Electric car funding freeze: Which stocks are now lucrative for investors?

Electric car funding freeze: Which stocks are now lucrative for investors?

According to a report by www.stern.de,

The article sheds light on the price war between car manufacturers after the environmental bonus for electric cars was abolished and provides an overview of the lucrative stocks of car manufacturers. German car manufacturers have already recorded slight price losses after the end of the environmental bonus. VW and other manufacturers have now announced that they will compensate for the loss of the bonus with discounts.

This move shows that automakers are striving to maintain demand for electric cars. Buyers can benefit from generous discounts and at the same time manufacturers are looking for ways to secure their market share. However, the growing competition in this area and the possible price war could influence the prices of car manufacturers.

The Chinese brand BYD is considered an up-and-coming competitor that is traded as a buy stock with an estimated return on sales of six percent and a moderate price-earnings ratio. Tesla, on the other hand, although with a higher return on sales, has a significantly higher price-earnings ratio and is viewed as highly valued - an investment in Tesla therefore remains speculative.

In Germany, Tesla and VW are among the most popular electric car manufacturers, with VW leading the way with a higher market share than Tesla. However, a price war could hurt VW's margins at a time when the company is struggling with a high debt burden and the ongoing transformation into an electric car company.

Overall, these developments could create uncertainty in the market and influence investment decisions regarding automaker stocks. The financial stability, growth prospects and competitiveness of these companies will be of particular interest in the coming months.