Volkswagen ( VLKAY ) plans to roll out electric trucks and buses in a few years, as Tesla ( TSLA ) puts off an unveiling of an electric semi-truck that was set for this month.
[ibd-display-video id=2350024 width=50 float=left autostart=true] The German carmaker's truck and bus unit said Wednesday that it will invest 1.4 billion euros, or $1.7 billion, on electric drives as well as autonomous vehicles and cloud-based systems.
Volkswagen and affiliated heavy-truck maker Navistar International ( NAV ) are targeting the debut of a medium-duty electric truck in North America by late 2019 or early 2020. Volkswagen bought a stake in Navistar in 2016.
The announcement follows Tesla's recent decision to push back the launch of the Tesla semi-truck to November as it grapples with production bottlenecks on its mass-market Model 3 electric sedan.
Volkswagen stock closed up 1.4% at 35.37 on the stock market today , pegging a fresh 52-week high. Shares have now advanced 3% from a 34.22 buy point off a cup base since their Sept. 22 breakout. Tesla stock eased 0.3% in Wednesday trade as it continues to test the 50-day moving average following a failed September breakout from a 370.10 buy point.
Among other auto stocks, General Motors ( GM ) nudged up 0.6% to 45.47 and is well extended past a 36.73 saucer-with-handle buy point. Ford Motor ( F ) dipped 0.1% to 12.38 as it eyes a 12.56 entry from a double-bottom base. Fiat Chrsyler (FCAU) edged up 0.9% and is now extended 53% from a July breakout past 11.75. Toyota Motors (TM) eased 0.4% but is still within buy range following its breakout Tuesday.
IBD'S TAKE: General Motors stock has an IBD Composite Rating of 93, meaning GM has outperformed 93% of stocks in the recent past. Here is a list of stocks, like GM, with Relative Strength lines making new highs .
Another German automaker, Daimler (DDAIF), has also committed to electric trucks and buses, introducing last month what it described as the first fully electric light-duty truck in the world .
"Until just a short while ago, the use of all-electric drive systems in trucks seemed unthinkable - above all because of the high costs for the batteries, coupled with a limited range," Daimler said, while making the announcement. "Technology has now moved on significantly."
Vehicle makers are betting big on fuel-efficient cars, as nations around the globe ramp up efforts to combat polluted cities by eliminating traditional fossil-fuel cars.
China, the top auto market in the world, recently said it will ban the sale of gasoline- and diesel-powered cars at an unspecified date. Meanwhile, it's calling for 1 out of every 5 cars sold in China to run on alternative energy by 2025.
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