BMW: Initiation of Coverage- Can $1.7 Billion in EV Bets Help Them Catch Up With Rivals?

Based on the latest earnings for Bayerische Motoren Werke AG (BMW), various operational and strategic elements were discussed, both positively and negatively affecting the company’s current and future outlook. Starting with the positives, BMW continues to hold a substantial manufacturing and export presence in the United States. In 2024, BMW produced nearly 400,000 units at its Spartanburg plant, exporting over 225 million vehicles with a value exceeding $10 billion, maintaining its status as the top automotive exporter by value in the U.S. The company is investing an additional $1.7 billion into expanding its electric vehicle (EV) production capabilities, including $1 billion for BEV manufacturing at Spartanburg and $700 million for a high-voltage battery assembly plant. This commitment reflects BMW’s strategic focus on expanding its EV offerings, which is seen as crucial in meeting future demand and regulatory requirements.