A Wall Street analyst sees Volkswagen (VWAGY) overcoming Tesla (TSLA) in sales of electric cars as early as next year. Volkswagen’s shares jumped.
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In a report, analysts at Deutsche Bank estimated that VW’s electric car business alone could be worth $ 230 billion – more than everything VW is worth now. They raised their target price for Volkswagen shares listed in Europe by 46% to 270 euros.
The high note came when a VW-Chinese joint venture delivered its first electric crossover – the ID.4 Crozz – to 12 customers.
With ID.4 now selling across Europe, China and the U.S., Volkswagen could quickly overtake Tesla in EV sales, Deutsche Bank said on Monday. Meanwhile, VW itself hopes to almost match Tesla in sales of all-electric vehicles this year.
Volkswagen targets the mass market with ID.4. In China, Crozz costs the equivalent of $ 30,800 after subsidies – less than Tesla’s Model Y. It offers a range of 248-342 miles on a single charge.
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Volkswagen Stock
US listed stocks jumped 12.3% to 38.35 in Monday’s trading. Last week, Volkswagen shares reached their highest level since 2009 in aggressive plans for six new battery plants. Tesla’s shares jumped 5.8% on Monday amid Ark Invest’s new bullish price target of 3,000 by 2025. Tesla’s shares could be forming a new base, but it’s too early for a new hot spot. purchase.
Tesla’s Model Y was the best-selling electric car in China last month, surpassing the home-made Nio (NIO) and XPeng (XPEV). But Tesla now faces tougher competition, not only from Volkswagen’s ID.4, but also from the Mustang Mach-E electric crossover, which Ford (F) will do in China for local customers.
ID.4, which the German automaker plans to eventually produce in the United States, Europe and China, is the basis for its newly expanded “electrical offensive” against Tesla.
The electric SUV is also central to its bold strategy to oust Tesla as the global EV leader “by 2025 at the latest”, with simultaneous production at two plants in Europe, two in China and, eventually, one in the United States
For now, ID.4 is being imported from Europe to the USA. Deliveries to American customers began this month.
In 2025, Volkswagen expects ID.4 to make up for a third of its 1.5 million EV sales target that year. In the next five years, Volkswagen is investing 73 billion euros ($ 86 billion) in digital and EV technologies, above its previous plan to spend 60 billion euros.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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