Volkswagen
’s
VWAGY
subsidiary Porsche has sprinted to the forefront in the electric vehicles (EVs) space and has set ambitious targets in the domain. Last year, nearly 40% of Porsche’s deliveries in Europe were already at least partly electric, and the auto biggie aims to take it further. It has set an ambitious target of generating half of its sales from EVs by 2025, and by 2030 the share of all new vehicles with an all-electric drive should cross 80%.
Porsche recorded all-time highs in sales and operating profit in 2021. Globally, Porsche delivered 301,915 vehicles, exceeding the 300,000 mark for the first time in its history. In 2021-end, revenues were a thumping €33.1 billion ($36.7 billion), up €4.4 billion year over year, and operating profit jumped 27% to €5.3 billion ($5.9 billion).
Sales of the first all-electric Porsche, Taycan EV, more than doubled to 41,296, outdoing the sales of the iconic 911 sports car, which also hit a new sales record of 38,464 deliveries.
The company is working on another premium all-electric model, the mid-engine 718 sports car and expects to offer it by mid-decade. Moreover, it has lined up investments in a number of upcoming projects and core technologies. The iconic 911 sports car will also be electrified, though the timeline has not been released yet. High-performance battery cells are being produced in the newly established Cellforce Group and are expected to be ready for series production by 2024.
Meanwhile, talks of VWAGY’s subsidiary Porsche’s going public are also underway. The IPO of Porsche is likely to value the automaker at around $90 billion.
There is also speculation of a probable partnership with
Apple
AAPL
, wherein the two companies will jointly work on some trailblazing EV projects.
It might be the long-discussed EV car by Apple powered by Porsche’s mechanic or an Apple OS takeover of the Porsche infotainment system or an integrated experience like CarPlay. While there are no specifics about the collaboration, a partnership would mark a vital step in the EV domain.
Shares of Volkswagen have plunged 35.9% over the past year compared to its
industry
’s 11.6% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Volkswagen carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are
Harley-Davidson
HOG
and
Tesla
TSLA
, each sporting a Zacks Rank #1 (Strong Buy) currently. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 14.4% over the past year.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 14.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.26%, on average. The stock has rallied 35.1% over the past year.
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