Back to top
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Volkswagen Reduces Stakes in Northvolt, Signs Contract With Novonix
Volkswagen AG (VWAGY - Free Report) , the largest shareholder in Swedish battery maker Northvolt, has significantly reduced its 21% stake in Northvolt following the battery maker’s recent bankruptcy protection filing in the United States, per sources. Several major Northvolt shareholders have been reassessing or devaluing their stakes as the company has repeatedly missed production targets amid slower-than-expected electric vehicle (EV) demand in Europe.
Per sources, Volkswagen's writedowns occurred throughout this financial year. At the end of 2023, VWAGY reported the book value of its Northvolt holding at €693 million, nearly 25% lower than the prior year. This valuation dropped significantly throughout 2024. The writedowns would not affect Volkswagen's annual results, as adjustments to its Northvolt stake had been made before the Chapter 11 filing.
VWAGY expects a 5.6% operating profit margin and €2 billion in net cash flow from its automotive division in 2024. Volkswagen declined to comment on the writedowns but reiterated that it would not speculate on how Northvolt's bankruptcy filing might affect the company.
In separate news, Volkswagen’s battery subsidiary, PowerCo, has signed a five-year material supply agreement with graphite manufacturer Novonix. Per the deal, VWAGY will procure at least 32,000 tonnes of synthetic graphite material starting in 2027. PowerCo, established in 2022, plans to build six gigafactories by 2030, with a combined annual output of 240 GWh. Construction is underway at two sites, with the first, located in Germany, set to begin production in 2025 at an initial capacity of 40 GWh per year, with room for future expansion.
Volkswagen’s Zacks Rank & Key Picks
VWAGY currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Tesla, Inc. (TSLA - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved by 75 cents and 88 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 and 2025 have improved by 20 cents and 14 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 25.07% and 31.51%, respectively. EPS estimates for 2024 and 2025 have improved by 35 cents and 39 cents, respectively, in the past 30 days.