Introduction
The Mercedes-Benz stock has recently experienced a remarkable upturn of 7.3% and is now close to the €50 mark. After months of pressure and a decline since April 2024, when it was still at €77.74, the current price has rebounded to around €50.02.
Background and Challenges
US Tariffs and Job Cuts
The 25% tariffs on car imports threatened by the US government are putting significant strain on Mercedes-Benz. In addition, the costly job cuts and the transition to electric mobility are increasing financial pressure.
China Slowdown
Weaknesses in the Chinese market, a significant sales market, are negatively impacting sales and thus the stock price.
Technical Analysis
From a technical perspective, the €50 mark is a critical support level. A slip below could lead to a price drop to €25-30, as there is little support below that level.
Current Developments
- Tariff Relief: Adjustments to US tariff policy by Trump gave the stock a boost as they alleviated the burdens on Mercedes-Benz.
- Price Target Adjustments: UBS has lowered the price target to €50, reflecting the current challenges and market conditions.
Importance for Investors
For investors, the Mercedes-Benz stock remains interesting. As a DAX stock, it influences the market environment. The high dividend yield of over 7% is attractive, but volatility and the long-term corporate processes should not be overlooked.