Volkswagen’s DAX-listed assets are under some pressure on Friday.
On XETRA, the VW share price temporarily fell by 0.64 percent to 86.80 euros.
According to one trader, the lack of US tax breaks could be a burden. He referred to a report by the Bloomberg news agency that some electric vehicles from manufacturers such as Volkswagen or Stellantis in the United States will no longer be on a list for tax credits when purchasing certain vehicles because the rules for them have become stricter. Stellantis shares also temporarily lost 3.75 percent to 12.152 euros on EURONEXT in Paris.
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Stellantis minus shapes the auto sector – US tax advantages in view
The recent downward trend in the European auto sector continued on Friday. The Stoxx Europe 600 Automobiles & Parts industry index lost 1.3 percent and returned to its pre-Christmas level. Large parts of the recovery until mid-December have been lost.
The direction in the sector was set by Stellantis shares, which fell by more than three percent on the stock exchanges in Milan and Paris on Friday. But the shares of German car manufacturers are still unable to reverse their recent downward trend. Volkswagen’s preferred shares listed in the DAX recently fell by 0.4 percent. At times the decline was up to 1.4 percent.
According to a trader, the lack of US tax breaks is an issue for the industry. He referred to a report by the Bloomberg news agency that certain electric vehicles from manufacturers such as Volkswagen or Stellantis in the USA will no longer be on a list for tax credits in the future because the rules for them have become stricter.
According to the report, subsidies for vehicles like Volkswagen’s ID.4 will be eliminated this week. According to the report, a tax advantage of $7,500 will be lost for the Wolfsburg-based electric flagship model. The reason why the list of vehicles eligible for funding has shrunk from 22 in the previous year to just 18 models was stricter requirements, for example for the procurement of battery parts and raw materials.
The news comes at a time when European manufacturers are already having to prepare for headwinds in the USA. They are preparing for the upcoming inauguration of Donald Trump as US President, which is on the agenda on January 20th. With a protectionist stance, Trump is threatening additional tariffs on cars manufactured abroad.
Tesla was a major beneficiary of Trump’s policies on the stock market for weeks, but has recently come under pressure. Disappointing sales figures gave investors a cold shower the day before. As the Bloomberg report continues, Tesla’s Cybertruck appears on this list of tax benefits. However, this did not result in a significant recovery of Tesla shares in pre-market US trading, after the shares have now fallen by almost 24 percent from their record high in December.
FRANKFURT (dpa-AFX)
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