{"id":108548,"date":"2021-03-03T17:26:30","date_gmt":"2021-03-03T17:26:30","guid":{"rendered":"https:\/\/fin2me.com\/?p=108548"},"modified":"2021-03-03T17:26:30","modified_gmt":"2021-03-03T17:26:30","slug":"volkswagen-ceo-tweets-musk-style-on-market-cap-milestone","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/volkswagen-ceo-tweets-musk-style-on-market-cap-milestone\/","title":{"rendered":"Volkswagen CEO tweets, Musk-style, on market-cap milestone"},"content":{"rendered":"

LONDON\/FRANKFURT (Reuters) – When the market value of Germany\u2019s Volkswagen briefly rose above the 100-billion-euro mark on Wednesday for the first time since 2015, the boss of the normally staid carmaker took to Twitter, Elon Musk-style, to crow about it.<\/p>

FILE PHOTO: An employee fixes a VW sign at a production line of the electric Volkswagen model ID.3 in Zwickau, Germany, February 25, 2020. REUTERS\/Matthias Rietschel\/File Photo<\/figcaption>

VW shares soared as much as 6% after investment bank UBS raised its price target on the stock by 50% and said the company\u2019s new electric vehicle platform was set to challenge Tesla\u2019s dominance in the battery electric vehicle (BEV) market.<\/p>\n

Herbert Diess, chief executive of VW Group, highlighted the UBS note on Twitter and shared the market capitalisation milestone.<\/p>\n

\u201cThe market has been waiting for our #BEV-ramp-up and wanted to see some proof points,\u201d Diess posted.<\/p>\n

Traders reacted with comparisons to Tesla chief Elon Musk who frequently uses Twitter to talk up products developed by his companies, cryptocurrencies or other buzzing technologies.<\/p>\n

The comparison, at least for now, must end there.<\/p>\n

Diess sent his first tweet using the \u201c@Herbert_Diess\u201d handle less than two months ago and has since tweeted 51 times. While he has managed to amass almost 25,000 followers in this time, Musk can boast of 48.3 million.<\/p>\n

\u201cThe sheer fact that he started his own account apart from the official VW account tells me, that between the lines he wants to express: We are here,\u201d a Germany-based trader said.<\/p>\n

Though unrelated and more a market-moving tweet, another trader highlighted instances of a probe by the U.S. Securities and Exchange Commision on Musk\u2019s tweet in 2018 that he was considering taking Tesla private at $420 a share.<\/p>\n

EV RACE VS. MARKET CAP RACE<\/h2>\n

But despite recent share price gains — up 20% this year — VW\u2019s market capitalisation is just one-sixth that of Tesla. Shares trade 7.5 times 12-month forward earnings; possibly its role in the EV transition is not fully priced.<\/p>\n

Tesla meanwhile trades at 160 times 12-month forward earnings, levels many consider bubble-like.<\/p>\n

On the market capitalisation gap, UBS said VW\u2019s only takes into account its EV business out to 2025, and doesn\u2019t price its cash flow-rich legacy business, indicating there is room for the share price to rise.<\/p>\n

It added that VW would likely \u201cmaster\u201d the transition to close the volume gap with Tesla in 2022.<\/p>\n

At 300 euros, UBS has the most bullish price target on VW. Analysts\u2019 median price target on its shares was 191 euros, according to Refinitiv data.<\/p>\n

Preferred shares, which are listed in Germany\u2019s benchmark DAX index, hit January 2018 highs on Wednesday, while ordinary shares rose as much as 5.6% to their highest since July 2015, two months before the diesel scandal broke.<\/p>\n

VW closed 4.7% higher at 185.18 euros per share on the day, taking its market value to 99 billion euros.<\/p>\n

(Graphic: Tesla vs VW: )<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

LONDON\/FRANKFURT (Reuters) – When the market value of Germany\u2019s Volkswagen briefly rose above the 100-billion-euro mark on Wednesday for the first time since 2015, the […]<\/p>\n","protected":false},"author":3,"featured_media":108547,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nVolkswagen CEO tweets, Musk-style, on market-cap milestone - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/volkswagen-ceo-tweets-musk-style-on-market-cap-milestone\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Volkswagen CEO tweets, Musk-style, on market-cap milestone - Fin2me\" \/>\n<meta property=\"og:description\" content=\"LONDON\/FRANKFURT (Reuters) – When the market value of Germany\u2019s Volkswagen briefly rose above the 100-billion-euro mark on Wednesday for the first time since 2015, the [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/volkswagen-ceo-tweets-musk-style-on-market-cap-milestone\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-03T17:26:30+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/03\/cnewsfotor89-4.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/volkswagen-ceo-tweets-musk-style-on-market-cap-milestone\/\",\"url\":\"https:\/\/fin2me.com\/markets\/volkswagen-ceo-tweets-musk-style-on-market-cap-milestone\/\",\"name\":\"Volkswagen CEO tweets, Musk-style, on market-cap milestone - 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