Volkswagen’s Two-Front Strategy: Selling Power to the Grid While Shedding Bugatti

Volkswagen plans vehicle-to-grid energy storage for German homes by Q4 2026, while Porsche exits Bugatti-Rimac. Stock slides amid sales drop and cost-cutting.

Volkswagen is simultaneously pushing into the future of energy storage and stepping back from one of its most iconic brands. The German automaker plans to launch a vehicle-to-grid (V2G) offering for German households in the fourth quarter of 2026, while its Porsche subsidiary has just sold off its stake in Bugatti-Rimac to a New York-based investment consortium led by HOF Capital.

The moves come as the Wolfsburg giant navigates a turbulent period marked by sliding sales, a depressed share price, and a sweeping restructuring under CEO Oliver Blume.

Turning Cars Into Cash Machines

The V2G initiative, developed with Volkswagen’s energy subsidiary Elli, will allow owners of electric vehicles on the MEB platform to feed electricity from their car batteries back into the grid in exchange for compensation. Pre-registration opens in June 2026. The full package includes the vehicle, a smartphone app, an electricity tariff, a smart meter, a bidirectional wallbox, and installation.

Market estimates suggest customers could earn up to €900 annually. The payout depends on the flexibility they offer in charging schedules, not on actual trading performance. Volkswagen says roughly one million vehicles in Europe are already technically capable of supporting the feature. The upcoming ID.6 software update will extend compatibility to additional battery sizes.

The timing is ambitious. Volkswagen’s global deliveries fell 4% in the first quarter of 2026 to 2.05 million vehicles. The EV picture was particularly grim: sales in China plunged more than 64%, while US electric vehicle deliveries collapsed 80% to just 4,000 units through March. The company has halted US production of the ID.4 and is instead ramping up assembly of combustion-engine Atlas SUVs. Europe and South America provided some relief, posting gains.

Exiting the Hypercar Era

While Volkswagen pushes into new energy services, it is simultaneously exiting the ultra-luxury space. Porsche has sold its 45% stake in the Bugatti-Rimac joint venture and its 20.6% holding in the Croatian Rimac Group to a consortium led by HOF Capital. Porsche CEO Michael Leiters said the divestment frees up resources to accelerate the brand’s own transformation.

The sale is part of a broader corporate diet. Blume has pledged to cut global production capacity by roughly one million units as Volkswagen seeks to become leaner and more competitive.

Stock Under Pressure

Investors have taken a cautious view. Volkswagen’s preferred shares trade at around €87, down roughly 18% since the start of the year and nearly 20% below the 52-week high of €108.30 hit in December 2025. The stock is hovering just above its 52-week low of €85.34.

Management has guided for an operating margin of 4.0% to 5.5% for the full year 2026, while analysts had penciled in 5.3%. That compares with a margin of just 2.8% in 2025. RBC Capital Markets remains bullish, rating the shares “outperform” with a price target of €131. Analyst Tom Narayan said Volkswagen’s “China for China” strategy is realistic, noting that autonomous driving is no longer a differentiator in the Chinese market but a baseline requirement.

The next major catalyst comes on April 30, when Volkswagen publishes its full first-quarter results. Markets will be watching for details on the cost-cutting program, the trajectory of EV orders, and confirmation of the proposed dividend of €5.26 per preferred share.

Whether the V2G business can eventually become a margin driver depends on how quickly Elli builds its customer base — and how soon EV sales recover in Volkswagen’s core markets.