EV frenzy over Volkswagen shares draws regulator’s attention By Reuters

2/2
© Reuters. FILE PHOTO: FILE PHOTO: A Volkswagen logo is seen at a construction completion event of SAIC Volkswagen MEB electric vehicle plant in Shanghai

2/2

By Danilo Masoni

(Reuters) – An outsized rally in Volkswagen (DE:) shares has drawn the attention of Germany’s top market watchdog as heavy volume trading spurred by the carmaker’ electric vehicle ambitions set the stock for one of its best weeks ever.

Shares in Volkswagen rose as much as 9% in Frankfurt on Thursday before paring some of their gains after regulator BaFin said it was monitoring the share price move.

A spokeswoman said BaFin was watching the move in a “routine way”, without elaborating.

A raft of announcements on its electric vehicle expansion strategy to challenge market leader Tesla (NASDAQ:) has lifted Volkswagen shares more than 50% so far this year, luring institutional and retail investors globally.

The 83-year old group unveiled this week plans to build 12 battery cell plants in Europe by 2030 and expand infrastructure for charging electric cars.

The surge has lifted Volkswagen’s market value above $160 billion and making the carmaker the biggest company of the benchmark index, ahead of software group SAP.

Volkswagen’s main shares were up 1.6% by 1123 GMT, off earlier highs but still up more than 23% so far this week, while the less liquid ordinary stock was up 6.3% and up 42% on the week in its best run since 2008.

Gains in the ordinary shares and the American ADRs have been linked to growing interest from retail investors in the United States, which have contributed to a boom in trading volumes on the stock.

“We fundamentally like the name … we think not only institutional, but also a wave of private investors is increasingly interested,” wrote Barclays (LON:) analysts.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*