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Last week, BMW's stock prices fell around 5 percent, bringing a small shiver amongst big players on the stock market, especially those interested in the auto industry.
Of course, a 5 percent drop is not worrying for a company this big, that was really stable over the years, showing impressive growth. However, for people used to having their income on the rise, it might bring about some interesting questions.
Is this due to the heavy investments in EV technology, mainly the i3 and i8? It could be and Arndt Ellinghorst, head of automotive research for brokerage house International Strategy & Investment, seems to think so, in an interview for Bloomberg Television.
"They are spending more than a billion euros on the i brand, taking a huge bet. I think that the market should appreciate that, but you see what happened today. The stock is being slashed 4 percent because the company is spending more on electric vehicles," he said.
The main problem, according to him, is that German consumers are still reluctant towards EV cars from BMW. However, he forgets that Germany is no longer the main interest of BMW and that markets such as USA and China are the main areas of concern now.
Furthermore, reporting over 8,000 pre-orders for the i3, you can hardly call it a failure. With Chinese anti-smog legislation tightening even more in the following months, we're sure the i3 will become a rapid-selling vehicle, putting all the investors' minds at ease.
Is this due to the heavy investments in EV technology, mainly the i3 and i8? It could be and Arndt Ellinghorst, head of automotive research for brokerage house International Strategy & Investment, seems to think so, in an interview for Bloomberg Television.
"They are spending more than a billion euros on the i brand, taking a huge bet. I think that the market should appreciate that, but you see what happened today. The stock is being slashed 4 percent because the company is spending more on electric vehicles," he said.
The main problem, according to him, is that German consumers are still reluctant towards EV cars from BMW. However, he forgets that Germany is no longer the main interest of BMW and that markets such as USA and China are the main areas of concern now.
Furthermore, reporting over 8,000 pre-orders for the i3, you can hardly call it a failure. With Chinese anti-smog legislation tightening even more in the following months, we're sure the i3 will become a rapid-selling vehicle, putting all the investors' minds at ease.
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