Shares in this article
?? Tesla faces competition as the market leader
?? VW with ambitious Electric car-Concept
?? VW is already the winner at the 2021 stock exchangeNo vehicle manufacturer sells more electric cars than the US company Tesla. But market leadership could crumble in the coming years, as more and more industry representatives want a part of the EV cake. While it is primarily domestic startups in China that are increasing the pressure on Tesla, there is also competition from one side that many observers have already written off: The traditional car manufacturers who had sat out and slept through the trend towards electric cars for years are now pushing with sophisticated ones EV strategies in Tesla’s business. First and foremost, it is the German carmaker Volkswagen that could outshine Tesla in just a few years with its electric car offensive.
Will more vehicles be sold by 2025?
Experts at UBS estimate that the Wolfsburg-based company could already sell more electric vehicles than Tesla by 2025. In the coming year, VW could catch up with Tesla, both of which should then each bring 1.2 million EVs to the people, the analysts recently wrote. The experts also refer to the triumphant advance of the Germans in Europe, where VW has already taken the top position in terms of sold electric vehicles.
There is already a winner on the stock exchange in 2021
VW has already overtaken the Americans on the stock market – at least if you look at the share price development since the start of the year. The VW share has risen 48.5 percent since the beginning of January (market close on March 23), while the share of the electric car pioneer Tesla fell by around six percent in the same period. However, over the past twelve months, the Tesla share is still clearly ahead of the game with a plus of 555.60 percent compared to a 145.4 price increase at VW.
Excellent growth prospects for VW
Nevertheless, the latest developments show a tendency: For many investors, Tesla’s upside potential seems to be exhausted or has already been significantly exceeded, while Volkswagen is apparently still rated positively on the market. This could also be related to the fact that VW has not yet fully developed its potential in the EV segment. The Wolfsburg-based company has its eye on the mass market and with a much broader product range and numerous subsidiary brands in the group, the prospects are good that VW will achieve its ambitious goals. Volkswagen has invested billions in the electric car segment – with considerable success: The registration numbers of electrically powered Volkswagen vehicles have increased significantly, even if they are still negligibly small compared to VW cars with conventional or diesel drives. But precisely this fact also offers opportunities, if only some of the VW customers who rely on brands from the Wolfsburg car universe switch to electric vehicles, Tesla should feel the breath of VW on their necks in the near future.
This year alone, five VW brands are to bring a total of ten new e-models onto the market, and at the same time the company plans to sell 450,000 electric vehicles from the Volkswagen universe – around twice as many as before. The goal seems ambitious, but for a mass manufacturer like VW, which is broadly positioned worldwide and has experience in the volume market, this is probably only a small challenge.
More catching up to do with software
It could also be more difficult to catch up with Tesla in terms of software in the short term. Because here the Americans have a bigger lead, while VW is still working on developing its own software. The expenses for this are likely to be enormous, but Volkswagen is financially solid. A “software-oriented mobility company” should become VW, company boss Herbert Diess recently announced as a goal. Until this is achieved, Tesla will probably not have stopped when it comes to software development, after all, this is one of the main disciplines of the Musk Group.
Musk vs. Diess
Both companies have corporate leaders who could not approach and convey their goals more differently. Elon Musk is a beam figure that is inextricably linked with the Tesla Group. He embodies the essence of the electric car manufacturer like no other and has decisively shaped the company in recent years. Musk is celebrated by many followers like a pop star who primarily spreads his vision via his favorite platform, Twitter.
VW boss Herbert Diess is also active on Twitter, but presents himself there completely differently than his counterpart Musk. He dispenses with memes and instead shows relatively sober updates about the VW group, while Elon Musk declares himself technoking on Twitter and causes a stir with cryptic tweets about listed companies or crypto currencies.
The two company directors – Diess, 62 years old and Musk, 49 years old – could hardly be more different and seem to belong to different generations of managers. Nevertheless, both lead the fate of their company with self-confidence and goal. Both seem to maintain a friendly relationship, in September last year the Tesla boss met the VW manager in Braunschweig and had him show him the ID.3 and ID.4. You hardly hear any criticism of the other; mutual appreciation always seems to shape the relationship.
Whether Tesla can continue to see the Auto-Dino in the rearview mirror and keep it at a distance will depend in particular on whether Volkswagen can implement its ambitious goals and whether Tesla, for its part, finds a way to further differentiate itself in the software sector, because the Americans are likely to be in the volume market have little to oppose the numerous VW factories around the world. “If Diess continues like this, his appointment as techno emperor may not be far off,” says Chris Bryant of Bloomberg, summarizing the current situation.
Analysts are bullish on Volkswagen; of the 20 analysts listed on FactSet, only one assigns a sell rating and six experts hold ratings. At EUR 235.35, the average target price is well below the current price level.
At Tesla, the analyst estimates are meanwhile significantly more mixed, the average recommendation of the experts is “Hold”, but the target price of 652.40 US dollars is slightly above the current share price (649.31 US dollars on March 18, 2020).
Finanzen.net editorial team
More news about Volkswagen (VW) AG Vz.
Image Sources: Bocman1973 / Shutterstock.com, Scott Olson / Getty Images
[ source link ]
Market leadership danger Technoking Elon Musk Techno Emperor Herbert Diess Tesla overtake rank message