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VW surges... and your (burrow) MGM is down 2.5% on the day.![]()
VW Soars Most Since Famous Short Squeeze on Plans to Beat Tesla
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VW Soars Most Since Famous Short Squeeze on Plans to Beat Tesla
Christoph Rauwald
Tue, March 16, 2021, 10:52 AM
(Bloomberg) --
Volkswagen AG shares surged the most since a historic short squeeze a dozen years ago after back-to-back days of briefings on how it plans to supplant Tesla Inc. as the global electric vehicle leader.
VW’s common stock soared as much as 29% on Tuesday after the company announced plans to standardize key technologies across its sprawling industrial empire and generate scale effects that both Tesla and established automakers are unlikely to match. On Monday, VW said it would build six battery factories in Europe alone.
The stock move is reminiscent of a short squeeze that briefly made VW the world’s most valuable company in 2008. VW’s three dominant holders - the Porsche and Piech family, the German state of Lower Saxony and Qatar -- hold 90% of common stock. VW’s preference shares, which have a much larger free float and are more widely traded, rose as much as 9.3% in Frankfurt trading.
VW aims to become the global EV leader by 2025 at the latest, though reaching its target of 1 million deliveries this year could put the company ahead of Tesla. Those big ambitions appear to be getting the attention of retail investors who have bid up U.S. stocks speculated about on Reddit and other social media forums early this year.
“We will accelerate our transformation journey in 2021 and beyond,” Chief Executive Officer Herbert Diess told reporters. VW’s newly formed management board “is set to unleash value,” he said.
Diess, 62, has been overhauling VW’s vast operations to free up funds for spending on the battery and software capabilities that made Tesla the world’s most valuable automaker last year. He was concerned until recently, telling Bloomberg News in January that the capital markets’ dim view on the company put it at a disadvantage.
The outsize gain in VW’s common stock relative to preference shares is partly driven by U.S. retail investor buying and high short interest,
Volkswagen AG (VWAGY)
Other OTC - Other OTC Delayed Price. Currency in USD
33.13+3.37 (+11.32%)
As of 2:33P

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