The prank was intended to highlight the launch of the company's new electric car, the ID. 4, as well as Volkswagen's plans for an all-electric future.
Ronny Hartmann / AFP via Getty ImagesU.S. representatives of German auto giant Volkswagen finally confirmed they will not be changing the division’s name to Voltswagen, swapping the “k” for a “t” to illustrate the company’s commitment to an all-electric future.
Initial reports of the name change surfaced on CNBC and USA Today after a news release appeared, then disappeared, on the Volkswagen (ticker: VOW. Germany) U.S. media website on Monday.
The release appeared again on Tuesday, saying “More than a name change, Voltswagen is a public declaration of the company’s future-forward investment in e-mobility,” adding “the new name and branding symbolize the highly-charged forward momentum Voltswagen has put in motion, pursuing a goal of moving all people point-to-point with EVs.”
Also Tuesday, however, German VW officials told The Wall Street Journal the name change was a joke.
Wednesday, U.S. Volkswagen officials confirmed what their German counterparts said a day earlier. The joke was in the “spirit of April Fools’ Day” and done to highlight the launch of the company’s new electric car, the ID.4.
The ID. 4 starts at about $40,000 and still qualifies for a $7,500 U.S. federal tax credit. A Tesla (TSLA) Model 3 starts at around $37,000. Tesla, however, has sold too many EVs to qualify for the tax credit. There is a cap for each auto maker on the number of EVs that can get the credit.
That cap might change, however, given that President Joe Biden is due to discuss his infrastructure spending plan in a speech in Pittsburgh on Wednesday. Tesla stock gained almost 4% in Tuesday trading, partly in anticipation of the event. The S&P 500 and Dow Jones Industrial Average, for comparison, both fell 0.3%.
Volkswagen shares did even better, rising more than 10% in overseas trading Tuesday. The EV joke might have played a role, but Volkswagen stock also caught a ratings upgrade to Buy on Monday from Jefferies analyst Philippe Houshois.
Tesla stock was up 0.6% in premarket trading Wednesday, while Volkswagen shares were 2.5% lower in German trading. Nasdaq Composite futures were up about 0.7%.
Write to editors@barrons.com
March 31, 2021 at 07:25PM
https://www.barrons.com/articles/forget-voltswagen-volkswagen-isnt-changing-its-name-51617193505
Forget Voltswagen. Volkswagen Isn't Changing Its Name. - Barron's
https://news.google.com/search?q=forget&hl=en-US&gl=US&ceid=US:en
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