BMW is expecting 20% of total sales to be from fully electric models by 2024 and expects 50% of all total sales well ahead of 2030. So, BMW’s electric shift is picking up pace and the manufacturer is looking well-placed for an electric vehicle future. BMW’s CFO is also targeting a 50% cost reduction in 6th generation batteries from the 5th generation. However, BMW is a higher-end car, so will rising interest rates impact sales?

The company says that it expects the demand in the premium market to remain stable, but it does expect global markets to cool this year. However, it is still projecting 8-10% returns this year. So, can BMW weather trickier financial conditions ahead?

Seasonally, BMW has a period of strength with 76% gains between March 16 and June 10. The average return has been an impressive +9.58%, but will the pattern play out again this year?

Major Trade Risks: The major trade risk here is if demand for cars is hit significantly due to slowing global demand. Higher interest rates, rising inflation, and higher energy costs are all key risks for this outlook.

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