Daimler shares are trading a little lower pre-market following a firm rally over the last few months. Prices have traded off the Q1 23.00 lows and are now trading around 200% higher around the 70 level.
Shares have recovered firmly off the lows registered during the height of the pandemic. Since then, they have been bolstered by the broad pick up in risk appetite over recent weeks in response to the COVID vaccine news which has been hitting the markets.
New Budget Approved
Shares in the company have also been boosted by the recent news that the company is investing $85 billion in accelerating its move into electric vehicles.
Following what the company has called controversial discussions, Daimler has approved a new budget for 2021 through 2025. During the time-frame, Daimler has outlined plans to spend around $70 billion in research and development focused on property, plant, and equipment with a priority on electrification and digitization.
The company has also outlined plans to boost funding for its truck division. In a statement released this week, Daimler said:
“Furthermore, within this business plan, Daimler Trucks will also be able to accelerate its plans towards emission-free transportation.”
Comments From Daimler CEO
Commenting on the new budget, Daimler CEO Ola Kallenius said:
“With the Supervisory Board’s confidence in our strategic course, we will be able to invest more than €70 billion over the next five years. We want to push ahead faster in particular with electrification and digitization. In addition, we have agreed with the Works Council on a transformation fund. With this agreement, we are fulfilling our shared responsibility to actively shape the transformation of our company. Improving our profitability and targeted investment in Daimler’s future go hand in hand.”
Daimler Shares Break Out
Daimler shares have been on a firm upward trajectory over recent months. Price has recently broken above the 67.0678 level and above the bullish channel which has framed the recovery off the 2020 lows.
While above the 67.0678 level, price is open to further upside in the near term. Any correction below the 67.0678 level will turn focus to 60.0483.
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