Volkswagen clearly undervalued but batteries could boost business, second-largest shareholder says

Lower Saxony, Volkswagen (ETR:VOWG_p)’s second-largest shareholder, views the carmaker as undervalued but believes its growing battery business could boost its valuation, the state’s prime minister said on Friday.

As Volkswagen and its largest shareholder Porsche SE prepare to list sportscar maker Porsche in part to raise funds, Stephan Weil said he believed the group had potential far above its valuation, adding it was not time to consider capital increases. “I am sure Volkswagen has unbelievable potential … there is a lot to suggest that its activities around batteries will increase the value of the group in a sustainable way,” Weil said on the sidelines of his election campaign.