Core Viewpoint - Volkswagen is adapting its electric vehicle (EV) strategy to address short-term challenges while maintaining a focus on long-term growth in the EV market [1][4]. Group 1: Current EV Market Landscape - Many large automakers have delayed or canceled their EV plans due to declining sales and rising lithium prices, but there remains optimism for the future of EVs [2][6]. - The percentage of consumers likely to buy a fully electric car has decreased from 25% in 2022 to 16% in 2025, while those unlikely to buy has increased from 51% to 63% in the same period [6][7]. Group 2: Volkswagen's Strategy - Volkswagen has scaled back its aggressive EV goals, reinvesting $64 billion into developing new gas-powered cars and delaying its next-generation EV architecture until the late 2020s [3][4]. - The company is exploring extended-range EVs, which combine an electric powertrain with a small gas engine to alleviate range anxiety and reduce costs [8][9]. Group 3: Financial Performance and Valuation - Volkswagen has shown steady growth with a revenue compound annual growth rate (CAGR) of 4.25% over the past decade and is currently valued attractively with a trailing-12-month price-to-earnings ratio of 7.6 [10].
One Top EV Stock to Buy in February
The Motley Fool·2026-02-07 09:38