The Bentley has a famend 100-year historical past as a premium model, however the firm itself has truly been owned by Volkswagen (OTCMKTS: VWAGY) since 1998. Its first all-electric car is aiming for manufacturing by 2025 earlier than the high-performance model completes its absolutely electrical transition by 2030.
Why is Bentley going electrical?
Decarbonization of its fleet is a precedence for the Volkswagen group over the following a number of years, and given Bentley’s high-performance capabilities, it contributes considerably to CO2 emissions. Whereas it solely makes up a small share of the general enterprise, it’s nonetheless a significant and rising phase that produced greater than 14,600 automobiles in 2021, which was a 31% enhance year-over-year (YoY).
Volkswagen’s EV benefit
Bentley is Volkswagen’s prestigious model, but it surely’s simply one of many many badges that make up Volkswagen’s numerous product portfolio along with Audi, SEAT, Skoda, Bugatti, Lamborghini, and Porsche, in addition to the corporate working its personal line of economic automobiles, campers, vehicles, and buses.
And that’s precisely the place Volkswagen’s aggressive benefit lies with regards to the electrical car race.
The corporate produced greater than 8.8 million automobiles in 2021, an absolute monstrous quantity in comparison with Tesla’s figures which have been roughly one million. Volkswagen elevated battery electrical automobiles produced by 96% year-over-year (YoY) in 2021 too. It’s the EV chief in Europe, it takes the quantity 2 spot in North America, and it greater than quadrupled EV gross sales in China over the course of the 12 months, so it’s ticking all of the containers, regardless of the legacy automaker tagline.
Is Volkswagen EV funding?
There’s a transparent benefit in its distribution community and diversified car portfolio, however there’s nonetheless some catching as much as do in autonomy and software program. That being stated, 50% of all automobiles being completely electrical is the purpose for 2030, a $4.5 billion funding has been made in digitalization, and the corporate intends to roll out autonomous expertise capabilities throughout three continents by 2025.
Volkswagen is a reminder of some ideas of investing. It isn’t nearly shopping for strong corporations, it’s about not overpaying corporations. Evaluate Volkswagen’s market capitalization to one of many newer EV startups which have little to no gross sales generated, and it’s fairly apparent which funding will possible yield larger returns over the long term — and Volkswagen has one other factor they don’t — a 2.75% dividend yield.