What happened to Volkswagen stock in 2008?
In October 2008, a short squeeze triggered by an attempted takeover by Porsche temporarily drove the shares of Volkswagen AG on the Xetra DAX from €210. One of the most dramatic short squeezes occurred with Volkswagen in 2008, when the company briefly became the world’s most valuable by market capitalization. A series of events, including Porsche’s unexpected announcement that it had increased its stake in Volkswagen, led to a panic among short sellers.If the price of the stock that’s being shorted goes up, the investors who short sell will lose money. Short sellers can theoretically lose an infinite amount of money because a stock’s price can keep rising forever.A short squeeze may occur when short sellers rapidly close their positions, which can help drive up a stock’s price. This typically follows a sudden increase in a stock’s price, prompting a rush among those shorting the stock to “cover” or close their position.Tesla short squeeze The short squeeze in Tesla Inc. It was triggered by a combination of factors, including a surge in demand for electric vehicles and the charismatic leadership of Elon Musk.
What was the short squeeze of Volkswagen stock in 2008?
On 28 October 2008, the price of Volkswagen common shares exceeded €1,000. The case aims to explain this apparent market distortion using rational arguments such as the tentative takeover of Volkswagen by Porsche and the role of derivatives, particularly delta hedging. Volkswagen AG has an annual dividend of $0.Volkswagen has a consensus rating of Moderate Buy, which is based on 4 buy ratings, 6 hold ratings and 0 sell ratings. The average share price target for Volkswagen is 112. This is based on 10 Wall Streets Analysts 12-month price targets, issued in the past 3 months.We think that VW stock looks like a decent value at current levels of about $10 per share. VW stock trades at just about 5x trailing earnings, which is even below U. S. Ford which trades at about 6x. The stock also has a thick dividend yield of close to 7%.
How high did Volkswagen squeeze?
How high did Volkswagen go in the short squeeze? The Volkswagen stock quadrupled in just two days, going from around €210. One of the most dramatic short squeezes occurred with Volkswagen in 2008, when the company briefly became the world’s most valuable by market capitalization. A series of events, including Porsche’s unexpected announcement that it had increased its stake in Volkswagen, led to a panic among short sellers.Volkswagen Shares Have Tumbled By 75% Since 2021 Peak The market’s reaction underscores investors’ apprehensions about Volkswagen’s ability to sustain profitability amid high investment demands, waning EV sales, and rising costs.Peak Price: By October 28, the stock had surged to an astonishing €1,005 per share, representing a nearly 400% increase in just two days. Brief Market Supremacy: At its peak, Volkswagen’s market capitalisation reached approximately €296 billion, briefly making it the world’s most valuable company.However, much like the GameStop short squeeze, after shares of Volkswagen peaked on Oct. While short sellers may have been right long term, risk management would not allow them to hold as the stock surged higher. They cut their losses and moved on.
Why is Volkswagen stock price so low?
Volkswagen’s third-quarter earnings missed expectations, pushing shares to a 24-year low. Europe’s biggest automaker faces rising costs, restructuring expenses, and slowing demand, particularly in China. Challenges in the EV market and regulatory pressures are straining profitability. Declining demand and EV transition hits VW Volkswagen is grappling with declining demand in several leading markets, including China. Rising interest rates and sluggish sales have weakened the company’s position, leaving it vulnerable to the economic slowdown affecting many global automakers.Volkswagen is grappling with mounting financial troubles, signalling a worsening situation in its global manufacturing operations. With two profit warnings in three months, the automotive giant faces falling EV sales, factory underutilisation, and tariff threats from China.The Financial Impact To address these challenges, the company implemented a number of measures, including cost-cutting measures and a restructuring of its operations. Despite these efforts, Volkswagen’s financial performance has yet to fully recover from the impact of the emissions scandal.By as early as 2030, it is planned that at least 70 per cent of Volkswagen’s sales in Europe will come from all-electric vehicles. In the US and China, the company has set itself the goal of achieving an electric share of more than 50 per cent in the same period.The main reason cited is weak demand for the company’s electric vehicles. However, I believe the situation is straightforward: it is increasingly difficult for VW and BMW to compete with cheaper, yet equally high-quality alternatives from Asia, where both labor and materials are less expensive.
How long did the VW short squeeze last?
Have you heard of the VW short squeeze of 2008? It lasted four days and fell 58% from its high. Hedge funds took weeks to recover from that. For those of you following the hype of GameStop the last number of weeks, it might have felt erringly familiar. This caused Volkswagen to become the world’s most valuable company in the market, reaching a capitalization of $370 billion in two days. The biggest short squeeze ever was the VW short squeeze in 2008. Between October 24 and 28 of that year, the share price recorded 376.
How high did VW stock go during the squeeze?
Peak Price: By October 28, the stock had surged to an astonishing €1,005 per share, representing a nearly 400% increase in just two days. Brief Market Supremacy: At its peak, Volkswagen’s market capitalisation reached approximately €296 billion, briefly making it the world’s most valuable company. Volkswagen had a tough go of things last year. The company’s sales fell by 10 percent in China, arguably its most important. Its other stronghold, Europe, was flat, with a shrinking overall car market that led to VW Group sales falling by 0.BMW versus Volkswagen: Quality, Reliability, Safety, and Value Retention Ratings: A comparison of BMW versus Volkswagen overall quality ratings shows Volkswagen with higher quality ratings in 3 out of 5 model comparisons. In terms of reliability ratings, BMW has the advantage in 4 out of 5 comparisons.The company warned of further “challenges” that will arise from “an environment of political uncertainty, expanding trade restrictions and geopolitical tensions,” among other factors. Volkswagen marks the latest in a string of major carmakers to announce billions in tariff-related losses.Volkswagen’s third-quarter earnings missed expectations, pushing shares to a 24-year low. Europe’s biggest automaker faces rising costs, restructuring expenses, and slowing demand, particularly in China. Challenges in the EV market and regulatory pressures are straining profitability.Volkswagen vehicles stand out not only for their engineering excellence but also for their ability to retain value, making them a smart choice for both new and used car buyers. By exploring their models with strong resale value, you get the assurance of a reliable vehicle that can provide returns in the future.
How many times has Volkswagen stock split?
Volkswagen ordinary shares (nominal value DM 100. DM 350. April 1961. Since then there were two stock splits. How much dividend does Volkswagen 2025 pay? According to the latest status from August 2025, Volkswagen paid a total of 18. EUR per share in dividends within the last 12 months. With the current Volkswagen price of 89. EUR, this corresponds to a dividend yield of 20. A dividend is paid 1 times per year.At the Annual General Meeting of Volkswagen AG, the shareholders followed the proposal of the Board of Management and Supervisory Board and resolved by a majority of 99,99 % to pay an increased dividend of EUR 9. EUR 9.Outlook for the year 2025 as of July 25, 2025 The Volkswagen Group expects sales revenue to be in line with the previous year’s figure (previously: increase of up to 5 percent). The Group’s operating return on sales is expected to range between 4.