The Volkswagen stock shows first signs of stabilization despite ongoing challenges. The car manufacturer is facing a complex economic situation influenced by various factors. Here are some of the key developments and challenges currently affecting the Volkswagen stock:
Challenges
- Operational Results: In the first quarter of 2025, Volkswagen experienced a significant decline in its operational results. Instead of the expected 4 billion euros, only about 2.8 billion euros remained, marking a substantial drop compared to the previous year. The operational margin fell to 3.6 percent, down from 6.0 percent the year before.
- US Tariffs: The recently introduced US tariffs on imported vehicles are significantly impacting the export strategies of German manufacturers. These measures aim to protect the domestic auto industry, leading to shrinking margins in the North American market.
- Stock Price: The stock price of Volkswagen has declined significantly in recent months. In April 2025, the price fell by 18.61% within a month and is currently below the 50-day moving average.
Signs of Stabilization and Investments
- Investments in South America: Volkswagen plans to invest about half a billion dollars in Argentina to start the production of a new mid-sized pickup. This model is being developed specifically for the South American market and is expected to be produced at the Pacheco plant near Buenos Aires starting in 2027. These investments are part of the strategy to strengthen regional market positions and develop independent product solutions.
- Analyst Opinions: Despite the current challenges, analysts remain largely optimistic. They see an average price target of 118.41 euros, indicating significant price potential for the Volkswagen stock.
Outlook for Private Investors and Retail Investors: Private investors and retail investors might benefit from current developments by utilizing the signs of stabilization and the considerable price potential of Volkswagen stock. Investments in South America and the strategic focus on regional markets could have positive long-term effects on the stock price. However, investors should also consider the ongoing challenges and uncertainties in the global automotive market.
Overall, despite current difficulties, the Volkswagen stock offers interesting opportunities for investors willing to bet on long-term developments.