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Mercedes-Benz: Wavering Performance And Limited Upside

Mar. 31, 2023 3:52 PM ETMercedes-Benz Group AG (MBGAF)F, GM, TM, TSLA, VWAGY8 Comments


  • Mercedes-Benz is struggling with its EV transition and faces pressure from Tesla, who is slashing prices.
  • On the other hand, Mercedes looks to be a market leader in Autonomous driving technology.
  • Economic conditions and China removing its subsidies will likely contribute to slowing or declining sales in 2023.
  • Mercedes' financial performance has been good, given the circumstances. COVID-19 has resulted in a sharp decline in demand, but Management has achieved improved profitability through efficiency gains.
  • Although we see a marginal amount of upside, 6%, we consider the stock a sell due to the qualitative factors mentioned.

detail side view of a mercedes benz AMG GT R, parked in the waiting area before leaving for the circuit. Supercar rally in Tarragona, Spain.

Karlos Garciapons/iStock Editorial via Getty Images


Mercedes-Benz (OTCPK:MBGAF) is a German automotive company. Mercedes develops and manufactures passenger cars in the premium and luxury segments, while also producing buses and EVs. Mercedes also provides ancillary services such as financing, parts, accessories, etc.

Data by YCharts

Electric vehicles, Mercedes benz, https://www.statista.com/outlook/mmo/electric-vehicles/worldwide

Unit sales - EVs (Statista)


EV producers (Bloomberg)

Autotrader, https://plc.autotrader.co.uk/press-centre/auto-trader-retail-price-index/

Second-hand market price development (UK) (Autotrader)

Mercedes financial

Q/Q Production and sales (Mercedes)


Mercedes Financials (1/2) (TIkr Terminal)

Mercedes Benz

Mercedes Financials (2/2) (Tikr Terminal)

Nissan Daimler Baic Kamaz Aston Martin IVU

Mercedes Benz Holdings (TIkr Terminal)

BMW Toyota Volkswagen BMW F GM

Comp comparison (Tikr Terminal)


Comp set valuation (Tikr Terminal)

This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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