Volkswagen Hits Brakes On Battery Unit Sale And IPO Amid EV Market Slowdown
Portfolio Pulse from Benzinga Neuro
Volkswagen AG (OTC:VWAGY) has postponed the sale of a stake in its battery unit, PowerCo, and its IPO due to a slowdown in the EV market. The company's preference shares fell by 1% after the news. VW is reevaluating its long-term funding plans for PowerCo, which was established to compete with Tesla Inc. (NASDAQ:TSLA) in the EV sector. Despite the delay, VW aims to be ready for investors from 2024. The EV market's slowdown is evident with VW-backed JAC's Yiwei EV, the first to use a sodium-ion battery, set to deliver in 2024, and QuantumScape Corp.'s shares, which VW is partnering with for solid-state batteries, pulling back after initial gains.
January 30, 2024 | 12:19 pm
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Volkswagen AG has delayed the sale of its PowerCo battery unit and its IPO, causing a 1% drop in preference shares.
The postponement of the PowerCo stake sale and IPO is a direct reflection of the current challenges in the EV market, which could lead to investor concerns about VW's growth in this sector. The immediate impact was a 1% drop in preference shares, indicating a negative market reaction.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEUTRAL IMPACT
Volkswagen AG's reevaluation of PowerCo's funding plans may affect its competitive stance against Tesla Inc. in the EV market.
While the news directly pertains to Volkswagen, it also has implications for Tesla as a key competitor in the EV market. However, the impact on Tesla is less direct and more speculative, depending on how VW's strategy changes and how the market responds.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50