Car industry has given us more intriguing news. The stock price of the German auto concern Volkswagen AG is setting up new records. The quotations haven't reached such levels since five years ago. Isn't it curious?
How high did they grow?
On March 3rd, the stocks of Volkswagen AG (DE: VOWG) grew by 5.31% from 197.9 to 208.4 USD per stock. It is worth noting that they have never been above 200 USD since July 2015, i.e. 67 months ago. It's amazing, indeed!
On March 4th, the quotations kept on growing and reached 216 USD, having increased by 3.65% overnight. The market capitalization of the carmaker amounted to 108.28 billion USD. Since the beginning of the year, the stock price of Volkswagen has risen by 27% from 170.1 to 216 USD.
What provoked the growth of VAG?
Bloomberg explains tge growth of Volkswagen stock price by the efforts of UBS Group AG. They say that the largest Swiss holding has carried out a thorough research of ID.3, a new model of electric cars by the German concern from the point of its financial perspectives and general market viability.
The analysts concluded that the platform on which ID.3 had been created can become a decent rival of Tesla. Experts note that the German platform has the most energy capacity and efficacy in its class.
In UBS Group AG, the cars by Elon Musk's company were compared to Apple products, while the new VW car — with Samsung goods. Being confident of the high competing ability of this platform, the experts of the financial conglomerate managed to raise the price of Volkswagen stocks to 300 USD.
What plans does Volkswagen have?
ID.3 will be produced on European conveyor belts and will be meant for EU consumers. ID.4 on the same platform will be produced in the USA and China as well.
The colossal carmaker also plans to make electric cars of other brands — Skoda, Audi, Porsche, and Seat. Moreover, Ford electric cars will also be assembled on this platform: the American company has already contracted with Volkswagen.
The mabagement of the German concern plans to increase sales volume of electric cars by 100% in 2021, producing 700,000 cars. Tesla's plan is, remember, 750,000 cars.
The new representative of Volkswagen took quite a hindered start. Firstly, COVID-19 made its corrections to production plans. At a certain point, some analysts started doubting whether the German were able to create a high-quality electric cars and compete with Tesla.
However, the platform underlying the electric car has been already evaluated by UBS Group AG experts as having the most electric capacity and efficacy in its class. Such a conclusion made the stocks of Volkswagen AG grow to the high of 216 USD per stock.
I'm sure investors are happy with this year's forecasts: the concern promises to organiza the production of electrc cars under various brands in Germany, China, and the USA, as well as double their sales volume.
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