Volkswagen (VW) Stock News: VW Dips on Tuesday Afternoon
VW Stock Price Falls on Market Correction
Volkswagen (VW) shares closed lower on Tuesday afternoon, as the broader market corrected. VW's preferred stock, VW vz, declined by 1.5%, closing at €171.50.
Factors Contributing to the Decline
Analysts attribute the decline to a combination of factors, including:
- Market correction: Global stock markets experienced a correction on Tuesday, with major indices such as the DAX and S&P 500 falling by over 1%.
- Profit-taking: VW's stock had risen by over 5% in the past month, leading to some investors selling their shares to lock in profits.
- Concerns over the chip shortage: The ongoing global chip shortage continues to affect the automotive industry, impacting production levels at VW.
VW's Financial Performance
Despite the recent decline, VW has reported strong financial results in recent quarters. In the first nine months of 2022, the company's revenue increased by 8.3% to €246.2 billion, while operating profit rose by 14.5% to €22.5 billion.
VW has also been actively investing in electric vehicles, with plans to launch several new EV models in the coming years. The company aims to become fully electric by 2033.
Analyst Outlook
Analysts remain generally positive on VW's long-term prospects, citing its strong financial performance, investment in EVs, and global presence. However, some analysts believe that the recent market correction and chip shortage could continue to weigh on the stock price in the short term.
