Volkswagen (VWAGY) Plans to Launch 11 New Electric Cars by 2027
Volkswagen VWAGY announced plans to launch 11 new electric cars by 2027. The electric vehicles (EVs), with a few new concepts, underscore the company’s long-term plan to offer a wide range of EVs. The announcement took place in light of the ongoing EV price war.
EVs are usually more expensive than their fuel-powered counterparts. This point of difference has discouraged the mass adoption of EVs. Stuck with high inventory and low demand, EV makers have now resorted to price cuts at the expense of narrowing margins.
Tesla, Inc. TSLA, one of Volkswagen’s biggest competitors, announced a few rounds of price cuts, starting last year, to capture market share. Tesla’s cheapest EV, the Model 3, starts at around $37,000 before tax incentives, while Volkswagen’s most affordable EV will be available at nearly $25,000.
The German automaker plans to make its entire lineup in Europe electric by 2033. Until then, the automaker will continue to offer both combustion and hybrid models.
In a bid to increase the efficiency of its popular models, Volkswagen will soon release a plug-in hybrid version of its Passat and Tiguan models with an electric range of about 100 km.
Thomas Schafer, CEO of Volkswagen Passenger Cars, said that the final generation of its combustion engine models will be better than ever before.
Volkswagen also unleashed the ID. GTI concept. The concept is based on the company’s MEB platform and aims to leverage the popularity of the GTI brand to advance in the direction of an all-electric future. This will be a revival of the GTI brand for performance-focused EVs.
The "I" in GTI branding that formerly stood for "injection" has now been updated to "intelligence." Schafer said that the production version of ID. GTI would be revealed in 2026 and will hit the market in 2027.
Zacks Rank & Key Picks
VWAGY currently carries a Zacks Rank #4 (Sell).
Some top-ranked players in the auto space include Oshkosh Corporation OSK and Gentex Corporation GNTX, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 23 cents in the past 30 days. The EPS estimate for 2024 has moved up by 5 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.
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