In its bid to shift to electric vehicles, Volkswagen AG (VLKAY - Free Report) is vehemently taking a slew of measures. This move is not only an indication of the company throwing a challenge to Tesla, Inc. (TSLA - Free Report) , the frontrunner in this area, but also its plans of reorienting its strategies in line with the changing dynamics of the auto sector.
The German auto major intends to invest more than 20 billion euros ($24 billion) in zero-emission vehicles by 2030 to create mass market. The company plans to offer 80 new electric cars across its different groups by 2025, up from its earlier goal of 30. In fact, the company intends to roll out the electric version of each of its 300 group models by 2030.
Notably, till Volkswagen admitted to cheating on U.S. diesel emissions tests around two years ago, it did not show much interest in electric vehicles and self-driving technology. However, the massive transformation that is taking place in the industry has prompted the company to follow suit.
In the last three months, shares of Volkswagen have underperformed the industry it belongs to. The company’s shares have increased 4.6%, whereas the industry grew 7.3%.
Volkswagen currently carries a Zacks Rank #2 (Buy), whereas Tesla has a Zacks Rank #3 (Hold).
A few other top-ranked automobile stocks are Toyota Motor Corporation (TM - Free Report) , and Daimler AG (DDAIF - Free Report) . While Toyota sports a Zacks Rank #1 (Strong Buy), Daimler carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has a long-term growth rate of 7%.
Daimler has an expected long-term earnings growth rate of 2.8%
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