VW Stock Revs Higher, Sparked By CEO’s Boast to Grab ‘Pole Position’ from Tesla in EV Market

Volkswagen automobile emblem
Jonathan Weiss / Shutterstock.com

Shares of Volkswagen AG climbed about 9% in intraday trading Wednesday as the iconic German carmaker continued to get a boost from its ambitious plan to cut into Tesla’s lead in the global electric vehicle market.

See: The Most Reliable Car Brands on the Road
Find: The Bestselling Cars to Start 2021

As reported by Business Insider, VW said during its first “Power Day” on Monday that it would build six electric vehicle battery factories across Europe and produce mostly electric vehicles by 2030. The company made no secret of its desire to roar past Tesla as the world’s top manufacturer of electric cars.

“Our goal is to secure a pole position,” Volkswagen CEO Herbert Diess said.

That message hit the right note with investors. VW’s stock price soared to about 227 euros on Wednesday after starting the day at 208 euros. Shares are up 19% so far this week and have risen by more than half since the beginning of the year.

More From Your Money

VW also used Power Day to discuss its plans to significantly lower battery production costs – which should lead to cheaper EV retail prices – and said it would put money into building an EV software infrastructure to be used across all of its brands. 

An article on Yahoo Finance noted that Diess has borrowed from Tesla CEO Elon Musk’s playbook by being active on social media to get Volkswagen’s message across, and by orchestrating high-profile events to grab the attention of investors.

See: 50 Most Environmentally Friendly and Affordable Vehicles
Find: 5 Questions to Ask Before Buying an Electric Vehicle

In a Wednesday note, RBC Capital Markets analyst Tom Narayan said VW’s Power Day “was a watershed event in the company’s history.” Narayan raised his price target on the stock by about one-third, adding that VW’s battery-electric vehicles “should enable shares to re-rate higher given improved profitability.”

More From GOBankingRates

About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte MagazineStreet & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, will be published in 2021 by Atmosphere Press.

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.