BMW (OTCMKTS:BMWYY) has made the switch to electric vehicles (EVs) gracefully, as is evidenced by its recent sales growth. Indeed, the German automotive giant almost doubled its EV sales during the final quarter of 2023, reporting 129,316 models sold. That’s a year-over-year (YOY) gain of nearly 48% — and BMW only expects things to get better from here. Looking forward, BMWYY stock is well-positioned to continue riding this wave to new heights, especially as its Chief Financial Officer thinks the company has reached a critical “tipping point” in its transition to EVs.
BMW made headlines late in 2023 when it reported higher sales growth than Tesla (NASDAQ:TSLA). The fact that the EV sector leader failed to outshine multiple automakers means that the market is changing. But does this mean that BMW is going to be the company that pushes Tesla out of its top spot? As of now, that scenario looks increasingly likely.
BMWYY Stock: A Likely 2024 Breakout Sensation
As trading kicks off this week, BMWYY stock has been a little slow to pick up momentum. Shares are currently in the red today, but that shouldn’t distract from the much bigger picture here. BMW spent last year proving that it can hold its own and find ways to increase sales in an otherwise unfriendly EV market. Now this slow, steady growth is likely to accelerate in 2024 as economic conditions gradually shift back in favor of EV producers.
How good have BMW’s EV sales been recently? A quick look at the number reveals some highly encouraging stats. As Electrek reports:
“Last year, BMW sold 375,183 BEVs, up 74.4% year-over-year, representing 14.7% of the total volume, which is close to its 15% target. Plug-in hybrids accounted for 190,303 units sold, down 13% year-over-year, with 7.4% market share. Together, BMW sold 566,486 BEVs and PHEVs, up 31% year-over-year, for a 22.2% market share. Fourth-quarter deliveries of fully electric BMW vehicles reached 113,458 units (+55.4%).”
Now as a new year unfolds, BMW is more committed than ever to becoming a leading EV maker. Chief Financial Officer Walter Mertl recently discussed the company’s 75% EV sales growth in 2023. “The tipping point for combustion engines was last year,” Mertl noted. “Future volume growth will primarily come from battery electric vehicles.”
The numbers certainly support that hypothesis. Demand for BMW EVs has remained strong with models such as the BMW i4 M50 and BMW iX1 helping keep sales elevated. Last week also brought news that BMW will be investing $711 million to transition its large Munich factory into an EV-only production facility by 2027. If successful, that mission will allow the firm to chip into Tesla’s share of the European market even further.
The Road Ahead
There has been much speculation as to which company will be the “Tesla Killer,” with many automakers throughout the U.S and Asia having been floated as potential candidates. But since 2023, it has become increasingly clear that BMW is the firm which Musk should be most worried about. With years’ worth of brand loyalty and a history of quality engineering, BMW has earned its prestige as a top automaker.
Of course, BMWYY stock has struggled recently. But for investors, that makes now a key opportunity to buy in before shares rebound. BMW is still on track to be one of the top EV investments of 2024.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
