10 Most Oversold EV Stocks to Buy According to Analysts

4. Volkswagen AG (OTC:VWAGY)

% Decline Over 1 Year: ~28.6%

Average Upside Potential: ~58.5%

Number of Hedge Fund Holders: N/A

Volkswagen AG (OTC:VWAGY) is engaged in manufacturing and selling automobiles. Citi analysts reiterated a “Buy” rating on the company’s stock. The optimism stems from discussions regarding government support for the broader European auto industry, which can erase some of the financial pressures from stringent car emissions standards. Germany proposed new EU-wide incentives for BEVs. Olaf Scholz, the German finance minister, hinted that the EU has been preparing a bloc-wide incentive plan for EVs. Such measures can reduce the net cost of BEV regulation to Volkswagen AG (OTC:VWAGY), supporting the company’s outlook.

Citi opines that such developments are expected to offer a much-required boost to the broader European auto industry, and by extension, to Volkswagen AG (OTC:VWAGY). Therefore, the reiteration of the rating demonstrates confidence in the company’s growth prospects. It published the deliveries for October to December 2024. Notably, BEV order bank in Western Europe came in at ~170,000 vehicles, partly fueled by new models like the VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric.

Charging, energy, and a sustainable energy supply infrastructure for all-electric vehicles remain critical prerequisites for accelerating the transition to battery-electric mobility. By 2025, Volkswagen AG (OTC:VWAGY) and its partners plan to create ~45,000 high-power charging points in Europe, China, and the USA. Therefore, higher EV adoption, investments in battery technology and charging infrastructure, and government support are expected to strengthen Volkswagen AG (OTC:VWAGY)’s position.