(News Bulletin 247) – Luca de Meo explained to the FinancialTimes that the future electrical division of the group could weigh 8 to 10 billion euros. Still, some analysts are much less optimistic.

How much will Ampere be worth on the stock market? As a reminder, this division brings together Renault’s activities in electric vehicles and on-board software and is to be listed on the stock market in the spring of next year. The goal is to crystallize value, the market preferring “pure-players” to companies with several activities.

The automaker had never (officially) risked putting a price or amount on Ampere’s potential valuation. At the Munich motor show, the group’s managing director, Luca de Meo, has now taken the plunge, via an interview with the FinancialTimes.

The pilot of the group declared that this activity could be worth “eight, nine, ten billion euros”, according to the remarks transcribed by the British business daily.

Between 3 and 30 billion euros

These figures may seem relatively ambitious, with some analysts’ estimates turning out to be much lower. If Bernstein arrived at an assessment of between 20 and 30 billion euros, Barclays withheld 5 billion euros. On Friday, UBS went even lower, arriving at an estimate between 3 and 4 billion.

Due in particular to increased competition from Chinese players in the electric market in Europe (MG, BYD), the Swiss bank expressed doubts both about Ampere’s financial objectives (1 million vehicles sold in 2031 and an operating margin around 10% in 2030) than on the value crystallization enabled by the operation. She also cited the example of the IPO of Porsche which had not really had an impact (if not negative) on that of its parent company Volkswagen.

“If European investors care about the future of Europe, they would do better to invest in this area, instead of putting question marks everywhere”, for his part argued with the FinancialTimes Luca de Meo.

“I don’t know what European investors are doing, but if they want to protect Europe, they should support projects like this, where someone has the courage to provide a solid and comprehensive response to the challenge that the Chinese and the Americans are throwing us,” he insisted.

“Let’s be serious” about the valuation of VinFast

Incidentally, Luca de Meo addresses a sliding tackle to VinFast, the Vietnamese car manufacturer which entered the Nasdaq in mid-August. With a ridiculous free float (less than 1% of the capital) the action of this manufacturer has experienced dizzying variations to the point of reaching up to 190 billion dollars in total value on the stock market (i.e. the third market capitalization for an automotive group and nearly 19 times that of Renault). This while VinFast only sold… 11,300 vehicles in the first half.

“Look at the valuation of European companies”, points out Luca de Meo. Referring to BMW’s market cap of €62 billion, he asks: “Do you think VinFast can be worth more than BMW? Let’s be serious.”