Volkswagen as the Next Tesla Is Firing Up Stock Investors
- VW shares benefit from investor embrace of EV strategy
- Furious rally sparked a huge divergence in two share classes
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What a month for Volkswagen AG: The shares have soared the most in more than a decade and along the way its two classes of stock have gotten seriously out of whack, resurrecting memories of one of the biggest short squeezes in history.
The stock started taking off last week as investors bought into the Germany company’s plan to supplant Tesla Inc. as the global leader in electric cars. Chief Executive Officer Herbert Diess made a series of announcements on his strategy to beat his California-based rival, emulating his counterpart at Tesla, Elon Musk. In return, VW common shares picked up a bit of Tesla’s cult status, soaring 60% so far this month.