🍪 Cookies

We use cookies to store, access and process personal data to give you the best online experience. By clicking Accept Cookies you consent to storing all cookies and ensure best website performance. You can modify cookie preferences or withdraw consent by clicking Cookie Settings. To find out more about cookies and purposes, read our Cookie Policy and Privacy Notice.

Cookies settings

Cookie Control

What are cookies?

Cookies are small text files that enable us, and our service provides to uniquely identify your browser or device. Cookies normally work by assigning a unique number to your device and are stored on your browser by the websites that you visit as well as third-party service providers for those website. By the term cookies other technologies as SDKs, pixels and local storage are to be considered.

If Enabled

We may recognize you as a customer which enables customized services, content and advertising, services effectiveness and device recognition for enhanced security
We may improve your experience based on your previous session
We can keep track of your preferences and personalize services
We can improve the performance of Website.

If Disabled

We won't be able to remember your previous sessions, that won't allow us to tailor the website according to your preferences
Some features might not be available and user experience reduced without cookies

Strictly necessary means that essential functions of the Website can not be provided without using them. Because these cookies are essential for the properly working and secure of Website features and services, you cannot opt-out of using these technologies. You can still block them within your browser, but it might cause the disfunction of basic website features.

  • Setting privacy preferences
  • Secure log in
  • Secure connection during the usage of services
  • Filling forms

Analytics and performance tracking technologies to analyze how you use the Website.

  • Most viewed pages
  • Interaction with content
  • Error analysis
  • Testing and Measuring various design effectivity

The Website may use third-party advertising and marketing technologies.

  • Promote our services on other platforms and websites
  • Measure the effectiveness of our campaigns

Your retention will contact you in a few minutes with more information about this trading strategy.

{{ requiredField }}

{{ validEmail }}

{{ item.name }}
{{ item.dial_code }}

{{ validPhone }}

Your message was sent
Too many tries. Try in 2 minutes
locked content icon
This content is locked
to unlock it
return icon

Renault has some work ahead

In an era when the automotive industry is undergoing a profound transformation, Renault stands as an emblematic figure at the intersection of tradition and innovation. As a global leader with a storied history dating back to the late 19th century, Renault has long symbolized European automotive craftsmanship and engineering excellence. However, the 21st century has ushered in a new automotive paradigm, one dominated by electric propulsion, connectivity, and sustainability. Renault, with its unyielding commitment to reinvention, is steering confidently into this new terrain.

Renault’s Ampere IPO is near

Renault's upcoming initial public offering (IPO) for its Ampere electric vehicle division could potentially attain a valuation of around 10 billion euros, according to CEO Luca de Meo. While speaking at the IAA car show in Munich, De Meo suggested that Ampere might command a valuation between eight to ten billion euros when it goes public next year, contingent on market conditions.[1]

This announcement follows Renault's strategy of separating its operations into two divisions: Horse for traditional combustion engines and Ampere for electric vehicles (EVs) and software. This move aims to provide greater clarity and specialization, strengthening Renault's position in the competitive EV landscape, especially in the face of emerging competition from China and the U.S. This valuation estimate surpasses prior speculations that pegged Ampere's worth at 3 to 4 billion euros, emphasizing the substantial assets dedicated to the electric vehicle unit, including car platforms, advanced electronics, software architecture, manufacturing facilities, and skilled engineers. [1]

China is a major competitor in EV sector

Luca de Meo emphasized China's significant competitiveness in the electric vehicle (EV) market during an interview. Speaking from the IAA Munich car show, de Meo acknowledged China's strength in the EV supply chain and the need for Renault to quickly catch up.

He also revealed that Renault intends to unveil the pricing details for its upcoming Scenic electric minivan later in the year, with plans for a launch in the first quarter of 2024. De Meo noted that the Scenic's pricing will be attractive to a wide range of customers, making it a competitive option compared to similarly sized and categorized hybrid models. [2]

On the other hand, there are facing competition also from Tesla. According to Gilles Le Borgne, Renault's Head of Engineering, the company cannot engage in a price war with Tesla or Chinese electric vehicle competitors. Speaking at the IAA Munich car show, Le Borgne emphasized the importance of maintaining prices while focusing on adjusting fixed costs. Renault's substantial presence in the European market puts it in a particularly competitive position against new entrants like Tesla and Chinese EV manufacturers, as highlighted in a recent UBS note. [3]


UBS not so positive on Renault

UBS has downgraded Renault, the French automaker, to a Sell rating from Neutral, and concurrently lowered the 12-month price target on the stock to €31.00 from €42.00.[2] This downgrade comes amidst increasing competition from Chinese automotive rivals. Although UBS anticipates continued strong financial performance in the coming quarters, they point out that most indicators are no longer showing improvement. UBS analysts assert that traditional automakers face a significant risk of losing substantial market share due to intensifying competition from Chinese OEMs like BYD and Tesla.

UBS has taken this into account in their 2024 projections, which partially offsets the potential impact of a steeper price/mix decline. Nevertheless, UBS believes these cyclical headwinds cannot be entirely offset, posing challenges for Renault as they navigate the evolving automotive landscape marked by formidable competition from China and Tesla. [4]

Stock development

In the past five years, stocks of Renault were pretty much in a bearish trend. In fact, for the last five years, they have generated a loss of more than 50%. However, if we check the time frame since they came to the market, they have generated a profit of 28,25%. At some points, there was even bigger growth, however, it was shortly followed by major correction. The biggest growth recorded was more than 300% in June 2007. *

Snímek obrazovky 2023-09-06 v 19.55.13

Movement of Renault stocks in the last five years. (Source: Google Finance) *


Renault is gearing up for a significant transformation with the imminent initial public offering (IPO) of its Ampere electric vehicle division, projected to potentially achieve a valuation between 8 to 10 billion euros.[3] While China has emerged as a formidable competitor in the electric vehicle supply chain, Renault's CEO, Luca de Meo, is committed to catching up and ensuring the company's competitiveness. Company surely looks interesting to keep an eye on, Ampere will be a main event and could have potential effect on the stock movement.


Adam Austera, chief analyst at Ozios

* Past performance is no guarantee of future results

[1,2,3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

[1] https://www.reuters.com/markets/deals/renault-ceo-sees-ampere-ipo-valuation-up-10-bln-euros-ft-2023-09-05/#

[2] https://www.investing.com/news/stock-market-news/renault-ceo-china-very-competitive-on-electric-vehicles-europe-needs-to-catch-up-3166710

[3] https://www.reuters.com/business/autos-transportation/renault-cannot-afford-discount-race-with-tesla-chinese-peers-executive-says-2023-09-03/

[4] https://www.investing.com/news/stock-market-news/ubs-cuts-estimates-on-renault-and-volkwagen-as-chinese-competition-rises-432SI-3166149


The material herein is considered as marketing communication under the relevant laws and regulations, and as such is not a subject to any prohibition on dealing ahead of the dissemination of investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and should not be construed as containing investment advice, or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. The published content is intended for educational/informational purposes only. It does not take into account readers’ financial situation, personal experience or investment objectives. APME FX Trading Europe Ltd makes no representation that the information provided is accurate, current or complete; and therefore, assumes no liability for any losses arising from investments based on the supplied content. The past performance is not a guarantee of future results.

McDonald's and other major fast food brands – value for investors and outlook

In an era when the automotive industry is undergoing a profound transformation, Renault stands as an emblematic figure at the intersection of tradition and innovation. As a global leader with...

Netflix - the streaming giant continues to grow

In an era when the automotive industry is undergoing a profound transformation, Renault stands as an emblematic figure at the intersection of tradition and innovation. As a global leader with...

Google unveiled enterprise AI tools

In an era when the automotive industry is undergoing a profound transformation, Renault stands as an emblematic figure at the intersection of tradition and innovation. As a global leader with...
We are also available at +357 25 054 734

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.51% of retail investor' accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read our Risk Disclosures.