Volkswagen: valuation moves into overtaking lane

{"text":[[{"start":12,"text":"Volkswagen is once again Germany’s most valuable public company. "},{"start":16.042,"text":"Shares in the carmaker this week climbed by almost a fifth, nearly regaining the pre-diesel scandal heights of 2015. "},{"start":22.709,"text":"Excitement was fuelled by more detail about its electric-car ambitions, including heavy investment in battery factories. "},{"start":28.964,"text":"It aims to be the global market leader by 2025 at the latest. "}],[{"start":33.379999999999995,"text":"It will probably overtake Tesla, the current market leader, well before that. "},{"start":37.983999999999995,"text":"But car sales are not the full story. "},{"start":40.364,"text":"The US company’s enterprise value is nearly twice that of VW. "},{"start":44.282,"text":"The premium stems from software. "},{"start":46.461999999999996,"text":"That is expected to account for almost half Tesla’s post-2025 operating profits, according to UBS. "},{"start":53.12899999999999,"text":"Analysts see an analogy with Apple’s ecosystem of products, services and software. "},{"start":58.02199999999999,"text":"VW takes the role of Samsung, a hardware producer. "}],[{"start":null,"text":"

"}],[{"start":62.61,"text":"VW does not accept it is an also-ran on automotive software. "},{"start":66.714,"text":"It believes Europe still has a rare chance to play a leading role. "},{"start":70.107,"text":"In any case, some of the value ascribed to software, notably relating to self-driving technology, is overhyped. "},{"start":76.599,"text":"Cars are more than just smartphones on wheels. "},{"start":79.279,"text":"Repair and service networks, where Tesla lags behind VW in Europe, are critically important. "}],[{"start":86.00999999999999,"text":"Charging time also matters greatly. "},{"start":88.502,"text":"VW — which like Tesla has ambitions to halve battery costs — has placed a bet on next-generation lithium-ion batteries. "},{"start":95.332,"text":"Drastic cuts in the time needed to charge the battery are promised by the Silicon Valley start-up QuantumScape, in which VW holds a stake. "},{"start":102.612,"text":"But there is still a lot to do to industrialise the technology. "}],[{"start":107.00999999999999,"text":"VW ordinary shares, fewer than a tenth of which are free floating, according to Barclays, have been ramped up as an indirect result of American depository receipts buying by enthusiastic retail punters. "},{"start":118.65199999999999,"text":"Even so the shares do not look expensive, priced at just under 10 times forward earnings. "},{"start":123.64399999999999,"text":"That is cheaper than those of GM, another traditional carmaker pushing hard into electric vehicles. "}],[{"start":129.72,"text":"VW has reason to cheer the rise in its share price. "},{"start":133.312,"text":"The higher value could make it easier to fund its electric vehicle ambitions. "},{"start":137.442,"text":"In its rivalry with US tech companies, VW understands that lofty valuations can bestow a competitive edge. "}],[],[{"start":145.06,"text":""}]],"url":"https://creatives.ftacademy.cn/album/35789-1616236752.mp3"}