How did Volkswagen stock react to the quarterly report? | R Blog RU


The turn came to the German automobile concern Volkswagen AG to tell about its successes for the first quarter of 2021. How are things going with the sale of cars in Europe and Asia? Has the level of sales of electric cars increased? How did the shares behave after the report? We are sure you want to get answers to these questions. Then let’s get down to business without wasting time.

Volkswagen first quarter report

On May 6, the German automotive giant released financial data for January-March this year. It became known that 2.4 million cars were sold during these months. And if we compare with the indicators for the first quarter of last year, then we are talking about an increase of 21%.

It is important to note the increase in sales of electric cars: in the first three months of 2021, VW sold 133,000 electric vehicles. This is 100% more than last year’s statistics.

In addition, the sales rate of German cars in the Chinese market is impressive. Compared to Q1 2020, sales in the Middle Kingdom jumped by 61.4%. Analysts attribute such a noticeable difference to last year’s strict restrictions caused by the outbreak of COVID-19 and strict quarantines.

Important data from the report

  • Revenue – € 62.38 billion, + 13.3%.
  • Earnings per share – € 6.45, + 726%.
  • Net profit – € 3.41 billion, + 560%.
  • Operating profit – € 4.46 billion, + 554%.

Volkswagen Stock Technical Analysis

On May 6, after the financial data for January-March of this year were provided, the value of Volkswagen (VOWG) securities fell by 0.83%, to € 261.8. Today, at the time of preparation of the material, the direction of the course has changed: quotations added 0.61%, having risen to € 263.4 per share.

Analyst Maksim Artyomov’s opinion on the prospects for the concern’s shares:

“Against the backdrop of rising quarterly revenue, Volkswagen (VOW.D) shares continue to decline. On the daily chart, the last trading session ended in favor of sellers. From February to mid-March, quotations showed positive dynamics, but due to a sharp rise in prices, market participants began to take profit, which has led to a decline in the value of the stock, now the price remains above the 200-day moving average, which in turn increases the chances of a continuation of the upward trend.

The development of the trading situation can go in two ways. First: the quotes will continue to correct towards the € 220 mark and, having tested the support level, rebound to the € 300 resistance area. Second: the quotes will break the resistance line and head to the € 300 mark without continuing the correction.

In any case, the company is the leader in the production of cars and spare parts, so we can assume that the securities have every chance of continued growth in the short term. “

Latest news about Volkswagen

In late April, the US Securities and Exchange Commission (SEC) launched an investigation into the auto giant. The regulator is checking the legality of the manufacturer’s actions, which, as an April Fool’s joke, announced the renaming of its division in the States to Voltswagen. As a reminder, this news provoked a rise in the price of the company’s securities by 12.5%.

The information about the renaming seemed to many investors and experts quite relevant in the light of the March statements of the concern’s management about plans to conquer the electric car market. Yes, yes, we are talking about the promised supply of 1 million electric vehicles in 2021 and the creation of a network of six European battery factories by 2030.

Summing up the result

Volkswagen AG reported for the first quarter of 2021: revenue increased by 13.3%, and net profit – by 560%. Sales volumes increased by 21%, sales of electric vehicles – by 100%. The Chinese market was generally pleased with the sales growth of 61.4%.

However, the market reacted to the automaker’s quarterly report by lowering its quotes. Yes, insignificant, but still noticeable against the background of such impressive statistics.

What else to read about car maker promotions on the R Blog?


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