Volkswagen Group

Osakkeet
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Volkswagen’s half-year results are out. I haven’t had time to study them, but based on the headlines, they seem positive.

https://www.volkswagenag.com/en/news/2021/07/Volkswagen_Group_raises_outlook_for_2021.html

Edit: I also took the liberty of removing the April Fool’s joke about the company name change.

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VW Transforms from Car Manufacturer to Mobility Service Provider, Business Model 2.0

All-inclusive 800 km/month from 499 € + electricity.

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At the end of this page, there’s a video that talks more generally about the changing mindset. For Finns, this might still feel unfamiliar. We’ve only just gotten status symbols in our yards, and now we’re supposed to give them up?!

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The ID.4 seems to be quite successful. Even in my wider circle of acquaintances (not family), there’s a good amount of interest.

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What do you think of VW’s valuation currently? I’m a bit puzzled why the P/E can be so low. And is there something vague in the balance sheets, or what explains the P/B being significantly below 1?

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I’ve also been mildly wondering about the same. VW is involved in many things, and one of them might solve something, but if it fails, it won’t shake the company. The battery and computer sides are the most important.

The IDs are praised even on American ID forums (FB). From there, I got the impression that you get free charging with the car. The product is good, made by a well-known and traditional European car manufacturer without any particular flaws. The threat is that new car manufacturers are emerging like mushrooms in autumn. A burden is, among other things, all kinds of news and rumors related to the emissions gate.

There was also a slight hype a moment ago. It was perhaps related to a few R&D matters and the success of ID.

Here it is quite clearly:

I don’t give recommendations, but I would say there are worse options available in this sector.

Edit: Volkswagen EV Charging Plans | Electrify America (3 years of electricity).

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Free electricity for 3 years in Canada too!
https://insideevs.com/news/527465/vw-id4-free-fastcharging-canada/
And it’s been awaited:

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There was a big lure at 180, but the catch seems to have swum past. Not raising the stakes yet, but I looked into what’s going on. There’s no specific news, but others are trying besides Tesla. Tesla just got some kind of setback in its European adventures. Volvo is coming from behind, but with steady intentions and certainly won’t invent everything itself. VW is equipping its factory:

Who will win, who will be popular in 2025? I bet VW is more than strong, which is why positive buzz is seen among ID users and in stores. I just booked a test drive now; until now, I’ve had to rely on others’ opinions.
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I don’t follow VW’s new things myself, but I stumbled upon these:

https://twitter.com/_mm85/status/1450881387729412099?t=HNuY07KZ1F8yq7mJyjQI2w&s=19

https://twitter.com/_mm85/status/1451129065084178435?t=PIsyaotyHJor-PU4rhOjTA&s=19

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Uhm… so… what are you trying to say with the tweet links? VW’s valuation, measured by its share price, is “down in the dumps” and that’s slightly puzzling, as @Ajukki noted earlier. Component shortages are a problem, etc., but still.

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I’m not trying to say anything because I don’t follow VW

but I thought that since that tweeter lives in Berlin and closely follows car companies like VW and NIO, there might be some information in the German articles he tweeted that could be useful in this thread for those interested in VW

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https://insideevs.com/news/544336/report-volkswagen-id6-import-europe/
You’d think there would be demand for something like this in Europe?

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Lowest price target/Kursziel (price target) €225 and highest €310.

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In-depth review of the VW ID5 GTX AWD vs ID5 Pro RWD. We’re taking a look at Exterior, Interior and technology.
Pari vuotta ja tiedetään millä kansa haluaa kulkea. Veikkaukseni on että kansanautolla.

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As a Tesla owner, many things are better in these cars. Regarding the software, I would say that my Tesla is constantly getting worse because the software slows down with updates (or at least it feels that way). For example, map scrolling and zooming have deteriorated. For me, Car Play would also be a better option than Tesla’s own apps.

The tow hitch in the video caught my eye as convenient.

I believe VW will sell these very well. But the discussion about the timeline in the Tesla thread is a good question. Is VW a few years ahead with its ID models compared to Toyota?

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What is the difference between Xetrass Volkswagen AG and Volkswagen AG ZC PRF PERPETUAL?

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Volkswagen AG (VOW) pays a lower dividend (4.8e/share 2021 ~1.64%) but includes voting rights. It also has lower trading volume.

Volkswagen AG ZC PRF PERPETUAL (VOW3) pays a better dividend (4.86e/share 2021 ~2.62%) and does not include voting rights.

A third way to own Volkswagen is through Porsche Automobil Holding (PAH3), which pays a relatively similar dividend (~2.53%) as VOW3 and allows you to buy Volkswagen cheaper. Of course, it carries risks from ongoing lawsuits.

EDIT:
Porsche owns 31.4% of Volkswagen’s shares, with a value of ~€39 billion, while Porsche’s market cap is €26.7 billion. Porsche also has other small holdings.

EDIT2: Porsche’s ownership stake is 31.4% not 34.1%

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VOW is an “ordinary share” with voting rights, while VOW3 is a “preferred share” without voting rights but with slightly better terms when assets are distributed, e.g., dividends. VOW3 has significantly better liquidity. Porsche holds over 50% of VOW, which means that even by owning VOW, one does not get real voting rights, as Porsche exercises them. In practice, both shares give the same ownership percentage in the company, so there is no point in buying VOW. For some strange reason, since the beginning of this year, the price of VOW has been much higher. Before this, they have been very close to each other throughout history. I looked into this price difference some time ago, and the reasons found were these:

  • The Reddit WSB hype that started early this year. They became interested in Volkswagen, and for some reason, they started buying VOW3 specifically. The biggest reason is probably the famous Volkswagen short squeeze of 2008 (The Volkswagen Short Squeeze (2008) (internationalbanker.com)), as WSB tries to create short squeezes.
  • Another reason was that in the US, “preferred share” refers to a different type of stock that differs from this German preferred share. Because of this, many people avoid preferred shares across the Atlantic, even though there is no reason to in the case of this stock.
  • Google searches also reportedly lead to buying VOW3 when someone becomes interested in Volkswagen and starts Googling.

All these reasons are irrational if one invests in the stock with a long-term view of the company, rather than, for example, hoping for a short squeeze. In reality, there is no sense in paying more for the same ownership (VOW) when one can get it cheaper (VOW3). Because VOW’s liquidity is so low (Porsche owns most of it), there apparently are not enough owners who could correct this arbitrage by selling VOW and buying VOW3. The only one who could do so would be Porsche, but it is not in their interest to do so because they own it precisely for the voting rights. However, I believe that at some point, the price difference will even out, either by VOW3 rising or VOW falling - or perhaps a combination of both.

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https://www.marketbeat.com/stocks/ETR/VOW3/price-target/

Indeed, it seems that Volkswagen (Volkkari) is on sale. This is not a recommendation, and my own limit order is still slightly below the current price. Over a few quarters, I believe this will show the markets where electric cars are coming from.

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