Volkswagen Stock: Shares Slump on Weak Earnings, Trade Concerns

Volkswagen's stock faced significant pressure on Wednesday, with shares dropping by 2.97% to €85.46 on the XETRA trading platform. The German automaker's disappointing third-quarter results were the primary catalyst for the decline, as earnings per share plummeted to €2.42 from €7.76 in the same period last year. Revenue also saw a slight decrease, falling to €78.48 billion. These weak financial figures, coupled with broader industry challenges, have led analysts to project a full-year 2024 earnings per share of €23.26 for Volkswagen.

Political Uncertainties Cloud Outlook

The automotive sector's mood has been further dampened by political factors, particularly the looming threat of potential tariffs in the United States. As one of Germany's largest car manufacturers, Volkswagen could be significantly impacted by such measures, adding to investor unease. The Lower Saxony state parliament, holding a 20% voting stake in the company, is responding to the crisis by debating a resolution that calls for new electric vehicle incentives and reduced electricity prices. These measures aim to bolster Volkswagen's position in the competitive electric vehicle market and address challenges in China and Europe.