Volkswagen AG (VWAGY - Free Report) announced that it will reach its target of 1 million electric cars by the end of 2023, which is 2 years earlier than anticipated. As a result, the company significantly raised its electric car production target for 2025. It now anticipates producing 1.5 million electric cars by 2025.
Per management, the latest production forecast demonstrates that people want climate-friendly individual mobility.
In September, the company unveiled its all-electric ID.3 model. ID.3 is based on Volkswagen’s Modular Electric Drive Toolkit (MEB) and its basic version’s costs are anticipated to be less than €30,000. More than 37,000 customers have booked ID.3 and paid a pre-booking deposit.
In November, the company started production of the ID.3 model at its Zwickau plant. It expects to produce up to 330,000 EVs from 2021, making Zwickau the largest and most efficient EV factory in Europe. In the meantime, preparations for the production of its ID. EV models in China and the United States are well underway. Pre-production of the ID. family has already begun at the Anting plant in China.
Volkswagen anticipates that the first ID.3 electric cars will appear on Europe's roads in summer 2020.
The company plans to invest €33 billion in e-mobility throughout the group by 2024, which includes €11 billion in the Volkswagen brand.
Shares of Volkswagen have outperformed the industry it belongs to over the past year. Its shares have appreciated 16.5% compared with the industry’s growth of 12.7%.
The company has also expanded into a variety of business areas in conjunction with its electric offensive. It is progressing with the production of charging infrastructure, with its recently established subsidiary, Elli.
Further, Volkswagen laid the foundation for battery cell development, testing and production.
Zacks Rank & Stocks to Consider
Currently, Volkswagen has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Auto-Tires-Trucks sector are Weichai Power Co. (WEICY - Free Report) , Spartan Motors, Inc (SPAR - Free Report) and SPX Corporation (SPXC - Free Report) . While Weichai Power flaunts a Zacks Rank #1 (Strong Buy) at present, Spartan Motors and SPX carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Weichai Power has a projected earnings growth rate of 6.1% for the current year. Its shares have gained 80.4% over the past year.
Spartan Motors has an estimated earnings growth rate of 85.4% for the ongoing year. The company’s shares have surged 154.9% in a year.
SPX has an expected earnings growth rate of 23.6% for 2019. The company’s shares have surged 80.7% in the past year.
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