TECH - Volkswagen Hits Brakes On Battery Unit Sale And IPO Amid EV Market Slowdown | Benzinga
Volkswagen AG (OTC:VWAGY) has decided to postpone the sale of a stake in its battery unit and its initial public offering (IPO) due to a slowdown in the electric vehicle (EV) market.
What Happened: The German automaker has put discussions with potential investors on hold and is no longer prioritizing the sale of its PowerCo business, reported Bloomberg on Tuesday. The company’s preference shares experienced a 1% drop following the announcement.
The decision comes amid concerns about VW’s ability to produce batteries at scale. The company is reevaluating its plans for the long-term funding of PowerCo, a unit set up in 2022 to challenge Tesla Inc. (NASDAQ:TSLA) in the EV market.
Despite the current setback, VW is still preparing for “investor readiness from 2024 onwards,” according to a statement to Bloomberg News.
Why It Matters: The EV market has ...