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Daimler, Volvo, Traton to Build Electric Vehicle Charging Points

Daimler, Volvo, Traton to Build Electric Vehicle Charging Points


Daimler (DDAIF), Volvo (VLVLY), and Traton have agreed to team up to build electric vehicle charging points across Europe.

They plan to do so through a joint venture that would initially be capitalized with 500 million euros. The partners would contribute the money and own equal stakes in the joint venture.

The partners plan to sign the joint venture agreement by the end of 2021, with the goal of having it up and running in 2022. They plan to build a network of at least 1,700 charging points to be located near highways and other strategic landmarks. The stations will serve battery-powered heavy-duty trucks and coaches and be open to any brand.

The joint venture will be headquartered in the Netherlands. Once set up, Daimler, Volvo, and Traton plan to allow other partners to join them and expand the charging network.

Daimler and partners say their joint efforts address the need for high-performance charging. They see their efforts supporting truck operators with their shift towards a fossil-free transport solution.

“It is the joint aim of Europe’s truck manufacturers to achieve climate neutrality by 2050…we are therefore very excited to take this pioneering step to establish a high-performance charging network across Europe,” said Daimler Truck CEO Martin Daum.

Despite their cooperation to build electric vehicle charging infrastructure, Daimler, Volvo, and Traton say they will continue to compete in other areas. (See Daimler stock chart on TipRanks).

JPMorgan analyst Jose Asumendi recently reiterated a Buy rating on Daimler stock, with a price target of $118.61. Asumendi’s price target suggests 31.02% upside potential.

Consensus among analysts is a Strong Buy based on 13 Buys and 3 Holds. The average Daimler price target of $113.36 implies 25.25% upside potential to current levels.

TipRanks data shows that financial blogger opinions are 87% Bullish on DDAIF, compared to a sector average of 72%.

Source: PTI

Anand Gupta Editor - EQ Int'l Media Network