The German company’s share has risen about a quarter this week after the company announced its plans for electric car production.
German the share of carmaker Volkswagen has risen so sharply this week that German financial supervisor BaFin has begun to monitor the situation.
The value of the company’s share listed on the Frankfurt Stock Exchange at the end of last Friday was EUR 230.8. On Thursday at 4.30 pm, the share price was hovering around 325 euros. The share has thus strengthened by about 40 percent in less than a week. It is an exceptionally hard rise in such a short time.
Earlier this week, Volkswagen announced its plans to become the market leader in electric cars. This week is becoming one of the best shares in the company’s history.
The company’s stock rose a maximum of 9.0 percent on the Frankfurt Stock Exchange on Thursday morning. The rise in the stock eased after BaFin said it was monitoring the development of the stock.
Volkswagen said Monday to build six battery plants in Europe and to greatly expand the charging infrastructure for electric cars. On Tuesday, the company said it would invest € 46 billion in electric and hybrid cars over the next five years.
Volkswagenin target to challenge American rival Tesla has raised its stake in the German company by more than 50 per cent this year.
The price increase has increased Volkswagen’s market value by approximately EUR 130 billion. As a result, the company has become the most valuable company in the Frankfurt DAX index.
Volkswagen shares rose 4.9 percent in the afternoon in Frankfurt. This week, its share price has risen by about a quarter.
The Volkswagen stock has attracted interest, especially among U.S. private investors, according to Barclays Bank in its review.
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