With publication of this study, UBS analysts have increased the 12-month target for Volkswagen stock by 50%, from €200 to €300. Their recommendation is to buy. “The market has been waiting for our BEV-ramp-up and wanted to see some proof points, so here we are…,” wrote Herbert Diess, CEO of Volkswagen Group, on LinkedIn.
Key findings of the study:
- The MEB platform on which the Volkswagen electric offensive is built is fully cost-competitive with US electric pioneer Tesla.
- Volkswagen is achieving peak performance in terms of efficiency, scalability and the energy density of its batteries.
- When it comes to battery cell costs, the Volkswagen ID.3 is among the top 3 worldwide at around USD 100 per kilowatt hour.
- Electric cars from leading manufacturers such as Volkswagen may attain the level of today’s combustion models in terms of costs and profit margins by 2025.
- In terms of the software platform and ecosystem, Volkswagen is currently still behind Tesla – however, Volkswagen is in pole position among the other established car manufacturers.
“The analysis of the ID.3 shows that Volkswagen has developed a pure electric platform which is cutting-edge. This enables the group to offer attractive electric vehicles (BEVs) across the entire product range, and to achieve positive earnings (EBIT),” UBS says. On this basis, UBS expects that Volkswagen will be a joint world market leader for pure electric vehicles as early as 2022 – with the potential to win market share.