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Summary
- UK-based luxury auto major Aston Martin announced its plans to produce electric sports car and sports utility vehicles in the UK in 2025.
- The market has cheered the EV pivot, with Aston Martin’s shares trading up by over 2 per cent in early trading on 9 March, following the news.
UK-based luxury automobile manufacturer Aston Martin Lagonda (LON: AML) announced its plans to produce electric sports car and sports utility vehicles in the UK from 2025. Following the announcement, the market cheered the all-electric pivot, with shares rising around 3 per cent in early trading. Last month, the company’s stock prices have fallen by over 9 per cent after posting FY 2020 losses and high interest payments.
EV shift
CEO Lawrence Stroll said the electric powered sports car and SUV will be manufactured at Gaydon in England and St Athan in Wales and could utilise Mercedes-Benz based technology, according to the Financial Times. Mercedes-Benz’s parent company Daimler AG (ETR: DAI) owns a 20 per cent stake in the company.
Want to know more? Do watch: Mercedes-Benz to increase its stake in Aston Martin upto 20%. | Kalkine Market Update UK |
Post Brexit, the carmaker is struggling to attract new investment. The FTSE 250 listed company plans to launch a mild-hybrid model of its DBX sports SUV in Q3 2021, while its plug-in hybrid version is expected to debut in 2023 prior to launching the all-EV range. Stroll, who has a 22 per cent stake in the company, now wants the brand should earn some profits after he pumped in $740 million in 2020 to save the company.
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Stock market reaction
The car company witnessed a fall in stock prices last month after posting FY 2020 losses. The share prices fell by over 9 per cent last month.
The company’s FY 2020 revenues stood at £611.8 million, down by 38 per cent on a year-on-year basis, while it reported a loss of about £466 million, much more than the losses in FY 2019, which was around £119.6 million.
Want to know more? Do read: What is Aston Martin’s Profitability Roadmap After Posting Sharp Losses?
The FTSE 250 listed car company Aston Martin Lagonda’s (LON: AML) shares jumped by 2.99 per cent, trading at GBX 1,978.50 on 9 March at 8:09 GMT+1, indicating a positive investor sentiment following the news. In contrast, the broader index FTSE 250 was trading at 21,193.14, down by 0.08 per cent.
