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$TSLA: Volkswagen EV Business Worth $230 Bln, Can Surpass Tesla Sales Next Year

Electric Volkswagen AG Automobiles in the Automaker's Delivery Towers Ahead of Earnings

Photographer: Liesa Johannssen-Koppitz/Bloomberg

Volkswagen AG should keep getting more credit for its battery-powered car strategy that could lead the company to surpass Tesla Inc. in electric-vehicle sales as soon as next year, according to Deutsche Bank.

If the market were to apply multiples similar to Tesla and Nio Inc. to VW’s battery-electric vehicle business, it would be worth about 195 billion euros ($230 billion), more than all of the company is worth now, analysts led by Tim Rokossa wrote in a report Monday. They lifted their price target for VW shares by 46% to 270 euros.

VW’s common stock surged as much as 14% and its preference shares rose as much as 8.4% in Frankfurt, while its American depositary receipts climbed in New York. Last week, the German-traded securities climbed 22% and 16%, respectively.

The carmaker stole software giant SAP SE’s crown as the largest member of Germany’s benchmark DAX index, becoming the country’s most valuable company for the first time since the 2015 diesel cheating scandal damaged its reputation and stock price. Its plans to take on Tesla for EV leadership set off a buying spree among U.S. retail investors and surge in trading volume for its ADRs.

VW's electric-car efforts didn't help it ride the past year's tech stock rally

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