Should I buy Volkswagen stock in 2025?

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What is Volkswagen?

How much is Volkswagen stock?

The price of Volkswagen stock is rising this week. As of today, Volkswagen shares are trading at CA$144.75, with a slight change of -0.02% in the past 24 hours and a strong weekly gain of +12.48%. The company’s market capitalization now stands at CA$84.41 billion, with an average 3-month trading volume of roughly 994,700 shares.

Our full analysis on Volkswagen stock

After a comprehensive review of Volkswagen AG’s latest financial results alongside the stock’s multi-year performance, and an integration of multiple sources—ranging from proprietary technical models and key market data to competitive analysis and macroeconomic signals—a compelling opportunity in the automotive sector emerges. With a confluence of attractive valuation metrics, robust product momentum, and powerful trends in electrification, Volkswagen’s current profile invites renewed scrutiny. So, why might Volkswagen stock once again become a strategic entry point into the mobility technology sector in 2025?

Recent Performance and Market Context

Stock Price Movement: Reversal and Momentum Building

Volkswagen’s stock (VOW3) currently trades at €97.82, reflecting a significant upward movement of +12.5% over the past week and a +9.4% gain year-to-date. While the 1-year performance stands at -15.05%, this moderate retracement may signal a consolidation phase, potentially setting the stage for a reversal.

Across the previous three years, Volkswagen has undergone cycles of volatility—marked by macroeconomic headwinds, supply chain disruptions, and shifts in consumer preferences. However, the recent robust weekly gain outpaces both the sector and DAX index, hinting at mounting investor confidence and renewed interest in European automakers poised for transition.

Positive Recent Events: Signs of Renewal

The company’s Q1 2025 results reveal resilience: revenues climbed to €77.6 billion (+2.8% YoY), and order intake in Western Europe soared 29%. While operating and net profit declined due to special charges, underlying trends—such as a 64% spike in electric vehicle (EV) orders and a positive shift in net cash flow—underscore Volkswagen’s capacity to convert adversity into renewal.

Macroeconomic and Sector Backdrop

Europe’s automotive markets have stabilized post-pandemic, as inflation moderates and green mobility incentives gain traction. In Canada, investor appetite for global value opportunities remains robust, particularly for companies at the intersection of industrial strength and technology-driven transformation. Volkswagen’s established global footprint—spanning combustion, hybrid, and electric—coupled with its commitment to the EV revolution positions it advantageously within sector tailwinds.

Technical Analysis: Structure for Bullish Breakout

Momentum and Moving Averages

With the price firmly above short and long-term moving averages, short-term momentum and trend-following structures signal stability and upside potential. The moving average consensus is at “Strong Buy,” with 11 of 12 key averages showing bullish directionality.

Oscillator and Sentiment Indicators

The blend of these readings points to a stock rebounding from technical lows while avoiding dangerous excesses. Support levels at €95.64, €96.24, and €97.00 have held during recent market volatility, forming a solid base. Resistance at €98.36 and €98.96, once breached, could serve as a launchpad for further upside.

Momentum Structure

The combination of recent strong weekly gain and technical consensus ("Buy" with 13 bullish indicators) implies Volkswagen is entering a fresh bullish phase, with volatility potentially working in shareholders’ favor as a re-accumulation pattern unfolds.

Fundamental Analysis: Value Meets Transformation

Financial Growth and Profitability

Volkswagen delivered €77.6 billion in Q1 2025 revenue, up 2.8% YoY, outpacing many global peers and supporting the company’s claim as a volume leader. While special effects weighed on Q1 profit (operating profit down 37% YoY), an adjusted operating result of ~€4.0 billion and a 5.1% margin illustrate healthy core business performance once non-recurring charges are isolated.

Vehicle sales rose to 2.1 million units, and the order backlog in Western Europe climbed to the symbolic threshold of 1 million vehicles, a clear indicator of latent demand.

Attractive Valuation Profile

At a P/E of 4.45, Volkswagen stocks trade at a pronounced discount to their historical average and well below major U.S. and Asian auto-tech peers. The dividend yield of 6.46% (€6.36 per share) is notably above both European and North American market norms, providing a robust income buffer and highlighting management’s confidence in ongoing cashflow generation.

Price-to-Sales and Price-to-Book multiples further reinforce the case for deep value in a sector seeing renewed interest.

Structural Strengths

Volkswagen’s name resonates globally, supported by a premier brand portfolio (including Audi, Porsche, Bentley, Lamborghini) and a deep commitment to innovation. The rapid scale-up in electric vehicles—orders up 64% in Q1, with every fifth car in Western Europe now fully electric—positions Volkswagen as both a leader and a credible challenger in the so-called “third wave” of mobility.

Strategically, partnerships such as the alliance with XPeng in China for future platform and software development underscore Volkswagen’s ability to address both Western and Eastern market dynamics.

Volume and Liquidity: Market Trust and Flexibility

Sustained Volume Highlights Market Depth

With an average daily trading volume approaching 995,000 shares, Volkswagen’s liquidity profile is among the strongest in the European auto sector:

• Sustained trading volume confirms institutional participation and increases avenues for both price discovery and tactical allocations.
• A free float of nearly 46% ensures ample room for dynamic re-rating while providing resilience against liquidity shocks—a particularly salient consideration for Canadian investors seeking access to global blue-chip names without excessive bid/ask spreads.

Favorable Float Structure

Ownership remains diversified, with significant institutional stakes (Porsche SE, Lower Saxony, Qatar Investment Authority) but a robust free float. This equilibrium underpins Volkswagen’s ongoing eligibility for major equity indices (DAX) and ensures broad-based market participation.

Catalysts and Positive Outlook

Product Innovation and Electrification

Volkswagen is accelerating its EV transition, introducing new models across segments and reporting EV sales doubling in Western Europe in Q1. The order backlog fuels visibility well into 2025, helping mitigate potential short-term shocks.

• New-generation EV platforms and increased production capacity (especially in Germany and China) are set to drive scale economies.
• Strategic partnership with XPeng opens a gateway to advanced tech and expanded presence in the world’s largest EV market, China.

Financial and ESG Initiatives

The company’s guidance for 2025—expecting sales revenue to exceed the prior year by up to 5% and operating margins between 5.5%–6.5%—encourages optimism that headwinds are being actively managed. Volkswagen’s ESG advances, including decarbonization, sustainable supply chain, and circular economy initiatives, offer further opportunity to benefit from a re-rating as institutional capital increasingly rewards environmental stewardship.

Market and Regulatory Tailwinds

• Government incentives for green vehicles in Europe and North America continue to stimulate demand.
• Stabilizing supply chains and softening raw material prices compared to 2021–2023 provide a more favorable cost backdrop.
• Favorable currency dynamics may further benefit euro-based exporters in 2025.

Investment Strategies: Finding the Optimal Entry

Short-Term: Riding the Rebound

Given the recent technical breakout and strong volume, tactical positions taken around the €97–98 support zone could benefit from upward momentum as the next resistance levels (€99–100) come into focus. Short-term traders may see opportunities in volatility, especially if viewing pullbacks as entry points rather than caution signals.

Medium-Term: Capitalizing on Catalysts

For those looking beyond weeks and months, 2025 brings multiple positive catalysts: new electric vehicle launches, ongoing cost discipline, and the execution of high-margin strategic partnerships. The stock’s low valuation, coupled with robust dividend support, invites medium-term conviction that the company’s transformation will drive both price and total return.

Long-Term: Value and Technology Convergence

Long-term investors may wish to anchor on Volkswagen’s proven ability to adapt, its powerful brand ecosystem, and its commitment to electrification—factors likely to unlock lasting value as the auto sector reshapes toward low-carbon solutions. With the stock trading well below historical and peer-based multiples, a multi-year strategy appears justified by both fundamentals and secular trends.

Timing: Near Technical Lows and Ahead of Major Catalysts

With the stock currently hovering above technical support—and ahead of a new wave of electric and digital product launches—the timing seems propitious for accumulation. Volatility/risk is not absent, but the reward profile may be shifting decisively in favor of patient buyers.

Is It the Right Time to Buy Volkswagen Stock?

Drawing together the threads of robust volume, positive technical structure, and historically attractive valuation, Volkswagen stock appears to embody a compelling blend of income, value, and transformation potential at this juncture. The company’s improving financial health (excluding non-recurring impacts), strong EV growth, and global diversification provide solid foundations for medium- and long-term appreciation. Dividend strength adds a layer of stability rare among global automakers, while technical signals reinforce the sense that a new bullish phase may be underway.

Multiple forthcoming catalysts—ranging from product launches and strategic partnerships to regulatory approval for next-gen technology—further enhance the case for renewed interest. While vigilance is always warranted given sector volatility and restructuring expenses, the current market dynamics appear weighted toward upside realization.

In sum, Volkswagen seems to represent an excellent opportunity for diversified portfolios seeking exposure to the intersection of value, yield, and automotive technology leadership. As the company navigates its renewal and the automotive sector enters a new era, Volkswagen’s position at a pivotal technical juncture and favorable valuation invite investors to consider the upside potential now on offer.

How to buy Volkswagen stock in Canada?

Buying Volkswagen (VOW3) stock online through a regulated Canadian broker is both straightforward and secure. Today’s online platforms give you access to global stock markets—including Germany’s XETRA, where Volkswagen is listed—from the comfort of your home. Whether you’re looking to invest for the long term or take a more active approach, you can buy Volkswagen shares using two main methods: spot buying (owning actual shares) or trading Contracts for Difference (CFDs) for leveraged exposure. Below, we outline each method in detail to help you decide which approach suits your goals. For your convenience, you’ll find a broker comparison tool further down this page.

Spot Buying: Direct Ownership of Volkswagen Shares

Spot buying means purchasing Volkswagen shares directly on the stock market and becoming a legal shareholder. This traditional approach is popular with Canadian investors who want to benefit from potential share price appreciation and dividend income (note: foreign dividends may be subject to German withholding tax and local Canadian taxes).

Fees

Most Canadian online brokers charge a fixed commission per trade—often around $5 to $10 CAD per order.

Example

Informations importantes

Suppose Volkswagen’s current share price is €97.82, which is approximately $144 CAD (using an exchange rate of 1 EUR ≈ 1.47 CAD). With a $1,000 CAD investment:

• $1,000 CAD / $144 CAD per share ≈ 6 shares (rounded down, excluding small differences for currency fluctuation)
• Transaction fee: about $5 CAD
• Amount invested in shares: about $864 CAD ($144 × 6 shares)
• Total cost including fee: $869 CAD

✔️ Gain scenario: If Volkswagen’s share price rises by 10% (from $144 to $158.40 CAD):

• New value of your investment: $158.40 × 6 = $950.40 CAD
• Result: $86.40 gross gain (+10% on the $864 invested), before fees/taxes.

This approach gives you direct ownership of your shares and possible dividend income, but your gain or loss is tied to the actual share price movement.

CFD Trading: Leveraged Exposure to Volkswagen Stock

CFD trading allows you to speculate on the price movements of Volkswagen shares without owning the underlying stock. Instead, you open a contract with your broker reflecting the stock’s price change. This method offers leverage, meaning you can amplify gains (and losses) beyond your initial investment. However, CFD trading is typically more suited for short- to medium-term strategies and carries higher risk.

Fees

Instead of commissions, CFDs generally involve paying a spread (the difference between buy/sell prices), and overnight funding fees if you hold positions beyond a day.

Example

Informations importantes

With $1,000 CAD and 5x leverage:

• Your market exposure: $1,000 × 5 = $5,000 CAD
• Suppose Volkswagen’s price increases by 8% within your holding period.

✔️ Gain scenario:

• 8% gain on $5,000 exposure = $400 CAD profit (excluding fees)
• Your leveraged return is +40% on your initial $1,000 investment.

Remember, the same leverage magnifies any losses, and you will also pay the spread (typically a small percentage) plus possible overnight fees if the position is not closed on the same day.

Final Advice: Compare Brokers and Choose What Fits Your Goals

Before you invest in Volkswagen stock, carefully compare fees, trading platforms, and trading conditions among Canadian brokers. The best choice depends on your individual objectives—whether you prefer to own shares outright for long-term growth and dividends, or actively trade with leverage using CFDs. Use our broker comparison tool below to evaluate your options and find the platform that best meets your needs. Always invest responsibly and consider your risk tolerance before making investment decisions.

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Our 7 tips for buying Volkswagen stock

The latest news about Volkswagen

Volkswagen's stock has surged 12.5% this week, driven by positive technical signals and strong buy momentum. The stock currently trades at €97.82, with several key moving averages (5-day, 20-day, 100-day, 200-day) issuing “buy” signals and an overall bullish consensus from 13 out of 22 technical indicators. This recent upward movement reflects renewed confidence following the Q1 results release and is especially relevant for Canadian institutional investors focused on international diversification, as such a pronounced uptrend may influence foreign equity allocations and ETF rebalancing decisions in Canada.

The Q1 2025 financial results highlight resilient topline growth and a sharp rebound in European electric vehicle orders. Volkswagen achieved a 2.8% year-over-year increase in revenue to €77.6 billion, with orders for fully electric vehicles in Western Europe up 64% and total order intake in the region jumping 29%. While operating profit was affected by €1.1 billion in special effects, the adjusted operating result was around €4.0 billion with a 5.1% margin. For Canadian analysts, the strong electrification drive and growing backlog underline Volkswagen’s potential as a leading European EV supplier, relevant to portfolios emphasizing the transition to green mobility—a major policy and investment theme in Canada.

Volkswagen’s dividend yield stands at 6.46%, offering Canadian investors an attractive income stream even after accounting for German withholding tax. With an upcoming ex-dividend date of May 19, 2025, and a €6.36 annual dividend per share, the payout remains significantly above sector averages. For Canadian residents investing in global dividend stocks, the presence of a Germany-Canada double tax treaty helps reduce withholding tax, enhancing net yield and making the stock compelling for income-oriented strategies and RRSP/TFSA allocations.

A robust EV model rollout and a growing order backlog suggest sustainable demand despite near-term margin pressure. Every fifth car sold by Volkswagen in Western Europe is now fully electric, with unit sales of EVs more than doubling year-over-year. The backlog nearly reached 1 million vehicles in Q1, indicating momentum for future sales and production. This growth aligns with the Canadian automotive market’s increasing EV adoption, as Volkswagen’s global scale and portfolio could positively affect its Canadian operations, dealer networks, and local partnerships in electrification infrastructure and supply chains.

Volkswagen continues its global partnership strategy, notably collaborating with XPeng in China for platform and software development. Such alliances reinforce its position in the world’s largest auto market and help accelerate technological innovation, directly relevant for Canadian analysts monitoring global auto value chains. The company’s openness to strategic partnerships can foster potential cross-border technology transfers and collaboration, possibly benefiting Canada’s auto sector given its integration into North American and global automotive supply networks.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.