Why Volkswagen's Era Might Be Coming To An End

Summary

• Volkswagen's stock has declined 17% since my initial "Sell" rating, underperforming the broader market by 38%.
• VW's falling sales in China, rising competition from Chinese EV automakers, and reduced demand are reasons for concern.
• Volkswagen's complex shareholder structure and political involvement hinder streamlined decision-making.
• Despite cost-cutting efforts and a joint venture with Rivian, Volkswagen faces loss of competitiveness, declining market share, and razor-thin margins, making the automaker a risky investment.

Teka77

Today marks a year since I covered Volkswagen AG (OTCPK:VLKAF) for the first time on Seeking Alpha, rating the stock a "Sell."

The first coverage has received a good number of commentary from fellow investors, who shared different viewpoints. Perhaps the

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.