Worry About BMW’S Electric Blueprints

Article Image

Much like Mercedes-Benz’s plan to acquire an all-electric lineup over the next decade, BMW is on the path of enabling almost the same system as the corporation continues to follow through with its long-term electric plans. Other electric car companies seem to be initiating the same type of design whereas BMW hopes to stand out with their ‘traditional internal combustion engines (ICE). Even with their own specific design for the vehicles, investors for the new project have still been on edge if their blueprint will continue to bring in the same amount of profit, or more than competing companies. 

“While BMW keeps commenting that its BEV (battery electric vehicle) lineup will be fully competitive (we have our doubts about ICE-derived products like the iX3 or the upcoming iX1), we think skepticism of investors about the long-term approach may not fade anytime soon, despite financial performance remains strong. BMW’S under-representation in the important Chinese premium BEV segment, as well as the high share of PHEVs (plug-in hybrid electric vehicles which we consider a bridge technology that is at its peak already this year), limit the potential for a re-rating of shares, in our view,” an analyst from an investing company UBS stated to the representatives of the corporation. This statement caused a major dip in the company’s stock market standings. 

However, the organization is currently on an expected track of profit from anywhere between 7% and 9% in contrast to the firm’s initial 6% to 8% margin. Slowly increasing in profit as time passes and continuing the plan at a steady pace it seems as if only people employed at the BMW headquarters fully understand how they will conduct future business, while others take an estimated assumption on the profit decrease when entering the second 6-month period. BMW is understandably trying to stand out from the competition by physically crafting ideas their own way, but in order to persuade outside viewers looking in and current/potential investors, they need to reevaluate the format of their strategy and present it to the public in a different light. 

Leave a Reply

Your email address will not be published. Required fields are marked *