Ampere Sets Targets for 2025 and Beyond

by webmaster

Ampere, the electric-vehicle and software company under Renault, is gearing up for a public listing and has announced its growth targets. By 2025, the company aims to achieve revenue exceeding €10 billion ($10.88 billion) while facing competition from more affordable cars manufactured in China as well as Tesla.

In preparation for its upcoming listing, Ampere separated from its parent company on November 1. With plans to sell approximately 300,000 vehicles in 2025, the French car maker is aiming high. Looking further into the future, Ampere has set its sights on selling over 1 million vehicles in 2031, with a revenue target surpassing €25 billion.

Furthermore, Ampere anticipates reaching a break-even point in terms of profit and free cash flow by 2025. In order to sustain its growth and profitability, the company is targeting an operating margin exceeding 10% starting from 2030.

Unwavering in its mission, Ampere positions itself as Europe’s response to the competitive landscape shaped by the more affordable cars emerging from China and Tesla.

“Ampere represents the European industry’s ambitious, comprehensive, and sustainable answer to the challenges posed by the East and West,” highlighted Luca de Meo, CEO of Renault and Ampere.

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Ampere Aims for Affordable Electric Cars by 2027-2028

Ampere, the electric vehicle (EV) manufacturer, is determined to make battery-powered cars more accessible to the masses. Their ambitious goal is to match the price of Renault’s gas-powered cars by 2027 or 2028. To achieve this, Ampere plans to reduce the cost of its lower-tier electric cars by 40% between the first and second generation. Additionally, they believe their two EV-native manufacturing platforms will give them a competitive advantage in the market.

The transition to electric vehicles hinges on achieving price parity with traditional combustion engines, according to experts. Analysts consider this step vital for the widespread adoption of EVs as an alternative to gas-burning engines.

Ampere’s IPO is scheduled for the first half of 2024, pending favorable market conditions. While company CEO, de Meo, projected a valuation ranging from EUR8 billion to EUR10 billion in September, analysts believe it will be significantly lower. UBS analysts estimate Ampere’s worth to range between EUR3 billion and EUR4 billion based on a research note from September. However, Jefferies analysts expressed a preference for an alternative to an IPO, fearing it may unnecessarily dilute Renault shares.

Despite this, Renault intends to maintain a strong majority stake in Ampere’s capital. The company has garnered support from cornerstone investors, including Nissan and Mitsubishi Motors, who have committed up to EUR800 million. Furthermore, Qualcomm Technologies is currently considering investments in Ampere.

With its focus on affordability and backing from significant investors, Ampere is poised to make a substantial impact on the EV market in the coming years.

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