Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Renault sets €10 billion revenue target for EV unit Ampere ahead of IPO

Published Nov 15, 2023 18:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
RENA
-0.53%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Amid challenging market conditions and competitive pressure, Renault (EPA:RENA) is setting ambitious financial goals for Ampere, its electric vehicle (EV) and software division. The company announced today that it aims to generate over €10 billion ($10.9 billion) in revenue by 2025. This announcement comes as Renault prepares for an initial public offering (IPO) of the Ampere unit in April-May 2024, with a targeted valuation between €8 billion and €10 billion.

Luca de Meo, Renault's CEO, is actively working to bolster investor confidence in Ampere, particularly in light of recent concerns over sluggish EV demand and heightened competition from Chinese manufacturers. Despite these challenges, the company remains steadfast in its plans but has indicated that it may reassess the IPO if valuations fall below €7 billion, as per inside sources.

The company is also preparing to introduce a new cost-effective electric vehicle designed to compete with more affordable Chinese models. This move is crucial as some of Renault's current EV models like the Zoe and Twingo are phasing out, with replacements such as the Scenic and R5 set to launch next year. Meanwhile, sales figures show that the electric Megane has sold 14,220 units, lagging behind Tesla (NASDAQ:TSLA)'s Model Y. This reflects a 5% dip in European sales but a slight 2.5% increase in the first half of the year, capturing just 1% of the passenger car market share.

In anticipation of Ampere's IPO, Renault has transferred its 28.4% stake in Nissan (OTC:NSANY) into a special fund as an alternative to direct funding from the public markets. Furthermore, investment commitments from partners Nissan and Mitsubishi Motors (OTC:MMTOF) could inject up to €800 million into Ampere. Tech giant Qualcomm (NASDAQ:QCOM) is also considering an investment in the venture.

Today's strategic updates come as part of de Meo's broader restructuring plans for Renault which involve separating its internal combustion engine (ICE (NYSE:ICE)) operations from its battery electric vehicle (BEV) functions. The CEO is expected to present his case for the IPO while highlighting the benefits of this separation and showcasing Ampere's potential within the rapidly evolving EV landscape.

InvestingPro Insights

InvestingPro's real-time data and tips provide essential insights into Renault's financial performance and standing in the Automobile industry. Renault, known as 'RENA' in the stock market, boasts an impressive market capitalization of $10,301.32M, reflecting its prominence in the industry. Moreover, RENA's P/E Ratio stands at a low 3.05, suggesting the company's shares may be undervalued.

InvestingPro data also highlights RENA's strong revenue growth. In the last twelve months as of Q2 2023, the company's revenue surged by 25.09%, and the quarterly revenue growth in Q2 2023 was an even higher 27.31%. This data aligns with InvestingPro Tip 0, which indicates that RENA's revenue growth has been accelerating.

Another crucial InvestingPro Tip, Tip 1, suggests that RENA's robust earnings should enable the continuation of dividend payments, a factor that could attract investors seeking stable returns. Furthermore, the company's profitability over the last twelve months, as indicated by Tip 7, further underscores the financial strength of RENA.

In conclusion, with over a dozen more insightful tips available on InvestingPro, the platform serves as an invaluable resource for investors keen on understanding the nuances of RENA's financial performance and potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Renault sets €10 billion revenue target for EV unit Ampere ahead of IPO
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email