Mercedes-Benz Stock: Battery Innovation Drives Share Growth

Mercedes-Benz shares climbed notably on Wednesday, trading up to 1.59 percent higher at €51.70 following a significant breakthrough in battery technology. The premium automaker has commenced serial production of a new battery generation for its all-electric CLA at its Accumotive subsidiary in Kamenz, Saxony. The impressive technology allows energy for up to 325 kilometers of range to be recharged in just ten minutes, with the CLA 250+ achieving a maximum range of 792 kilometers. This innovation positions the company as a leader in electric vehicle technology at a critical time when the German premium sector faces weakening sales figures, particularly in China and the United States. Investors have responded positively to this strategic direction, recognizing the potential of the new technology in strengthening Mercedes-Benz's position in the electric vehicle market.

Cost-Cutting Measures Bolster Financial Outlook

The automaker is simultaneously implementing substantial cost reduction initiatives to improve profitability. The "Cost Down Europe" program aims to reduce recurring costs by more than one billion euros, with the adjusted return on sales in the industrial business targeted to increase from the current 8.9 percent to over 12 percent by 2030. This strategic realignment includes a workforce reduction of 5,000 jobs in Germany, primarily through natural attrition and partial retirement schemes. The stock further benefited from the announcement of a new share buyback program worth up to 2 billion euros, contributing to the positive market response despite initial concerns about the restructuring.

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Source StockWorld