
Some other companies, such as GM and Ford, have achieved success in the stock market after accelerating their respective EV plans.
Now it’s Volkswagen’s turn, with the share growing by more than 100% over the past six months, and most of the growth over the past month alone:
Most of the increase comes after VW held its ‘Power Day’, which was compared to Tesla’s ‘Battery Day’ and the announcement of serious investments in battery production.
The stock is up 25% today, which is a big swing for a company like VW.
Products like the VW ID.3 and ID.4 were also well received, but people want to see book parts. Fortunately, VW is leading the way and it looks like this is starting to happen this year.
VW also surprised Korean battery manufacturers LG and SK this week by informing them that they will continue to use their own batteries, a strategy developed by Tesla.
The decision of the second largest carmaker in the world to move most of its cars to another battery cell in two years was a shock to LG Energy Solution and SK Innovation, three people who knew the situation told Reuters said.
Electrek’s Take
Full disclosure: Both Seth, Electrekpublisher, and I’m investors in Volkswagen.
We think VW is going to be a winner in the electric transition through heavy investments that came relatively early to the Dieselgate mess and the leadership of Herbert Diess.
I often say that if car manufacturers want a successful EV strategy, they simply need to copy Tesla.
By that I mean to act as if you do not have a legacy of selling petrol to conserve. This is hard to do when most of your assets are related to it, but I see that VW is willing to invest quickly in converting entire factories to produce EVs instead of ICE cars.
Now, with their battery strategy also resembling Teslas’s, I think they’m in a great position to become one of the major winners of the electric transition.
What do you think? Let us know in the comments below.
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