Volkswagen stock: Surprise for the analysts

Last Updated: 24. Januar 2024By

Perhaps at noon on Tuesday, you may have thought your screen had a glitch when you saw the 5 percent increase in the chart of Volkswagen’s preferred stock.

Analysts surprised by good news The Wolfsburg-based company reported a strong sales and revenue development for the fourth quarter of 2023 and the entire year in a conference call with analysts, which may lead to these analysts revising their previous estimates upwards. The bars on the far right of the graph are likely to be extended soon.

Company development Volkswagen preferred stock; Source: aktienscreener.com

Solid-state battery in the pipeline There is also good news in terms of battery technology. QuantumScape, a partner of VW’s PowerCo, has reached an impressive milestone with its solid-state battery technology. In the latest „stress test“, the battery cells significantly exceeded industry standards by retaining 95 percent of their capacity after over 1,000 charging cycles โ€“ an indication of a possible range of over 500,000 kilometers without significant loss of performance. Pilot production is planned for the end of 2024.

Downtrend broken The stock has been declining for a long time. However, after hitting a low point in October, there was a higher low, breaking the downtrend. Typically, after a strong candle on Tuesday, there may be a pullback to the yellow line. From there, you could start a long trade. For fine-tuning, also take a look at the intraday development.

Volkswagen preferred stock (ISIN DE0007664039) โ€“ 1 year in daily chart; Source: aktienscreener.com

Conclusion Volkswagen surprises in a difficult macroeconomic environment with good numbers! If the overall market plays along, long trades could become interesting!