Reddit traders are pouncing on VW shares as the automaker closes its EV gap with Tesla

Reddit

  • Investors are keen to acquire Volkswagen stocks after a new plan renewed interest in the company.
  • Volkswagen announced its intention to rival Tesla and hugely expand its provision of electric cars.
  • Social media stock trading sites are increasingly eyeing up Volkswagen stocks, Reuters reported.

In January and February, Reddit usersupended the stock market by driving shares of video game retailer GameStop to astronomical highs with shares skyrocketing more than 1,200% in January alone.



Users of the subreddit WallStreetBetsalso pushed up the prices of AMC theaters and several fading companies. Earlier this month, they even spent hundreds of thousands of dollars adopting gorillas.

Investors now have a new target and are trying to secure Volkswagen stocks, Spiegel reported.

A month ago, stocks cost $202 but the current price is $285.

Shares have also rallied this week after Volkswagen unveiled its plans to overtake Tesla as the world’s largest electric car manufacturer.

At one point on Wednesday, they reached $346, their highest value since November 2008.

Volkswagen has received a great deal of attention on stock trading social media sites like Stocktwits, according to Reuters.



Messages referencing its US listing surged more than 70%, although it did not gain much traction on WallStreetBets.

Analysts led by Jose Asumendi at JP Morgan said that Volkswagen was becoming “a serious contender to Tesla,” with stocks surging as much as 16%, Bloomberg reported.

UBS analysts said Volkswagen would sell 300,000 more battery-electric cars than Tesla by 2025, according to CNN.

This suggests that Volkswagen group CEO Herbert Diess‘s goal of beating Tesla will succeed.

Volkswagen outlined plans for its electric expansion at its “Power Day” event on Monday, including adding around 3,500 fast-charging points to its Electrify America network in the US and Canada this year.

Like Tesla, it will also invest in building gigafactories.

In January, Elon Musk’s company was selected to receive billions in funding from the German government for a gigafactory just outside Berlin.

 News source