Daimler AG shares have soared since May 15. The reason for the surprising development on the stock exchange could not be very pleasing for the vehicle manufacturer from Stuttgart.
- The Daimler AG share rose by more than 20 percent within 13 trading days.
- The share price of the automobile manufacturer from Stuttgart , the state capital of Baden-Württemberg, puzzles even stock exchange experts.
- For Daimler AG, there is a risk on the stock exchange : The auto company's share is very popular in China .
Stuttgart - On May 15, the Daimler AG share (BW24 * reported) was EUR 28.04. As of today, June 3, the security of the automotive group * is 36.77 euros. That is an increase of more than 20 percent within 13 trading days. On June 2 alone, the Daimler share price rose by almost ten percent. The reason could be anything but pleasant for the vehicle manufacturer from Stuttgart, the state capital of Baden-Württemberg.
The Daimler AG share puzzles even stock exchange experts
The share price of Daimler AG is puzzling. Even analysts can not explain the current development on the stock exchange . The auto expert Frank Schwope from the Norddeutsche Landesbank comes up with three possible explanations that, individually or in combination , could have caused the rapid rise in the price of Daimler shares , as the Handelsblatt reports. Even if the car summit, which should have taken place at the Chancellery on June 2, has been postponed and there will be no decision on state aid for vehicle manufacturers for the time being , consumers could hope for a new scrappage bonus, which is currently under discussion with the Grand Coalition.
Daimler AG and Mercedes-Benz sell as many cars as never before - there is still a crisis
© Uli Deck / dpa
Thanks to a cooperation with Renault, the Daimler share could be on the upswing
Another reason for the rising share price of Daimler AG could, according to Schwope, be a statement by Renault boss Jean-Dominique Senard. At the end of May he said in a press conference that he hoped to be able to tell the journalists "very good news" about the Daimler-Renault-Nissan alliance soon. The German and French vehicle manufacturers have been cooperating since 2010. The automakers * have been producing models from both brands, such as the Renault Twingo and Smart Fourfour or the A-Class and the Infiniti Q30, in a joint plant. Perhaps investors on the stock exchange are hoping for new vehicle models or developments in cooperation , so that the development of the Daimler share on the stock exchange can be explained.
Daimler suffered more than other vehicle manufacturers due to the diesel scandal and Corona
The conspicuous share price of Daimler AG could also be justified by the fact that the Daimler share "suffered disproportionately" compared to the securities of other vehicle manufacturers and is now recovering, as auto expert Frank Schwope told the Handelsblatt . The diesel affair and the corona virus in Baden-Württemberg hit the car manufacturer from Stuttgart with full force *. The current market capitalization of 39 billion euros makes Daimler a “bargain”, Michael Brecht, member of the supervisory board and chairman of the works council of Daimler AG, warned at the end of March.
Danger for Daimler AG on the stock exchange: the stock is very popular in China
The danger that not only Michael Brecht sees due to the low valuation of Daimler shares on the stock exchange has a name: Li Shufu . Shufu is a billionaire who could pose a threat to Daimler *. Because the Chinese is already the largest single shareholder of Daimler AG with 9.7 percent and is rumored to be interested in expanding its stake in the vehicle manufacturer from Stuttgart - even if he denies it. And Li Shufu - founder and CEO of the Chinese vehicle manufacturer Geely - has been on a major shopping spree in Europe for the past ten years.
The multi-millionaire bought Volvo for $ 1.8 billion in 2010 and the London Taxi Company in 2013. In 2017, the Chinese acquired a 51 percent stake in the British vehicle manufacturer Lotus. A year later, it was Daimler AG's turn - Li Shufu spent $ 7.5 billion on a 9.69 percent stake in the Swabian car maker . Shufu recently announced a stronger cooperation with Daimler. He wants to work more with the Swabians in the areas of technology and software, as the Handelsblatt reports. In addition, there should be an increased division of rights. Nobody can say for sure whether this is behind the soaring Daimler share .
China could gain great influence on the German economy through the Daimler share
Daimler share breaks through resistance with a strong upward trend https://t.co/p3bWpoWCKn
- Börse Express (@aktienwien) May 28, 2020However, one thing is certain: a second interested party is waiting for shares in Daimler AG on the stock exchange . BAIC (Beijing Automotive Industry Holding Corporation Limited) - another automobile manufacturer from China, who apparently is thinking about catching up with Li Shufu and increasing its Daimler shares up to ten percent, according to the Handelsblatt . The German Association for the Protection of Securities, the largest German shareholders' association, warns against this scenario.
If Li Shufu or BAIC increase their stake in Daimler AG , a Chinese blocking minority will become almost tangible. The vehicle manufacturers from China could then prevent resolutions at the general meeting that require a 75 percent majority in the capital. For example, Daimler AG's articles of association could no longer be changed against the will of China. This would make one of the most important players in the German automotive industry in Chinese hands. However, this could prevent banking supervision, because Daimler AG holds a credit institution with the Mercedes-Benz Bank - and every stake of more than ten percent must be carefully examined.
* BW24 is part of the Ippen-Digital editors network
