Germany-based Volkswagen AG (VWAGY) has plans to launch a fully-electric SUV and a pickup truck in the U.S., a report published by Reuters said, citing people with knowledge of the matter.
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With an investment of around €100 million, the carmaker intends to launch these vehicles under the Scout brand. Volkswagen plans to get funding for the brand through an IPO or investors.
About Volkswagen
Volkswagen designs, manufactures and sells passenger and commercial vehicles, motorcycles, engines and turbomachinery. It also offers related services like financing, leasing and fleet management.
Analyst’s Opinion
On May 10, Berenberg analyst Adrian Yanoshik initiated coverage on the stock with a Hold rating and a $184.23 price target (810.2% upside potential).
In a research note to investors, the analyst said, “Despite market concerns on demand weakness, supply chain disruption and cost inflation, price-mix strength and deep order books can help generate free cash flow and fund transformation of legacy businesses into the electrified arena.”
Overall, the stock has a Hold consensus rating based on one Hold. Volkswagen’s average price target of $184.32 implies 810.2% upside potential. Shares have lost 37.8% over the last six months.
Conclusion
With the launch of its all-electric pickup and SUV, Volkswagen will compete with Ford (NYSE: F), General Motors (NYSE: GM), Rivian Automotive (NASDAQ: RIVN) and potentially Tesla (NASDAQ: TSLA).
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