u/Public-Promotion-744 5.0 2 ideas

VW is a global auto giant with 12 brands, priced at historically low valuations (implied by the author's "failing used car dealership" comparison). If VW navigates the EV transition, solves its complexity issues, and avoids a permanent margin reset, the current price offers deep value. A high-risk, high-potential-reward long-term contrarian bet on a mispriced industrial. Intense competition (especially from BYD in China), low operating margins (2.8%), EV transition costs, pricing wars, geopolitical issues, and legacy Dieselgate lawsuits.

The author mentions holding BYDDY shares as a hedge against the VOW3 long position. BYD is the competitive threat eating VW's lunch in China, providing a direct hedge to the primary trade's China risk. BYDDY is not a standalone trade idea here but a risk management component for the VOW3 thesis. Not applicable, as this is presented as a hedge.