Back to top

Image: Bigstock

Volkswagen Intends to Build 10M Electric Cars in MEB Platform

Read MoreHide Full Article

Volkswagen AG intends to manufacture 10 million electric cars (e-cars) by utilizing its new modular MEB platform, per Reuters. This is in sync with this German auto giant’s target of starting the global mass production of e-cars toward the end of 2022.

Per the news, this auto giant will build vehicles of 27 models, using the MEB — or modular electrification kit — at its plant in Zwickau, Germany, late 2019.

Similar to other German automakers, Volkswagen is aiming at the mass production of electric cars as its rival in the United States,Tesla, Inc. (TSLA - Free Report) is facing a lot of hardship to expedite the production of Model 3 — Tesla’s first car, targeting the mass market.

In fact, after the breakout of the three-year-ago diesel emissions scandal, which badly tarnished Volkswagen’s image, it set an ambitious plan to become a global leader in the electric vehicle market. The company plans to invest $7 billion in e-car production, which includes huge investment in its German plants at Braunschweig, Salzgitter and Kassel.

The company anticipates building 10 million Volkswagen group cars in the first wave only. However, it did not provide any time frame for that.

Over the past six months, shares of Volkswagenhave underperformed the industry it belongs to. The stock has declined 19%, wider than the industry’s decrease of 9.7%.


 

Zacks Rank & Key Picks

Both Volkswagen and Tesla currently carry a Zacks Rank #3 (Hold). Volkswagen and Tesla have an expected long-term growth rate of 5.9% and 35%, respectively.

A couple of better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have soared 65.1%.

Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past two years, shares of the company have surged 47.6%.

5 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>

Published in