ID.4

Make
Volkswagen
Segment
SUV

Last month, we reported that the Volkswagen Group is on track to sell nearly as many electric vehicles as the leader, Tesla. In fact, VW is projected to overtake Tesla by the year 2025. With its ambitious electrification goals, VW needs to be able to have the cash at hand to invest in new technologies, and it appears that the company is investigating a way to do that.

According to Bloomberg, Volkswagen AG is looking into the possibility of a separate listing for Porsche. This move would have the additional benefit of improving the company's valuation. However, VW has not yet confirmed the listing of the highly valuable Porsche brand.

Other high-profile automakers have already made the move. These include Aston Martin and, back in 2015, Ferrari went public. Recently, Herbert Diess, CEO of the Volkswagen Group, cited Tesla as an example of a company benefitting from an upbeat market.

"A Volkswagen IPO of its Porsche brand would be a bold solution to generating much-needed shareholder value," said Intelligence analyst Michael Dean.

An analysis of the Porsche brand shows that it could have a value of around 110 billion euros. That's more than VW's own market value of around 90 billion euros - or $109 billion.

Sources indicate that if VW does move ahead with the Porsche listing, which won't take place before next year, VW will retain a majority stake. The Porsche listing could greatly accelerate a goal by Diess for VW to be worth 200 billion euros. Outside of EVs like the ID.3 hatchback (not sold in the US) and the ID.4 crossover, a bigger three-row EV crossover expected to be called the ID.6 could also be on the way - this model could theoretically take on the Tesla Model X.

VW is also making moves towards becoming a digital mobility provider, having teamed up with Microsoft for the development of self-driving technologies. With so much going on, the justification for listing a high-value company like Porsche makes sense. We'll know more when VW releases an official statement.