According to Swiss banking giant UBS, electric vehicles will reach 100% market penetration by 2040. This means that in developed markets, gasoline models will be phased out almost entirely, while EVs will dominate. Volkswagen AG (OTC: VWAGY) is the world’s second-largest automaker behind Toyota and one of the best electric vehicle stock picks today. Automakers like Lamborghini, Bugatti, Bentley, Audi, and Porsche are all Volkswagen Group subsidiary companies.
Volkswagen already has an extensive electric vehicle lineup and is ahead of its peers. It is the dominant electric vehicle company in Europe and has around 25% of the electric vehicle market in China and nearby regions. The company has a larger manufacturing network and more automaking expertise than electric vehicle rival Tesla, which makes it the preferred pick for many cautious investors.
Electric vehicles are expected to reach manufacturing cost parity with gasoline vehicles by 2025, leaving automakers with little incentive to develop new gasoline models. Any investor wanting a piece of the future in the automotive industry should consider Volkswagen today. This pick isn’t just speculation. Volkswagen is consistently profitable and produces a dividend yield of 1.37%. A high-end target price of $36.19 suggests strong growth for the stock in the year ahead.
- 1 Year Price Growth: 43%
- YTD Price Growth: 90%
- 3 Month Price Growth: 20%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.