Volkswagen experiences a post-crash surge, jumping up by 8%?
Is Volkswagen Stock's Rollercoaster Ride Coming to an End, or Will the Adventure Continue? After a brutal 2024, the stock is recovering in the new year. Here's what could shape its future trajectory.
Let's face it, the future of the Volkswagen stock doesn't shine too brightly at the moment. Brutal competition from China, the announcement of U.S. tariffs, and a gloomy market climate have taken a heavy toll on the stock in recent months.
However, after hitting rock bottom in December 2024, the stock is staging a comeback. During the past month, the stock gained approximately eight percent and breached the psychologically significant 90 euro mark. There was a minor setback, though, as the stock dipped by more than 1.5 percent on Monday. Three elements could aid the stock in the mid-term.
Volkswagen AG (WKN: 766403) ## A Helping Hand for Volkswagen: Collective Bargaining Agreements, Trump, and Electric Cars?
What's boosting the Volkswagen stock in recent days is the impending conclusion of new collective bargaining agreements by the end of January 2025. Additionally, Volkswagen CEO Oliver Blume has announced that he intends to collaborate with the new U.S. President Donald Trump, despite the looming threat of tariffs. In an interview with "Bild am Sonntag," he said, "We have been a part of the U.S. society for over 75 years and employ thousands. We plan to continue working with the future U.S. administration as we have in the past."
This reassurance might be enough for investors. On top of that, the company is still investing in wind and solar power, even as demand for electric cars slows down. Andreas Walingen, chief strategist of the core brand VW, noted, "Parallel to ongoing sales of ID models, we plan to expand our commitment to renewable energies annually." Unfortunately, the company didn't provide details on new projects or targets for expansion, which will depend on demand for electric cars.
Steady as She Goes - and Poised for Success?
The future may not be crystal clear, but Volkswagen is steadfast in its transformation process and demonstrating stability in several areas. This won't cause the stock to skyrocket overnight, but it could help the stock maintain its recovery and stabilize in the future. However, the company will need to bring new innovations to the table to make an impact in the essential growth market of China and hold its own against competition. Investors should keep an eye on the stock's development by the end of January to see how things unfold.
Contains material from dpa-AFX
Bonus Reads:
- Substantial Cashback with Popular Credit Card: How to Reap the Rewards
- Shattering Records: Rheinmetall Stock Hits an All-Time High. Is this happening now?
Conflict of Interest Disclosure:The CEO and significant shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has invested, either directly or indirectly, in the following financial instruments or related derivatives, which could benefit from the stock's price movements: Volkswagen Vz.
Conflict of Interest Disclosure: The editorial director, Mr. Frank Pöpsel, has invested, either directly or indirectly, in the following financial instruments or related derivatives, which could benefit from the stock's price movements: Volkswagen Vz.
- Given the impending conclusion of new collective bargaining agreements and the CEO's intention to collaborate with the new U.S. President, the potential cooperation could positively influence the financial performance of Volkswagen stocks.
- Investors should monitor the stock's development by the end of January to assess its mid-term trajectory, as Volkswagen's continuous investment in renewable energies and stable transformation process show potential for continued recovery, but may not lead to immediate skyrocketing growth.
