I’d like to buy VW yes. I’m not sure if VOW or VOW3 but I’m likely to go for the liquid market at the moment. I have NIO (impressive sales this week) and I’m keeping an eye on Nikola, Toyota and Honda. The problem is these companies make a lot of noise but don’t have the track records in EV or hydrogen, Honda has put out the Honda-E (e-Honda must have been trademarked) but these will not form a large share of sales for a number of years unless they do what VW has done. The Japanese companies have admirable research departments but not the sales of their labouring. Where is the Hydrogen infrastructure? There’s only 2 fuelling stations in London. So for the short and medium VW are leading.
Been asking for VW for a while now on this forum, fingers crossed they will add VW soon, as they own a few other car companies, so you get a package deal with them!
Would be great if we could get VOW added, they are the only stock out of my wishlist not added now.
VW in my opinion would be a bit of a brave pill as I don’t see major upside. Massively capital intensive and the most indebted company in the world. Production stops across pretty much all VW Group brands during corona, layoffs and recruitment freezes all around. Electrification proving very difficult. Definitely a behemoth that can take an absolute pounding and therefore rather a long term investment, I would just feel too exposed to the sketchy nature of the car industry. It’s not a Tesla like stock that climbs 50% in a short timeframe so for me something like the S&P500 for example is more diversified and I would expect similar performance with much less risk. I’d like to hear others opinions and rationale for why this should be a portfolio contender of course!
Plenty of reasons already posted in the thread. Not every stock needs to be ‘a Tesla like stock’ - its great to have some volatile stock that climb like that, but I also don’t want all of my portfolio to be built of stocks that are just as likely to fall 50% because the CEO is bored or high and posts something stupid on twitter.
I already hold Tesla, and NIO for that matter (just sold NKLA at a decent profit having bought it at $14) but I see it as a long term bid into technology more than I see it as a car firm. I also want an established car player that is already proven in its ability to make, market and sell cars, and is showing positive signs of getting into the electric market - I am quite happy to accept slow but steady growth in some shares to balance volatility in others.
I have also invested in other, non electric paths to the future such as hydrogen players, as I am not yet convinced electric is the total answer.
Sorry if I gave the impression that Tesla was a better alternative - I actually think that the Tesla stock valuation is ludicrous especially if compared to for e.g. VW or Toyota etc. Tesla stock is effectively a gamble with the amount it swings. My point about VW was more that the potential returns are slow and steady, comparable to an ETF but with much greater downside risk as your are not diversified as much. So for me I would be taking on more risk with less rewards. The DAX is a great alternative for me in this case as it allows me to be exposed to Daimler and BMW at the same time.
No worries, re-reading my answer I dont come across as nicely/as well as I meant to either so ditto on the apologies
I’ve actually just rebalanced my portfolio, I now have a small smattering of commodities, some bonds, a mix of my favorite stocks - some volatile, most ones that I think will grow, and a couple of ETFs.
I agree ETFs are a sensible route for most, but I like to be a little more active in my choices - I dont necessarily think I can do better, I just want to be more active than passive at this point.
VDXX is a DAX tracker available on Freetrade with approx 9% weighting to automobiles.
I think VW is an interesting one. The major problem remains software, battery tech and ai. They are so far behind not sure if they can catch up with Tesla.
Since the future of mobility will be very diverse and not the car we know now I cant see VW leading the pack in Software, AI or battery tech. The hottest talent in software/AI developers sit in the US and China not at VW/Germany
It’ll be a slow dying giant or mediocre electric vehicle manufacturer in 10-15 years. Don’t see any growth potential and massive risks.
It’s much harder to say of course because that outlook is 10-15 years away. If you take this article https://www.electrive.com/2020/07/22/vw-offers-modular-full-service-leasing-for-the-id-3/ the price per month will be £270 on certain terms, which is the same as a £200pm new 1L Polo. if you accept that petrol is £200 a month on top of that, £270 is a total steal as you can get unlimited electricity on certain tariffs for £10 a month. in this respect VW are well ahead of the competition, and this isn’t even the low end of the mass market.
The other factor to consider is subsidy in the UK. The German subsidy is €6k and ours is £3.5k, but due to be reviewed. If that review occurs and the uk government raises its subsidy it will be cheaper to buy a £25k EV than a £12k petrol.
I wouldnt count out VW or the established German brands as being behind with tech compared to Tesla. Trust me they are working behind the scenes with their tech for AI (Self driving cars) by parterning with larger tech firms to develop that kind of thing. Audi for one I know are doing this, hence why I would like FT to get VW the sooner the better. As I mentioned above, its a package deal with VW since they own many other car brands. If their sales go up, so does VW overall.
FT seems to like getting the super cars on here first like Aston Martin etc, but VW, Audi, BMW and Merc all sell more cars in a week than the super car brands do in a month.
Really really keen to see FT add VW to the app. Bit surprised this hasnt happened yet considering the number of stocks that seem unheard of that have been added. @FT please could this be added? Back them to do OK in the end given the vision and drive of Deiss
Freetrade has got access to UK and US exchanges only at the moment. Volkswagen is only listed on German exchanges, so it can’t be added at this time.
Agree, I asked earlier in the thread if any update from Freetrade on ETA for other European stock exchanges. Unfortunately no reply.
I imagine they might be waiting for Euro accounts which is soon.
Hope so, but has gone quiet which is a shame.
PeoplesThoughts on this one