Close menu

July 16th, 2021 | 14:02 CEST

BYD, EuroSports Global, VW - Electric mobility booming

  • Electromobility
Photo credits:

Automakers enjoyed their best first quarter in 10 years. One reason for this is the growing number of registered electric cars. If you compare the first quarter of 2020 in Germany with 2021, you can see an increase of 173% in the registration of e-cars, and there is no end in sight. However, more e-cars are not only being sold in Germany; but sales are also increasing worldwide. According to Handelsblatt, if the boom continues, there will be a shortage of millions of battery cells for production. The current industry leader, Tesla, still leads the ranking with the most e-cars delivered by brand, but the competition is catching up. Therefore, we take a look at three companies from the e-mobility segment.

time to read: 4 minutes | Author: Armin Schulz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , EuroSports Global | SG2G55000001 , VOLKSWAGEN AG VZO O.N. | DE0007664039

Table of contents:

    Terry Lynch, CEO, Power Nickel
    "[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel

    Full interview


    BYD - Independence is the trump card

    BYD has evolved from a battery manufacturer to a major player in e-mobility. The Company's advantage lies in the fact that it has both battery production and manufactures the chips itself for cars. This independence is likely to be the envy of the competition, given the current chip crisis. On June 30, the Company filed an application for a spin-off for the semiconductor division "BYD Semiconductor" with the Shenzhen Stock Exchange.

    The Group publishes its sales figures monthly, and they were again very convincing year-on-year. Passenger car sales figures in the hybrid and e-car segments more than tripled. Sales of commercial vehicles with e-drives also rose by 13%. If we take the entire half-year as a comparison, 159% more passenger cars and 35% more commercial vehicles were sold. The trend is expected to continue, especially as the Company tries to gain a foothold in Europe for the first time.

    The stock broke its downtrend on June 1, rising from 140 Hong Kong dollars (HKD) to HKD 240. Even the sales of Cathie Wood at the end of June could not stop the upward trend. Most recently, the stock weakened somewhat as Himalaya Capital dumped over 10.7 million shares on the market. After a 70% rally, there may well be a setback. Since June 17, the stock has been in a sliding zone between HKD 205 and HKD 240. Should the zone be exited to the downside, the next support level is at HKD 186.

    EuroSports Global - On the way to becoming an e-motorcycle manufacturer

    EuroSports Global is based in Singapore. Its original business is the distribution of luxury sports cars. Together with its 75%-owned subsidiary Scorpio Electric Ltd, the Company has established another business, the production of electric motorcycles. Instead of dealing with a lot of competition in e-cars, it is taking on two-wheelers. A smart move, considering that 65% of all motorcycles in the world are ridden in Asia. Technology, design and performance are the values according to which the first Scorpio X model has been designed. The launch of the first models is scheduled for the end of the year.

    Compared with competitors such as Vespa or NIU, Scorpio scores in terms of speed and range. In terms of design, it also stands out clearly from the competition and is strongly reminiscent of a futuristic motorcycle, in contrast to the scooter design of the other manufacturers. As an add-on, the motorcycle can be started via an app. It offers data on the vehicle status, can locate the vehicle and send a notification to emergency contacts in case of an accident. Information is collected and analyzed using artificial intelligence. In the event of danger, the driver can thus be notified, the vehicle status is monitored, and ultimately the performance is to be optimized depending on the route to get the most out of the two-wheeler.

    The secure core business with the luxury car trade can help finance the development. Due to the lockdown, luxury car sales were temporarily at zero. The market for e-motorcycles is expected to grow to USD 12 billion by 2025, and EuroSports Global wants a piece of that. The market capitalization is around SGD 67 million. Those who want to get involved in the e-motorcycle sector early have an opportunity here.

    VW - Synergies through a platform approach

    On July 13, CEO Herbert Diess presented the new Group strategy under the slogan: New Auto. The Group's boss reiterated that VW intends to push ahead with its transformation into a software-driven mobility company with all its might. The focus is on becoming the world market leader in electric vehicles. In addition, the Company wants to be climate-neutral by 2050. The interim targets for 2030 are a 30% reduction in CO2 emissions and zero-emission vehicles by 2040.

    By 2025, the Company aims to generate 1% more profit than before from sales. It is hoped to achieve an EBITDA of 8% to 9%. That should be realized through the shift to more e-cars, as margins are higher here. CFO Antlitz said, "We will scale our BEV platforms, we want to develop a leading automotive stack, and we will continue to invest in autonomous driving and mobility services". That aptly describes the four business areas of the future.

    With the major upheaval in the automotive industry, VW wants to establish as many synergies as possible between the different brands and product areas via a common platform. Looking at the share, it was unable to keep pace with the DAX. It was not granted a new high. Currently, it has formed a double bottom at around EUR 198 and has pushed off there. Unless this mark breaks, the high from June should be tested. Both JPMorgan at EUR 245 and RBC with a target price of EUR 300 see the share's value significantly higher.

    All three companies operate in a growth market that offers many opportunities. BYD and VW are fighting against Tesla, currently still the benchmark in the automotive market. VW has considerable market power with its Group, whereas BYD is still small but can already operate independently. EuroSports Global occupies a smaller niche, but motorcycles are in high demand in Asia, and there is no top dog in this segment that needs to be displaced first.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author

    Related comments:

    Commented by Armin Schulz on February 26th, 2024 | 07:00 CET

    Plug Power, First Hydrogen, Daimler Truck - Hydrogen: the game changer in transportation

    • Hydrogen
    • Electromobility
    • fuelcell
    • Batteries

    The rapid development of electromobility has undoubtedly brought many advantages. However, there are some questions regarding its suitability for use in commercial transportation. The issues concerning the weight of the batteries, the long recharging time, and the limited range cannot be ignored. In view of these facts, it is questionable whether electric vehicles can completely replace diesel fuel in commercial transportation. There is a need for further technological advances, such as hydrogen propulsion. Although hydrogen has not yet received the same level of attention as electric vehicles, its potential suggests that it can solve the current problems.


    Commented by Fabian Lorenz on February 21st, 2024 | 07:00 CET

    Top news: BYD, Bayer and Globex Mining

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • chemicals

    Bayer shocked investors yesterday with the announcement of its dividend cut, which shouldn't have been much of a surprise. The Company is burdened with high debt, endless legal fines, and an empty pharmaceutical pipeline. In an initial reaction, analysts have lowered the share price target. BYD, on the other hand, is doing well operationally. Only the share price is not picking up. Will a share buyback turn the share price around? For those who want to profit from the commodity boom with reduced risk, then Globex Mining's stock is attractive. The news flow is strong, and those who act quickly can still register and follow the live presentation of the mining incubator at the 10th International Investment Forum, IIF, today.


    Commented by Armin Schulz on February 20th, 2024 | 07:45 CET

    ThyssenKrupp Nucera, dynaCERT, Plug Power - Hydrogen Stocks: Buy or Wait?

    • Hydrogen
    • Electromobility
    • greenhydrogen

    In light of global efforts to reduce CO2 emissions, hydrogen is coming into focus as a promising alternative in the transportation sector. The quick refueling times and greater ranges of hydrogen are particularly enticing, potentially solving the challenges of electromobility. Fleet operators must also become active, especially in response to the savings demanded by the government. Despite the clear potential for more sustainable mobility, hydrogen companies currently find themselves in a challenging situation on the stock markets, plagued by market uncertainties and the challenges of a nascent technology. Today, we look at three companies whose business is based on hydrogen.