Volkswagen Decided To Shift Its Focus On Building Electric Cars Which Might Increase Problems For Tesladate_range
When it comes to the automobile industry, it has always been a profitable business when everything was right. Now due to lots of competition, many big companies are trying to shift their core focus. Accordingly to German car producing company Volkswagen has decided to build at least 70 electric powered cars by the end of 2025. On Tuesday shares of Volkswagen fell by more than two percent, but still investors of it always have to look at the company’s future from a different angle. Currently, due to the falling of prices in fuel, many cars producing companies are not recording any profit, and that’s why the future of fuel based car industry looks doomed.
If we look into Volkswagen financial performance, then the company didn’t do anything right from the last few years also shares of Volkswagen dropped by seven percent last year solely. Top executives said recently that more than 25% of total new produced vehicles will be electric powered. Investors of Volkswagen are already not happy with its decision because they think electric based cars are not that much profitable since many other companies haven’t recorded any significant profit. The fuel based car industry is getting pressure significantly, and that’s why big companies like General Motors, Ford also trying to shift their core focus building electric powered vehicles.
Tesla inc is the only company which is currently dominating this industry also except its last two quarters earlier it never booked any single amount of profit. So investors concern might be real since Volkswagen will have to burn a considerable amount of money to enter into this new market which is nothing but an extra burden. Tesla might be enjoining its monopoly over the EV industry, but soon they will be receiving a massive amount of competition from these well-established companies.