12 Biggest EV Stocks In the World Heading into 2025

8. Volkswagen AG (OTCPK:VWAGY)

Number of Hedge Fund Holders: N/A

Market Capitalization: $46 billion

Volkswagen AG (OTCPK:VWAGY) manufactures and sells automobiles from 114 production sites across Europe, the Americas, Asia, and Africa and sells vehicles in over 150 countries. The company develops, produces, and markets cars, commercial vehicles, motorcycles, engines, EVs, and vehicle software, along with providing financing, leasing, insurance, and mobility services.

In recent days, Volkswagen has been facing major problems as its CEO Oliver Blume highlighted the need for significant cost reductions in Germany, where labor costs are twice the European average. While group sales and new product demand are strong, high costs have led to a 20% drop in operating profits over nine months. Past missteps, including €32 billion spent on the diesel scandal and delays in electric vehicle development, have further strained the company.

The company also faced another crisis as thousands of workers protested against potential factory closures, job cuts, and wage reductions of up to 18%. However, the company has finalized the “Zukunft Volkswagen” (Future Volkswagen) agreement with IG Metall and its Works Council to restructure operations and reduce costs, as reported by Reuters. The plan includes cutting labor costs by €1.5 billion annually and achieving total savings of over €15 billion per year through measures such as reducing production capacity by 734,000 units across German plants. This adjustment aims to enable investments in future products and achieve the Volkswagen Passenger Cars brand’s return-on-sales target.

Volkswagen Commercial Vehicles and Group Components will focus on cost efficiency, with targeted labor cost reductions and flexible working models. The agreement aims to position Volkswagen as a leading global volume manufacturer by 2030 while ensuring the sustainability of its German operations.