VW is having incredible success in the stock market that resembles Tesla and its EV strategy.
For a long time, Volkswagen was considered a first-rate action, although it went through some significant struggles around 2015 after the Dieselgate scandal.
It has always been one of the largest and most valuable automakers, trailing only Toyota until Tesla overtook everyone.
Some other companies, such as GM and Ford, have started to have some success in the stock market after announcing the acceleration of their respective EV plans.
Now it’s Volkswagen’s turn, with the stock growing more than 100% in the last six months, and most of that growth occurring only in the last month:
Most of the increase comes after VW held its “Energy Day”, which was compared to Tesla’s “Battery Day”, and the announcement of serious investments in the production of battery cells.
Today alone, shares have risen 25%, which is a big fluctuation for a company like VW.
Products like the VW ID.3 and ID.4 were also well received, but people want to see the volumes. Fortunately, VW is running 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 would be using their own batteries in the future, a strategy initiated by Tesla.
The decision by the world’s second largest automaker to move most of its cars to a different battery cell in two years came as a shock to LG Energy Solution and SK Innovation, three people with knowledge of the situation told Reuters.
Electrek’s Take
Full disclosure: both Seth, Electrekand I are Volkswagen investors.
We believe that VW will win in the electrical transition through heavy investments that occurred relatively early after the Dieselgate mess and the leadership of Herbert Diess.
I often say that if automakers want a successful EV strategy, they simply need to copy the Tesla.
By that, I mean that you don’t have a legacy of selling gasoline to preserve. It is a difficult thing to do when most of its assets are linked to this, but I saw VW’s willingness to invest quickly in converting entire factories to produce EVs instead of ICE cars.
Now, with their battery strategy also similar to that of Tesla, I think they are in a great position to become one of the main winners of the electrical transition.
What do you think? Let us know in the comments section below.
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