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July 4th, 2022 | 12:20 CEST

Cars have a future - Here is how investors can invest: Mercedes-Benz, Altech Advanced Materials, Varta

  • Electromobility
  • Technology
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Mobility is a valuable commodity - despite high fuel prices. Studies show that Germans have continued to drive their cars since the end of February. For some, there is no other choice; for others, independence is too important. If demand for a product or service is so little dependent on price, this is known as low price elasticity of demand. For investors, this insight can be an important orientation that is worth hard cash.

time to read: 3 minutes | Author: Nico Popp

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

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    Mercedes-Benz: In a good position, but...

    Regardless of whether one sees mobility as the result of one's own vehicle fleet or subscribes to car-sharing ideas, people want individual transportation. Although the success of the 9-euro ticket shows that a mobility mix could also be the solution in the future, the car remains the only viable alternative on some routes. It is not just carmakers who now see it that way. The chip manufacturer Arm is currently planning its IPO and expects a lot from the business in the automotive industry. Many chips are already in cars today. If the visions of autonomous driving succeed, there will likely be even more and even more complex semiconductors installed in cars.

    Car manufacturer Mercedes-Benz firmly believes that the trend toward more and more driving assistants will culminate in autonomous driving - Mercedes-Benz is already well-positioned with its S-Class, for example, allowing autonomous driving in traffic jams. If you look at the job advertisements in the automotive industry, more and more IT specialists are in demand than classic engineers. Mercedes-Benz is also well positioned in electromobility and caused a sensation a few months ago with a long-distance test. This news was well-received on the stock market. But then came the energy crisis and the associated uncertainty surrounding the economic situation. However, since Mercedes-Benz is positioned in the luxury segment, the danger of dwindling sales should not be that great. But the stock is not a "must-have" at the moment.

    Altech Advanced Materials: Better batteries and flexible technology

    The Altech Advanced Materials share is much more of a must-have. Why? The stock has been rising for months against the negative trend and offers a revolutionary battery technology that is said to provide both performance and longevity. Recently, the Company placed an order to build a pilot plant to produce high-performance anode material. This material is key to bringing Altech technology to customers. A few months ago, Altech director Uwe Ahrens already stated, "Lithium-ion batteries have a variety of uses, and it is worthwhile to use this technology specifically. Even in e-cars, there are differences in different model ranges. We can see from the example of Varta that differentiation pays off. The Company has many internationally renowned customers, such as Samsung and Apple, because it is flexible and can manufacture high-quality products at low cost."

    Like Varta, Altech sees itself as flexibly positioned to meet various customer demands. The Company is not even afraid of price pressure in the industry: "We assume that e-cars will be better and cheaper than any fossil fuel vehicle. Thanks to our simple processes and the targeted application of our technology, we already have the potential to report the lowest costs. We can also respond to all developments in the industry. This is a good prerequisite for remaining competitive in the long term," says Ahrens. If Altech Advanced Materials succeeds in convincing customers and perhaps even attracting a major player, the Company's success story will likely continue for a long time.

    Varta: Living on its good reputation

    Varta shows that it pays to have a good reputation. The specialist for, among other things, button cells for hearing aids and consumer electronics has even convinced industry experts and competitors. Investors also think that customers like Apple and Samsung did not choose Varta for nothing. That is why they thought it was a no-brainer when the Company announced its launch in the field of electromobility. So far, however, not that much has happened around the hype topic. Goldman Sachs analysts expect the new business area to drive growth at Varta from 2025.

    Until then, a lot can happen in the competitive market. However, according to the analysts, Varta has a convincing existing business and is also considered attractively valued. Altech Advanced Materials, however, is likely to develop much more dynamically. Here there is potential for a revolution in battery technology - Varta and Daimler could also be interested in Altech's intellectual property. The share is speculative but has good arguments for becoming one of the winners of the changes in mobility.

    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

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