AJ Investment Research@alojoh
News: VW slashes prices on the ID.3, its fully electric 'Golf', by $7,997 / €7,140 or 14% to 19%!!!
VW lowered the MSRP from October 1, 2024 and added a promotion. Combined, this drives a 19% price reduction on the entry level trim and nearly 14% reduction on the top trim.
Below is an example from Germany, the ID.3's most important market.
After a model refresh earlier this year, the ID.3 saw encouraging sales momentum but this didn't last long. You can see in the attached chart how sales dropped off a cliff after the June sales month. To my knowledge, this was not driven by supply challenges.
The chart shows the sales trend in Germany, the market in which the ID.3 should sell the best. This implies that ID.3 likely underperforms elsewhere too.
I warned earlier this year that something wasn't right when VW had suddenly changed its over a decade old disclosure practice and eliminated certain monthly sales disclosure. In my over 20 years of analysing companies, a company cutting back on disclosure was NEVER an arbinger of good news but nearly always an arbinger of bad news. VW's last few quarter performance and developments proved that this was a signal one should have paid attention to. It's exactly these breadcrumbs which can give you an edge in financial markets.