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What Is Going On With Volkswagen Stock?

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What Is Going On With Volkswagen Stock?

Volkswagen AG (OTC: VWAGY) OTC shares closed 29.25% higher on Wednesday.

What Happened: The German automaker’s American Depository Shares have soared 52.43% since Friday’s closing.

Last week, Volkswagen revealed its technology roadmap for batteries and charging up till the year 2030. 

The automaker said that together with its partners it wants to have a total of six cell factories running in Europe by 2030. These factories are expected to produce cells with a total energy value of 240 GWh per year.

This month, Volkswagen announced an expansion of its partnership with Swedish battery maker Northvolt. The automaker has placed a $14 billion order with Northvolt to supply premium battery cells to be used in European operations.

Why It Matters: Volkswagen and other incumbents’ ambitious plans may lead to the erosion in the value of Tesla Inc (NASDAQ: TSLA), according to Lansdowne Partners fund manager Per Lekander, who has a short position on the Elon Musk company's stock.

See also: How to Buy Volkswagen Stock

UBS said this month that it is not Chinese rivals like Xpeng Inc (NYSE: XPEV) or Nio Inc (NYSE: NIO) that threaten Tesla’s dominance in EVs but Volkswagen, which would vie for the top spot in few years.

Last year, Volkswagen CEO Herbert Diess said his company was in a “race with Tesla.”

Read Next: Volkswagen CEO To Now Compete With Elon Musk On Twitter, Warns Of Grabbing 'Some Market Share' From Tesla

 

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