According to a thorough assessment released this morning by the research firm Bloomberg Intelligence, Volkswagen electric vehicles will overtake Tesla for the next 18 months as the world’s top seller of EVs. Volkswagen is on course to surpass Tesla’s production output by 2024, according to the full BEV forecast report, although several legacy manufacturers will continue to struggle with sales through 2025.
We won’t bore you with their histories because Volkswagen and Tesla are both well-known automakers. The former has made more recent and aggressive attempts to embrace BEVs than other legacy automakers, whilst the latter has been entirely electric from the start.
Volkswagen may have had a small chip on its shoulder as a result of the emissions issue, but it appears to be working. In the fall of last year, we reported Volkswagen was accelerating EV deliveries and sales at an astounding rate, with YOY growth exceeding 100%.
As the number of Volkswagen models available increases along with the demand for BEVs, this trend has persisted beyond 2022. Volkswagen continues to look behind Tesla while making progress for the German automaker.
While wearing a crown adorned with emblems like a $686 billion market cap and hundreds of thousands of units manufactured each quarter, Tesla, on the other hand, continues to play a very public role as the darling of EV adoption. Despite several hiccups, Tesla has no intention of slowing down as new Gigafactories in Austin and Berlin get going.
According to Bloomberg Intelligence, Volkswagen will soon overtake the American manufacturer as the market leader in BEV sales as a result of Tesla’s increasing efforts.
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How is Volkswagen doing?
In 2021, Volkswagen resumed making money in the United States, as well as in Mexico and Canada. Their four primary SUVs accounted for 70% of sales (The Atlas Models, Tiguan, Taos, and ID. 4). Volkswagen claimed having a 26% market share of the electric vehicles sold in Europe during the first half of 2021.
Which automakers will remain in business?
By the end of the decade, according to Sandy Munro, a well-known YouTuber for his frank critiques of automobile manufacturers, there will only be three automakers left in existence in North America. They are Ford, Rivian, and Tesla. Let’s investigate this further.
In a video, Sandy Munro predicts the three automakers that will be around when the decade comes to a conclusion. He predicts that Tesla, Ford, and Rivian will be the top three automakers in North America.
A manufacturing specialist known for his occasionally scathing evaluations of electric vehicles from Tesla and other manufacturers claims that the Rivian R1T electric truck is “far underpriced” in an article from the Reuters website.
According to Sandy Munro, CEO of Michigan-based Muntro & Associates, which disassembles vehicles and offers automakers advice on how to improve them, the R1T might also benefit from some engineering and production tweaks to lower its manufacturing cost.
Sandy Munro is well recognized for his direct and thoughtful YouTube videos that discuss established auto manufacturers and the likelihood of their demise. The Rivian R1T, according to Sandy, offers “buckets of cost reduction possibilities,” which is not unusual for a brand-new car from a firm that is just starting to make cars. Munro estimates that it should sell for $100,000, significantly more than the $67,500 asking price.
One of the three businesses that Sandy Munro predicts will endure is Rivian. According to Lucid Motors CEO Peter Rawlinson, the Rivian R1T should cost at least $95,000 to be profitable. One mistake made by Rivian was hiking rates after receiving vehicle orders the previous year, which angered existing customers.
The only two businesses left, according to Sandy Munro, are Ford and Tesla. Future EV products will continue to be announced by traditional automakers. But for established automakers, the biggest issue is switching from ICE to EV production in all the existing facilities and infrastructure.
Will Volkswagen eventually stop producing cars?
According to CFO Arno Antlitz, Volkswagen will stop producing a number of combustion engine automobile models by the end of the decade. Antlitz said it intends to eliminate 60% of its gas- and diesel-powered models in Europe by 2030 but did not specify which models would be discontinued.
The news demonstrates how supply chain issues have sped up the switch by automakers from gas to electric vehicles. While chip shortages have forced the early retirement of some combustion engine car models and halted production for others, Volkswagen and its competitors are pressing ahead with ambitious plans to increase the production of electric vehicles (EVs).
Volkswagen still intends to invest $59 billion by 2026 to introduce new electric car lines and compete against EV industry behemoths like Tesla, despite cutting production overall. Volkswagen will cannibalize gas-powered vehicle factories and convert them into EV ones in order to accomplish these incongruous ambitions. According to Antlitz, “We are not increasing capacity; instead, we rework factories one at a time. The corporation has already switched the production lines at its German facilities in Zwickau and Emden from combustion engine vehicles to electric vehicles.
Who will surpass Tesla first?
DETROIT
According to the yearly “Car Wars” study, incumbent automakers like General Motors and Ford are predicted to surpass Tesla Inc., whose electric vehicle market share is forecast to decline from a stifling 70 percent now to just 11 percent by 2025 as a result of increased competition.
With the help of new products like the F-150 Lightning and the upcoming Chevrolet Silverado EV, John Murphy, a senior auto analyst at Bank of America Merrill Lynch, predicted that by 2025, GM and Ford would each hold about 15% of the EV market. This would be an increase of about 10% from where both automakers currently stand.
At an Automotive Press Association event held in this city, Murphy declared that “the domination Tesla’s had in the EV industry, particularly in the U.S., is done.” “In the next four years, it’s going to turn dramatically in the opposite direction.”
Volkswagen selling more EVs than Tesla?
VW already outsells Tesla in terms of EV sales in Europe, and according to the report’s authors, this trend will continue despite Tesla’s new facility opening in Germany. According to the survey, VW must increase its EV market share in China, where it presently holds a 3.5 percent market share, for this prediction to come true.
A critical analysis of Volkswagen stock:
With the following indicators, fundamental analysis of the Volkswagen share provides intriguing medium- and long-term signals:
- Divergent consensus: It is difficult to value this stock because of the wide disparity between analyst price targets for it.
- Weak growth predictions: Based on how sales are predicted to evolve, weak growth is predicted during the next few years.
- Launches that surpass expectations: According to past trends, the Volkswagen Group has a favorable surprise rate for its releases.
- Volkswagen pays out a respectable dividend, making it a desirable yield investment for investors.
- High price target: The average analyst price target for this company is quite different from the present price, indicating an intriguing upside potential.
- Strong financial position: The company exhibits a strong financial position with intriguing earnings multiples thanks to a high level of cash and net margin.
- Low valuation: It is estimated that Volkswagen’s enterprise value is 0.15 times sales. Therefore, based on its net book value and cash flow, the stock appears to be undervalued.
A technical analysis of Volkswagen stock:
Long-term signs from Volkswagen’s chart and technical analysis data are more bearish and include the following:
- The MACD is presently at 0.15 and is indicating a weak buy.
- The RSI is currently showing a strong sell signal at 43.231.
- The following technical support and resistance levels are at 132.64 and 108.28, respectively. The next technical support levels are at 180.02 and 203.04.
- With the exception of the MA200 simple and exponential average, which is sending a purchase signal, all simple and exponential moving averages are sending sell signals.
- While the long-term stochastic is generating an oversold signal, the short, medium, and long-term stochastics are sending sell signals.
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.
Who is Volkswagen’s principal rival?
Best Volkswagen Rivals Around the World
- One) Toyota.
- General Motors, second.
- 3) Ford.
- Renault Nissan (4).
- Hyundai (5).
- 6) Mercedes.
- 7) BMW.
- Cars 8) Chevrolet
Was Ford given a break?
Ford received alternative forms of financial support instead of requesting a government bailout. To safeguard its supply chain and dealer network, Ford supported the bailouts of GM and Chrysler.
Who purchases electric vehicles?
Middle-aged white men with a yearly income of over $100,000, a college degree or higher, and at least one other car in their family make up the largest segment of EV owners in 2019.
Is the Passat being slain by VW?
Volkswagen announced that it would discontinue the Passat sedan for the American market in July 2021. According to CarBuzz, towards the end of 2021, the carmaker stopped making the Passat Sedan for international markets. The Passat sedan will no longer be sold in international markets after the 2022 model year, similar to the U.S. market.
The Passat sedan sold in foreign nations is different from the Passat manufactured in America. The Passat is a larger vehicle that is built on an earlier platform in the US. Since 2014, the Passat has been sold with global specifications. Regardless matter the platform, the Passat sedan’s demise is imminent.
will discontinue producing gas-powered vehicles?
He mentioned that 17 other states have previously implemented California’s harsher tailpipe emission regulations after the Golden State did so.
With numerous states already taking action to accept the new standards, 15 of those have also backed its zero-emission vehicle requirements.
Unlike other states, California has the exclusive authority to establish pollution requirements that are more stringent than federal regulations. Through a waiver from the US Environmental Protection Agency, the Clear Air Act enables California to impose pollution rules for new cars. The EPA maintains that as long as the standards are identical, other states are free to adopt California’s rules.
By 2035, any automobile, pickup truck, minivan, SUV, or other passenger vehicle that emits greenhouse gases will be prohibited from sale in California under the new regulations. After the laws go into effect, drivers will be able to buy used gas-powered vehicles and continue to drive gas-powered vehicles purchased before the 2035 deadline.
Here is a list of the states that have taken action to enact legislation resembling California’s zero-emission car regulations.
The governor of Washington, Jay Inslee, declared this week that his state is “ready to implement California’s regulations by the end of this year” and dubbed California’s prohibition on new gasoline vehicles “a critical milestone in our battle against climate change.” Washington was previously obligated by the state legislature to adopt regulations that would apply California’s pollution limits. In their $17 billion transportation plan, state lawmakers also included a goalnot a mandateto phase out the sale of new gas-powered cars by 2030.
Oregon’s Department of Environmental Quality announced on Thursday that the state is also considering adopting California’s “landmark” law. The state is moving forward with a proposed rule that, according to the department, is “essential to help achieve greenhouse gas emission reduction targets across the state and result in improved air quality and public health outcomes.” Oregon’s proposal is similar to California’s Advanced Clean Cars II regulation. By 2035, the proposed rule will mandate the sale of only zero-emission new light-duty vehicles in the state. By 2035, the state had previously set a goal of having at least 90% of newly sales automobiles be zero-emission vehicles.