More electric car sales? Good. More stock sales? Bad. That's one theory behind BMW and its stock taking a hit of almost five percent earlier this week after the company forecast lower fourth-quarter earnings largely on its stepped-up investment in electric vehicles like its i3.

While the reasons behind stock-price movements are often a mystery and difficult to pinpoint, Arndt Ellinghorst, head of automotive research for brokerage house International Strategy & Investment, certainly subscribes to the theory that BMW's big investment in its i sub-brand is causing some investors to get squeamish. In an interview with Bloomberg Television cited by PlugInCars.com, Ellinghorst calls BMW's investment a "huge bet," and while he views the commitment as a great way to address the challenge of meeting more stringent European emissions standards, he notes that German consumers tend to be very committed to the traditional internal combustion engine and are wary of EVs.

Still, Bimmer has high hopes for both its i sub-brand and the i3, which makes its European debut this month and starts US sales next year. As of mid-October, Bloomberg Businessweek reported that more than 8,000 i3s have been pre-ordered, accounting for 80 percent of the units BMW planned on producing next year. The i3 will be priced at about $41,000, while the i8 plug-in hybrid supercar, which also debuts next year in the US, checks in at about $136,000.


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  • 92 Comments
      • 1 Year Ago
      Pricing a small city car that high won't help with this "huge bet" either. For around that price you can get a Bluemotion VW Golf or diesel bmw 3 series in which you'd ride 10x more comfortably and still get pretty decent consumption
      jeff
      • 1 Year Ago
      Well, There are 9000 reservations for the i3 in Europe and the US has not even started taking orders yet. BWM has said that there is a 5 month back log and they do not officially go on sale until November 16th... Love it or hate it, this car is going to be a hit. I put a deposit on one and love the quirky futuristic looks, especially the interior. If you do not like it I under stand. It is not your typical car. I can't wait...
        Iamazing
        • 1 Year Ago
        @jeff
        You think 9000 is a lot? They could produce that in a month.
          jeff
          • 1 Year Ago
          @Iamazing
          That is 9000 Before they are even officially on sale....
        korblalak
        • 1 Year Ago
        @jeff
        Congratulations Jeff. What color did you get? the i3 is a very hip car.
          jeff
          • 1 Year Ago
          @korblalak
          Cant officially order one yet in the states. I just reserved a slot with the dealer. I'll most likely get the Orange with the full leather interior or the Orange with the wool/leather interior. I am not a fan of the all white cloth....
          jeff
          • 1 Year Ago
          @korblalak
          I should note that there were already 7 people ahead of me in line....
      Cruising
      • 1 Year Ago
      Electric cars are here and will stay, it could be practical alternative for me but I don't have the means to sustain a electric car for now.
      CoolWaters
      • 1 Year Ago
      Exactly, what yoatmon said. The market is now dominated by AI BOTs. Which AI bot is so stupid as to punish a company for producing an EV. More likely, it's a Hedge Fund stomping onto the stock for a short term price push down. These guys don't give a damn what BMW builds, they only want a STORY they can sell THIS Week, and all the suckers can jump on, while they Assault them with SPOOFED trades, 90% of which they will cancel as they manipulate the market. This is a play to make their short position successful.
      danfred411
      • 1 Year Ago
      The revolution will be hard on the old garde. There is only a narrow config where you can make money on electric cars and most of them don't have the thinking for it I believe. I almost feel sorry for them.
      Hal
      • 1 Year Ago
      The i3 grew on me and now I quite like it a lot. I think folks will be pleasantly surprised if they give it a chance.
      Iamazing
      • 1 Year Ago
      That does not look like a luxury vehicle. That is a problem for BMW.
      Ae Neuman
      • 1 Year Ago
      it's not just the i- cars, bmw's whole ultimate drivers car culture has gone down the toilet. instead we get an increasingly fragmented model range full of turkeys like the ugly gt series and useless models like the x6. the company needs to return to basics fast.
        Cyrus Brooks
        • 1 Year Ago
        @Ae Neuman
        I agree there was a time not too long ago that BMWs were identified as driver's cars for enthusiasts. Their current model range is full of over weight, over computerized, stylistic misfits. The i3 does nothing to address this.
      2 wheeled menace
      • 1 Year Ago
      I'd sell stock too if i found out that my favorite company was starting to build cars this ugly..
        Lachmund
        • 1 Year Ago
        @2 wheeled menace
        yet there are enough people liking it inluding myself. so this car is not for you. i mean...it's not like other abominations...old 7 series, X6 or actual 1 series wouldn't sell!
          jeff
          • 1 Year Ago
          @Lachmund
          It looks nothing like the Aztec to me....But who really cares...???
          Joanne Dochev
          • 1 Year Ago
          @Lachmund
          Let me guess... you also thought the Pontiac Aztec was the pinnacle of car design...
        2 wheeled menace
        • 1 Year Ago
        @2 wheeled menace
        Some people were really fond of the Pontiac Aztek as well. .. i think that this is even far out into bizarro-world design than the Aztek..
        jeff
        • 1 Year Ago
        @2 wheeled menace
        I placed a deposit yesterday.... I love the futuristic look so you opinion is not the definitive answer...
      Matt
      • 1 Year Ago
      BMW stock should be punished for the abominations that are the 3GT/5GT/X4/X6/etc, not for making an electric car.
      mikeybyte1
      • 1 Year Ago
      Funny how investors also got upset with Tesla for saying they were pouring a ton of money into R&D. Too many short sighted people out there. I applaud BMW for taking the plunge here, especially in the CFRP construction process. Long term that will be a big win for them, not just in their electric cars but just in general automotive manufacturing.
      Grendal
      • 1 Year Ago
      Buying opportunity for those interested in BMW.
        Grendal
        • 1 Year Ago
        @Grendal
        BMW (BAMXF) closed at $109.67 today. It's recent low was $94. on Sept 1 and had a recent high of $116 on October 25th. It hardly seems like they've taken much of a hit over this.
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