Last month, Volkswagen Group invested $5 billion in U.S. electric truck and SUV manufacturer Rivian, causing the startup's stock price to soar.
However, Volkswagen's stock price fell by 1.6%.
Some analysts praised the joint venture between Volkswagen and Rivian as a way to enhance the German giant's software capabilities, but this investment has raised cost concerns and highlighted how issues in critical areas are weakening Volkswagen's global electric vehicle transition.
As the world's second-largest automaker, Volkswagen faces significant challenges in Europe, the U.S., and particularly China. Chinese domestic electric vehicle manufacturers, led by BYD, are capturing its market share. Over the past two years, Volkswagen has lost more market value than any major competitor.
By 2030, Volkswagen plans to launch over 30 new electric or hybrid models in China and aims to increase sales from the current approximately 3 million to 4 million, raising market share to 15%.
However, in the short term, Volkswagen's Chief Financial Officer Arno Antlitz told Reuters that the company expects its market share in China to continue declining and hopes to maintain its current position in Europe.
Volkswagen's struggles in China underscore the bleak prospects for foreign automakers in the country. Domestic electric vehicle manufacturers dominate the world's fastest electric vehicle market transition with high-tech, low-cost models. Volkswagen is particularly vulnerable because the Chinese market accounts for about one-third of its total sales.
This makes Volkswagen's smaller U.S. operations bear the brunt of its most ambitious growth plans: the automaker aims to more than double its market share in the U.S. to 10% by 2030.
