Stock Price, News, and Information for Volkswagen AG (ADR) (VWAGY) from The Motley Fool.
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Is VW a wise investment right now?
Initiated by speculations that the German automaker will soon usurp Tesla’s (NASDAQ: TSLA) EV crown, Volkswagen’s (OTCMKTS: VWAGY) stock has enjoyed a fantastic 2021 thus far and is up around 60% YTD. VW declared their intention to switch to all-electric vehicles in Europe by 2033 back in July. Additionally, in response to President Joe Biden’s call for increased use of electric vehicles, the business plans “major modifications to its U.S. EV Program.
By pursuing ambitions to lower battery costs and open six gigafactories in Europe by 2030, VW is also seeking to match Tesla sales as early as next year and may even overtake the electric vehicle manufacturer by 2025.
Lofty plans for sure, and it appears that Tesla has a respectable rival in a “old world” automaker.
The ID.4 electric SUV from VW is now available for purchase in China, Europe, and the United States. On a single charge, it has a driving range of 248342 miles. Expectations have been raised even higher across the entire VW group thanks to plans announced by other VW subsidiaries like SEAT for a number of compact SUVs to hit the market by 2025.
As a result of the pressure surrounding VW, retail investors have flocked to the company, which has a constant share price of $32$33 at the moment.
When you look up VW stock, you’ll see that the firm has more than 20 ticker symbols, which can be perplexing. So, we divided it up.
What distinguishes VWAGY and Vwapy from one another?
Simply said, from a financial standpoint, the two sets of shares are nearly equal. Voting rights are attached to the relatively “overpriced” shares, VWAGY, but not to VWAPY. The spread between the two shares is what’s different. The spread (monthly) averaged $0.31 or 2.2% for the twelve months that ended in March 2020. The spread (daily) averaged $1.77 or 9.7% for the twelve months that ended in March 2021 (and $1.39 and 8.4% if March 2021 were excluded). The spread was $7.22 and a 26.3% spread as of March 29, 2021. And as of March 30, when I am writing this, the spread has increased to an absurd $9.65, or 34.2%!
I’m betting that this pendulum swings back even if pendulums (price gaps) do occasionally swing out.
Simple: Short VWAGY and purchase VWAPY. An arbitrageur might make returns above 20% if the shares revert to a more conventional spread, whether it was the spread from the previous year or the year before. I’m not forecasting when the spread will return to normal, but I’m betting (investing?) that it will.
Who is Tesla’s principal rival?
Elon Musk, a seasoned businessman, is the CEO of Tesla Inc. (TSLA), an American electric vehicle and powertrain designer, developer, manufacturer, and distributor. The business was established in 2003, and its main office is in Palo Alto, California. Tesla’s market value was $884.91 billion in August 2022.
Tesla announced in 2021 that it will begin producing its Cybertruck, an electric pickup truck with a 250-mile range on a single charge, in 2022. Additionally, it intends to begin manufacturing an electric semi-tractor truck.
In addition, Tesla works with other automakers to provide services, such as selling its battery technology. Tesla’s two main revenue streams, however, are automobile sales and development services. The majority of the earnings comes from the selling of automobiles.
After years of breakeven performance, Tesla has experienced significant growth. Tesla generated $1.1 billion in the second quarter of 2021, above Wall Street’s earnings projections (on a GAAP basis). The $638 million it brought in during the first quarter more than doubled as a result. Tesla’s revenue for Q2 of 2020 was under $100 million.
Tesla reported Q2 2021 earnings of $1.6 billion (adjusted, non-GAAP), up from Q2 2021 earnings of $1.1 billion. In the second quarter of 2020, it reported $451 million.
Key Takeaways
- However, additional rivals are now entering the market for luxury electric and self-driving cars.
- Ford and Honda are just two of the conventional automakers that Tesla has to contend with.
- Tesla remains the leader in luxury electric vehicles.
- Tesla has been successful by concentrating on high-end electric vehicles (EVs).
- Tesla’s key rivals include Nissan, Honda, Nio, Ford, and General Motors.
Why does Volkswagen have two stocks?
The global impact of the Volkswagen pollution crisis is growing. American investors and consumers are suing Volkswagen in large numbers right now.
Some of you might be familiar with Volkswagen as an automaker but not as a stock. After learning about the emission scandal, I imagine that many investors are eager to examine the stock prices and purchase it for the first time.
Volkswagen stock is traded on markets around the world. But Frankfurt, Germany, is its principal market. There are multiple ticker symbols for Volkswagen when searching for Volkswagen equities on the Frankfurt market. So what makes those various symbols different from one another?
Volkswagen’s ticker symbols resemble “VOW.DE.” The exchange where equities are traded is indicated in the right part. But we’ll ignore that for now. Each symbol’s differences are displayed on the left portion.
Ordinary shares are the ones with the “VOW” symbol. Ordinary shares entitle you to voting rights if you own them. The shares with the “VOW3 sign, on the other hand, are preferred shares. Preferred shares are those that provide their owners preference in a number of ways, including dividend payments, asset distribution during a liquidation, and more. However, preferred shares typically do not grant you any voting rights. In addition, if we contrast the current values of Volkswagen’s common stock (VOW) and preferred stock (VOW3), the common stock is currently more expensive.
Additionally, there are additional Volkswagen emblems, such as VOW4 and VOW5. Depository receipt with a 20% value of VOW is referred to as VOW4. After purchasing shares of a company to use as collateral, a financial institution issues depository receipts as securities. The 20% value of VOW3 is also included in VOW5, which is a depository receipt for VOW3. In other words, both VOW and VOW3 depository receipts are exchanged in the market.
It’s preferable to learn more about Volkswagen shares because it’s likely that there will be numerous pieces on Volkswagen in the media over the next few weeks.
Will Volkswagen’s stock increase?
The consensus price objective for Volkswagen AG among the 16 analysts who are providing 12-month price projections is 23.21, with a high estimate of 32.09 and a low estimate of 11.52. The median estimate reflects a gain of +27.15 percent over the most recent price of 18.25.
Analyst Recommendations
Two investing analysts were surveyed, and their current consensus is to buy Volkswagen AG stock. Since August, when it remained unchanged from a Buy rating, this rating has been stable. Mouse over the previous months for more information.
Why is the VW stock falling?
The company’s 2022 vision, which includes a crucial shift to electric vehicles, was clouded by the war Russia is waging in Ukraine, according to a warning made by Volkswagen on Tuesday.
The warning from Volkswagen (VWAGY) follows the German automaker’s announcement on Friday that sales of battery electric cars (BEVs) will nearly treble to 452,900 in 2021. However, that was considerably short of the approximately 1 million electric vehicles that Tesla (TSLA) sold last year as well as its goal of 500,000. The auto industry behemoth with its headquarters in Wolfsburg is on a mission to dethrone Tesla as the pioneer of electric transportation.
Tuesday, management cited a scarcity of cable harnesses from Ukraine as the reason why the firm had to stop producing important electric vehicles like the ID.3 and ID.4, among other things.
Volkswagen has demonstrated its resiliency over the years, and CEO Herbert Diess assured the media at a news conference in Wolfsburg that the company will handle the issue as well.
Diess expanded on a warning he had issued on Friday about the threat the conflict and supply chain bottlenecks posed to the company’s operations. “The crisis in Ukraine has called our current outlook into question,” he said. According to reports, 380 businesses have left Russia because of the conflict, but others are still there and still doing business. Nickel, which is frequently utilized in EV batteries, is mostly supplied by Russia.
Volkswagen is giving China, where it has a 16% market share and where EV sales increased by more than fourfold in 2021, a higher priority in the midst of the turbulence in Europe.
The company anticipates growing sales by 8%-13% and deliveries by 5%10% in 2022. In the second part of the year, it anticipates an improvement in the supply of semiconductors.
According to management, pricing for both internal combustion engine automobiles and electric vehicles would increase as a result of rising raw material costs. It issued a warning that commodities volatility might last into 2026.
In five years, where will the Volkswagen stock be?
Stock of Volkswagen AG?
Is it a good idea to trade “VLKAF” stock today? Our real-time forecasting system indicates that
Volkswagen AG may be a successful investment choice if you’re looking for companies with strong returns.
At 2022-09-05, the Volkswagen AG quote is equivalent to 183.450 USD. According to our projections, a long-term growth is anticipated,
2027-08-27 stock price forecast for “VLKAF” is 355.013 USD. The earnings after a five-year investment are
anticipated to be roughly +93.52%. Your $100 investment today might be worth up to $193.52 in 2027.
Is Volkswagen stock a good buy?
According to an analysis of Volkswagen’s historical stock price, the trend was downward and, as of 23 December, there were no indications that it will reverse.
An optimistic forecast for 2022 was supported by the consensus analyst sentiment and algorithm-based predictions from Wallet Investor.
Before purchasing Volkswagen shares, investors should conduct their own due diligence. None of these viewpoints need to be interpreted as a suggestion to buy stock in the business.
Why has Volkswagen stock gone down?
Since April of this year, the price of VOW3 stock has been declining as the company’s capacity to produce cars has been hampered by supply chain bottlenecks.
How high can Volkswagen stock go?
By the end of 2025, Volkswagen stock might cost 227.256 per share, according to forecasts made using an algorithm by Wallet Investor. These forecasts are derived from an evaluation of the current price trend. Up until then, a lot of factors could happen, which could have an impact on the performance of Volkswagen stock.
Volkswagen: Should I Buy or Sell?
Hold is the general consensus rating for Volkswagen. Based on 7 buy ratings, 3 hold ratings, and 2 sell ratings, the firm has an average rating score of 2.42.
Vwapy: Is it a wise investment?
The consensus price objective for Volkswagen AG among the 16 analysts who are providing 12-month price projections is 23.21, with a high estimate of 32.09 and a low estimate of 11.52. From the most recent price of 14.26, the median projection reflects a rise of +62.79%.