VW reaches e-car milestone in Zwickau

Volkswagen $VOW3 (+0,78 %) has reached an impressive milestone at its Zwickau factory: the millionth electric car has been produced. Since November 2019, the plant has focused exclusively on all-electric vehicles. However, despite this impressive figure, the Group is facing challenges. Demand for e-cars is falling short of expectations, forcing VW to introduce a cost-cutting program. In future, only Audi models are to be manufactured in Zwickau. At the same time, the site is considering establishing a new business segment in the circular economy. This could help to secure competitiveness and attract new investment. The head of the Works Council emphasizes the strong performance of the workforce, but stresses the need to future-proof the site in order to remain successful in the coming years.

Meta surprises with 35 percent jump in profits

In the USA, the Facebook parent company Meta $META (+3,95 %) recorded an impressive 35 percent jump in profits in the first quarter. This increase is primarily due to growing advertising revenue. The company's AI-supported applications are extremely popular and are now used by almost one billion users every month. In order to remain competitive in the technology of the future, Meta's CFO plans to increase investment in data centers. Despite concerns about rising costs, analysts see the positive developments in advertising revenue as encouraging. The share price rose by almost four percent in after-hours trading. While Meta is talking about an impressive turnover of 42.31 billion dollars this quarter, the company is also facing regulatory challenges, including a US antitrust case and a fine of 200 million euros from the EU.

Sources:

https://www.n-tv.de/wirtschaft/VW-baut-in-Zwickau-eine-Million-E-Autos-article25738718.html

https://www.n-tv.de/wirtschaft/Meta-ueberrascht-mit-35-Prozent-Gewinnsprung-article25739328.html

The British food delivery service Deliveroo $ROO (+0,54 %) has officially confirmed that a takeover bid from US competitor DoorDash $DASH (+6,37 %) is on the table. This rumor had been floating around since last year, when earlier talks about a potential purchase stalled due to differing views on the company's valuation. Negotiations were broken off in May 2022, but the current offer could breathe new life into the discussions. A merger between these two heavyweights in the food delivery industry could not only shake up market shares, but also set new standards in the delivery services industry. The question remains as to how the two companies will react to their previous differences and whether they can now develop a common vision for the future.

In the USA, Volkswagen $VOW3 (+0,78 %)-CEO Oliver Blume caused a stir by questioning the planned end of new combustion cars in 2035. In a revealing interview, Blume expressed his approval of a proposal from the EU Commission that envisages a three-year compensation mechanism for the CO₂ fleet targets from 2025 to 2027. This concept could give manufacturers more leeway to achieve their CO₂ targets without losing valuable savings. Blume emphasized that politicians urgently need to provide more support in order to really master the challenges associated with the upcoming milestones. Given the changing framework conditions in the automotive industry and the focus on sustainability, how these discussions develop and what role the company will play in them could be crucial for Volkswagen.

Sources:

https://www.spiegel.de/wirtschaft/unternehmen/deliveroo-bestaetigt-uebernahmeangebot-von-doordash-a-593890ba-05f9-4818-81f0-127be36898d5

https://www.spiegel.de/wirtschaft/unternehmen/vw-chef-oliver-blume-stellt-aus-fuer-neue-verbrennerautos-im-jahr-2035-infrage-a-93f98987-a454-4d80-9722-37009fd5aef8

Tariffs in the USA weigh on Volkswagen

A report in the "Wall Street Journal" shows that Volkswagen has $VOW3 (+0,78 %) has temporarily halted deliveries of vehicles from its Mexican plant in Puebla. These vehicles, which are transported to the USA by rail, are now on hold. Ship imports from Europe will also have to wait, as the cars are being held back in the ports until the customs situation eases. Fortunately, vehicles that arrived in the USA before the tariffs came into force will be spared the new charges. Volkswagen plans to draw attention to the new car tariffs in its US car dealerships. The price tags will refer to a possible "import surcharge" that could apply to vehicles affected by the 25 percent tariff. Details on the amount of the surcharge and when it will come into force are not yet known. However, the uncertainty surrounding the tariffs is causing anxious faces among buyers and could affect sales.

Gold price rises to record high, dollar under pressure

The uncertainty surrounding the new tariffs has caused movement on the financial markets. Investors are looking for security and this has led to an increase in demand for gold. The price of gold reached a record high, showing that many investors are turning to tried and tested assets as a hedge. The prices of government bonds, such as those of Germany, are also on the rise. The euro continued to gain against the dollar, rising to almost 1.10 US dollars. In contrast, the dollar index lost 0.8% at its peak and fell to 102.9840 points - its lowest level since mid-October 2024. But it is not just the dollar that is coming under pressure, commodity prices are too. North Sea Brent crude oil and US light oil WTI fell by around 2.5 per cent each. In addition, prices for industrial metals such as tin, aluminum, copper and nickel fell by up to three percent. Commodity strategist Vivek Dhar from the Commonwealth Bank of Australia makes it clear that demand for oil is particularly dependent on the emerging markets, where some of the tariffs are particularly high. Developments on the markets show how strongly geopolitical factors influence the economy.

Sources:

https://www.spiegel.de/wirtschaft/zoelle-in-den-usa-deutsche-wirtschaft-erwartet-massive-belastung-a-d2903be7-ce5f-48e7-83f3-ccf6603c463b

https://www.spiegel.de/wirtschaft/donald-trump-und-die-zoelle-dollar-bricht-ein-gold-auf-rekordkurs-dax-unter-druck-a-ee9fa4d7-95e6-4ead-ac17-4636f022587a

Trump tariffs burden German car manufacturersDonald Trump's announcement to impose tariffs of 25 percent on car imports to the USA is causing great concern in the German automotive industry. Companies such as Volkswagen $VOW3 (+0,78 %)BMW $BMW (-0,24 %) and Mercedes $MBG (+0,37 %) in particular must be prepared for considerable consequences. These new tariffs particularly affect vehicles imported into the USA from Europe. Fortunately, cars produced in the USA will be spared these additional duties. Nevertheless, the pressure on German manufacturers will increase as they will have to adjust their prices in order to remain competitive. Uncertainty over future trade relations between the USA and Europe remains a crucial issue for car manufacturers.

Von der Leyen stands up for EU workersIn the current situation, EU Commission President Ursula von der Leyen has clearly positioned herself and emphasized that the EU must stand together as a major trading power to protect the interests of its workers, companies and consumers. In view of the new tariffs, it is important that the EU stands united in order to minimize any negative impact on the European economy. EU Commissioner Maroš Šefčovič had recently held talks in Washington to avert the punitive tariffs, but without success. The challenges for the automotive industry, especially in Germany, are palpable and the coming months will be crucial in finding solutions. If the EU does not act together, the economic consequences could be even more serious than they already are.

Sources:

https://www.spiegel.de/wirtschaft/unternehmen/vw-bmw-mercedes-so-hart-treffen-die-trump-zoelle-deutschlands-autokonzerne-a-20b455f0-be89-4723-a332-7a678fb754d7

https://www.spiegel.de/wirtschaft/autozoelle-von-der-leyen-will-arbeitnehmer-firmen-und-verbraucher-in-der-eu-schuetzen-a-997b7b69-c448-4149-ac81-7abc05011fda

$VOW3 (+0,78 %)

I entered the VW VZ. share at a relatively unfavorable time. ~130€ 🫣

The share price has improved a little recently 🤠. Moreover, the dividends have not been so bad in recent years 🤑.

Hence my question to you:

Would you continue to bet on VW ( the share in the portfolio is relatively high at around 7-8% ), or realize partial losses and invest elsewhere. 🤔🤔

I would be very grateful for any constructive feedback!

Tesla $TSLA (+2,01 %) and Volkswagen $VOW3 (+0,78 %) represent two different approaches in the automotive industry. While Tesla is regarded as a technology leader with a focus on electric cars, software and autonomous driving, VW focuses on scaling, a broad model range and solid finances. But which share is currently more attractive?

1. fundamentals in comparison

Volkswagen (2024)

- Turnover: EUR 322 billion

- Profit: EUR 17 billion

- Profit margin: 5.6

- P/E ratio (2025e): 4.5

- P/E ratio (2025e): 0.2

- Dividend: EUR 9.06/share (approx. 7% yield)

- Market capitalization: EUR 62 bn

- Stability: Solid, but with transformation risks

Tesla (2024)

- Turnover: USD 96 bn

- Profit: USD 15 billion

- Profit margin: 7.6

- P/E ratio (2025e): 45

- P/E ratio (2025e): 5.8

- Dividend: USD 0

- Market capitalization: USD 560 bn

- Stability: High volatility, dependent on growth

2. strengths & weaknesses of both companies

VW advantages:

✅ Broad model range with strong global sales

✅ Investments in e-mobility & battery technology

✅ Very favorable valuation & attractive dividend (strong profits)

VW risks:

❌ Software problems delay innovations

❌ Lower profitability than Tesla

❌ High cost pressure due to transformation

Tesla advantages:

✅ Leading in e-cars and autonomous driving

✅ High software and AI expertise (FSD, Robotaxi)

✅ Strong brand loyalty and innovative strength

Tesla risks:

❌ High valuation, increasing competition (BYD, Nio, traditional car manufacturers)

❌ Uncertainty in demand due to price reductions

❌ Dependence on Elon Musk and his political behavior

3. conclusion: which share is more attractive?

🔎 In the short term: VW offers an extremely favorable valuation and a high dividend, but has operational challenges. Tesla remains innovative, but is expensive and volatile.

🔎 Long-term: If you believe in technology, autonomous driving and strong growth at Tesla, bet on Tesla. Those who prefer substance, stability and dividends can make a stable investment in VW.

My personal decision 😁

I have decided in favor of Volkswagen. The low valuation, the attractive dividend and the long-term strategy in the areas of electromobility and software make VW an interesting investment opportunity for me. Of course there are challenges, but this is precisely where I see the possibility that the market is currently underestimating VW's potential.

💡 Which share would you choose - Tesla or VW? Write your opinion in the comments!

🔍 Disclaimer: No investment advice - just my personal opinion. Everyone should do their own research!

As every Sunday, the most important news from the past week, as well as the dates for the coming week.

Also as a video:

https://youtube.com/shorts/cpIdQFYiLeY?si=gaKXoxc1Q7c_VbNC

Sunday:

Due to industrial overcapacity, deflation is depressing prices in China. Prices there fell by an average of 0.7% compared to the same month last year. The reason for the decline was probably a high basis for comparison from the previous year, as well as government programs to boost consumption.

https://www.handelsblatt.com/finanzen/geldpolitik/deflation-verbraucherpreise-in-china-sinken-nach-13-jahren-erstmals-deutlich/100112409.html

Monday:

$HFG (+1,85 %) Hellofresh shocks the markets with a sales warning, down more than 10%. Analysts at JP Morgan continue to see the price target at 15 euros. This is because EBITDA is expected to rise again. Hellofresh is dispensing with expensive marketing campaigns, which hurts sales but may increase profits.

https://www.deraktionaer.de/artikel/aktien/hellofresh-schockt-mit-umsatzprognose-aktie-rauscht-nach-unten-20376335.html

Tuesday:

$VOW3 (+0,78 %) Volkswagen is struggling with a drop in sales and profits. Overall, 2.3% fewer vehicles were sold. Sales for 2024 increased minimally by one percent to 324.7 billion euros. Profit fell from 17.8 to 12.3 billion euros.

https://m.bild.de/geld/wirtschaft/zahlen-fuer-2024-volkswagen-gewinn-bricht-um-30-6-prozent-ein-67cfda107831137d2727f9c3

Wednesday:

$P911 (+1,05 %) Porsche earns significantly less. Similar to VW, profits are down by around 30%. The dividend is to remain stable. Turnover is also expected to stagnate in 2025.

https://www.handelsblatt.com/unternehmen/industrie/porsche-gewinn-sinkt-um-30-prozent-dividende-bleibt-stabil/100111337.html

Not only is Rheinmetall's share price rising $RHM (+4,92 %) Rheinmetall is rising, sales are also increasing significantly. Rheinmetall could grow by 34% in 2024. Growth of 25-30% is also expected for 2025. Rheinmetall achieved sales of just under 10 billion euros in 2024. The order backlog grew to 55 billion euros. The dividend is set to rise from 5.70 to 8.10 euros per share.

https://www.handelsblatt.com/unternehmen/industrie/rheinmetall-ruestungskonzern-steigert-umsatz-um-36-prozent-dividende-erhoeht/100112608.html

$TMV (-1,6 %) Teamviewer is celebrating its 20th anniversary, which means the tech company from Göppingen has been around longer than the average lifespan of a German company (around 12 years). Click here for a summary of the company's history:

https://www.finanzen.at/nachrichten/aktien/teamviewer-konzerngeschichte-deutschlands-unsichtbarer-tech-champion-mit-globaler-reichweite-1034321282

US inflation data comes in lower than expected, market bounces back. Compared to the same month last year, prices rose by 2.8%. An increase of 2.9% was expected.

https://finanzmarktwelt.de/inflation-us-verbraucherpreise-niedriger-jetzt-wird-bestimmt-alles-gut-342006/

Thursday:

The fashion group $BOSS (+1,37 %) Hugo Boss from Metzingen wants to increase its dividend to 1.40 euros per share. At 4.31 billion euros, turnover was three percent above the previous year's figure and higher than ever before. Declining sales in China were a particular burden on the Group. Profit therefore fell by 17% to 217 million euros. In the coming year, turnover is expected to stagnate, but profitability is set to increase.

https://fashionunited.de/nachrichten/business/trotz-umsatzrekord-jahresgewinn-von-hugo-boss-sinkt-um-17-prozent/2025031360615

Companies such as $DTG (+0,38 %) Daimler Truck fell significantly after Donald Trump announced that he would relax the emissions regulations for trucks. Daimler in particular has invested billions of dollars in recent years to make its trucks environmentally friendly.

https://www.finanzen.net/amp/trump-im-fokus-daimler-truck-aktie-verliert-aufgrund-von-ergebnissorgen-zweistellig-14313701

With the inflation rate in the USA already below expectations, producer prices are also below expectations. This is particularly interesting, as producer prices are a leading indicator for inflation in the future.

https://www.ariva.de/amp/usa-erzeugerpreise-steigen-weniger-als-erwartet-11567717

Friday:

As with $VOW3 (+0,78 %) VW, BMW's profits are also on the decline. BMW achieved a profit of 7.7 billion euros, 37% less than a year ago. Turnover fell by 8.2% to 142 billion euros. China is the main problem for BMW.

https://www.saarbruecker-zeitung.de/nachrichten/wirtschaft/gewinn-bei-bmw-sackt-ab-die-ganz-fetten-jahre-sind-vorbei_aid-125213969

These are the most important dates for the coming week:

Wednesday: 04:00 Interest rate decision (Japan)

Wednesday: 19:00 Interest rate decision (USA)

Thursday: 12:00 Interest rate decision (BoE)

Can you think of any other dates? Write it in the comments 👇

#usa #interest #japan

Must withdraw my statement!

$VOW3 (+0,78 %) is now building tanks: https://www.deraktionaer.de/artikel/aktien/volkswagen-vom-passat-zum-panzer--20376446.html

From car manufacturer to food company to defense contractor.

Broadly diversified - never regretted

If the core business is no longer doing so well, the currywurst has to pull the cart out of the mud: $VOW3 (+0,78 %) sells more curry sausages (8.8 million) than cars (5.2 million)

And you know what the best thing is? We can look forward to a currywurst coup. Yeah man!

https://www.linkedin.com/posts/gunnar-kilian_volkswagen-currywurst-erfolgshunger-activity-7304788163523149824-zBeP?utm_source=share&utm_medium=member_desktop&rcm=ACoAAEC7lYUB1xADzpiGIPdkQuN1O94cTlxnXaM

But as Gerry used to say back then: "Currywurst with chips is one of the power bars of the skilled worker in production. It should stay that way."

Picking up speed again $VOW3 (+0,78 %) now picking up speed again and becoming a successful food manufacturer?