VW (VWAGY) leaps forward in the TSLA-type race in the stock market due to its EV strategy
VW is having incredible success in the stock market reminiscent of Tesla and its EV strategy.
For a long time, Volkswagen was seen as a blue chip stock, although it went through significant hardships around 2015 in the wake of the Dieselgate scandal.
It has always been one of the most important and valuable car makers, behind Toyota until Tesla surpassed everyone else.
Some other companies, like GM and Ford, have started to have some success in the stock market after announcing an acceleration of their respective EV plans.
Now it’s Volkswagen’s turn, with stock having grown by more than 100% in the past six months, with most of that growth occurring in the past month alone:
The bulk of the increase comes after VW held its “Power Day,” which has been likened to Tesla’s “Battery Day,” and the announcement of serious investment in the production of battery cells.
The stock is up 25% today alone, which is a huge swing for a company like VW.
Products like the VW ID.3 and ID.4 have also been well received, but people want to see the volumes. Luckily VW is running and it looks like it’s starting to happen this year.
VW also surprised Korean battery makers LG and SK this week by informing them that they would use their own batteries in the future, a strategy pioneered by Tesla.
The decision by the world’s second-largest automaker to move the bulk of its cars to a different battery cell within two years has come as a shock to LG Energy Solution and SK Innovation, three people with knowledge of the situation told Reuters.
Full Disclosure: The Two Seth, Electrekthe publisher of the company, and I am an investor in Volkswagen.
We believe that VW will emerge victorious from the electric transition thanks to heavy investments made relatively soon after the Dieselgate mess and the management of Herbert Diess.
I often say that if automakers want a successful EV strategy, they just have to copy Tesla.
By that I mean acting like you don’t have a legacy of selling gasoline to keep. It’s a tough thing to do when most of your assets are attached to it, but I have seen VW’s willingness to invest quickly in converting entire factories to produce electric vehicles instead of ICE cars.
Now with their battery strategy also resembling Tesla’s, I think they are well positioned to become one of the main winners in the electric transition.
What do you think? Let us know in the comment section below.
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