Volkswagen AGVLKAY intends to manufacture 10 million electric cars (e-cars) by utilizing its new modular MEB platform, per Reuters. This is in sync with this German auto giant's target of starting the global mass production of e-cars toward the end of 2022.
Per the news, this auto giant will build vehicles of 27 models, using the MEB - or modular electrification kit - at its plant in Zwickau, Germany, late 2019.
Similar to other German automakers, Volkswagen is aiming at the mass production of electric cars as its rival in the United States,Tesla, Inc. TSLA is facing a lot of hardship to expedite the production of Model 3 - Tesla's first car, targeting the mass market.
In fact, after the breakout of the three-year-ago diesel emissions scandal, which badly tarnished Volkswagen's image, it set an ambitious plan to become a global leader in the electric vehicle market. The company plans to invest $7 billion in e-car production, which includes huge investment in its German plants at Braunschweig, Salzgitter and Kassel.
The company anticipates building 10 million Volkswagen group cars in the first wave only. However, it did not provide any time frame for that.
Over the past six months, shares of Volkswagenhave underperformed the industry it belongs to. The stock has declined 19%, wider than the industry's decrease of 9.7%.
Zacks Rank & Key Picks
Both Volkswagen and Tesla currently carry a Zacks Rank #3 (Hold). Volkswagen and Tesla have an expected long-term growth rate of 5.9% and 35%, respectively.
A couple of better-ranked stocks in the auto space are Fox Factory Holding Corporation FOXF and Allison Transmission Holdings, Inc. ALSN , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have soared 65.1%.
Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past two years, shares of the company have surged 47.6%.
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