2020 can definitely be said to be the year of Tesla, after the company’s shares managed to rise many times and thus it became the most expensive car manufacturer in the world. Thus, over the past 12 months, the traditional leaders in the industry have stayed out of the spotlight, especially when it comes to their performance on the stock market.
Now, however, the German giant Volkswagen is making a comeback and what. March will probably be the best month for the manufacturer in many years. Shares of the company reported their biggest growth in more than a decade, after last week its management announced its ambition to replace Tesla as the leader in the segment of electric vehicles.
Similar to the open communication with which Elon Musk is known, the CEO of the German company came out with a series of comments in which he revealed what is Volkswagen’s strategy to dominate the market of electric models.
As a result, the leader’s ordinary shares rose by 60% in the last 3 weeks alone and by 70% since the beginning of the year to around EUR 327. However, the preferred securities failed to report such an increase, so their unit price remains significantly lower – about 223 euros.
Volkswagen will set up six gigafactories and 18,000 charging points in Europe by the end of 2030.
The first two plants will be in Sweden and Germany
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Considering all the sales, Volkswagen is a real giant compared to Tesla. Last year, the German company sold more than 9 million cars, while for its American competitor this volume is half. In electric cars, Tesla still leads, but the difference between the two brands is melting fast in this segment.
Analysts say Volkswagen’s performance will shift the market again and bring more hope to other traditional carmakers who fear Tesla could push them out of the market with rapid growth.
And another company followed the example of the German giant. BMW has also announced a large-scale strategy to sell 2 million electric cars by 2023.
“The market is waking up to the transition to the business of old traditional manufacturers,” says Michael Dean of Bloomberg Intelligence. “Companies are becoming more worthy rivals to Tesla and are moving towards ending the monopoly on the premium electric car market,” he added.
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