Volkswagen CEO tweets in musky style for a milestone customary in the market



LONDON / FRANKFURT – When the market value of the German Volkswagen briefly surpassed the 100 billion euro mark on Wednesday for the first time since 2015, the head of the normally capable automaker went to Twitter in Elon Musk style to crow about it.

VW stock rose up to 6% after investment bank UBS raised its target price for the stock by 50% and the company’s new electric vehicle platform challenged Tesla’s dominance in the battery electric vehicle (BEV) market should.

Herbert Diess, CEO of the VW Group, highlighted the UBS note on Twitter and announced the milestone in market capitalization.

“The market has been waiting for our #BEV ramp-up and wanted to see some evidence,” wrote Diess.

Dealers responded by comparing them to Tesla boss Elon Musk, who often uses Twitter to talk about products developed by his companies, cryptocurrencies or other buzzing technologies.

The comparison has to end there, at least for the time being.

Less than two months ago, Diess sent its first tweet with the handle “@Herbert_Diess” and has tweeted 51 times since then. While he managed to amass nearly 25,000 followers during that time, Musk can boast 48.3 million.

“The mere fact that he started his own account art from the official VW account shows me that between the lines he wants to express: We are here,” said a dealer based in Germany.

Though unrelated and more of a market-moving tweet, another trader highlighted cases of a U.S. Securities and Exchange Commission investigation into Musk’s tweet in 2018 that he was considering taking Tesla private for $ 420 per share.

EV RACE VS. MARKET C RACE

Despite recent price gains – up 20% this year – VW’s market cap is only one-sixth that of Tesla. Shares are traded 7.5 times 12 month forward earnings; His role in the EV transition may not be fully established.

Tesla is now trading 160x 12-month futures earnings, which are viewed by many as bubble-like.

On the market cap, UBS said VWs only considers its EV business until 2025 and does not rate its cash-flow-rich legacy business, indicating that the share price may rise.

It added that VW would likely “master” the transition to closing volume g with Tesla in 2022.

At 300 euros, UBS has the most optimistic price target for VW. According to refinitive data, the analysts’ mean target price for their shares was 191 euros.

Preferred shares, which are listed in the German benchmark index DAX, reached their highs in January 2018 on Wednesday, while common shares rose 5.6% to their highest level since July 2015 two months before the diesel scandal broke out.

VW closed the day at 185.18 euros per share, 4.7% higher and increased its market value to 99 billion euros.

Tesla vs VW https://fingfx.thomson.com/gfx/buzz/ygdvzellrpw/Pasted%20image%201614767907811.png

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