Aston Martin share price could surge higher on Covid-19 vaccine hopes

Aston Martin Lagonda has struggled, with the company weighed down by the economic coronavirus pandemic at a time when it is executing a major turnaround strategy. But things are looking up for the luxury car maker.

  • Aston Martin Lagonda shares up 54% as Covid-19 vaccines lift investor sentiment
  • The car maker still faces challenges as it looks to ‘reset’ as a true luxury company
  • Aston Martin Lagonda shares bolster by Mercedes-Benz commitment to lift stake to 20%

Aston Martin shares have soared 54% as Covid-19 vaccines have lifted investor sentiment across global equities.

But the luxury car maker still has a long road to recovery, with the company seeing its share price crash after its initial public offering (IPO) back in 2018 where it debuted at £19 per share.

Aston Martin shares are trading 6% higher at 80p per share at the time of publication, with the stock down 54% year-to-date.

Aston Martin aims to ‘reset’ business in 2020

This year has come with lots of challenges, with Aston Martin weighed down by the economic impact of the Covid-19 pandemic at a time when it is executing a major turnaround strategy aimed at refocusing it as a luxury car maker.

The company has developed a new business plan that aims to generate revenues of around £2 billion and £500 million of adjusted EBITDA by the 2024/25 financial year.

To achieve this, Aston Martin is looking to develop new technologies via an partnership with Mercedes-Benz and has taken on new shareholders in the form of family office, Zelon Holdings, and Permian Investment Partners to strengthen its balance sheet.

‘This is truly game changing,’ Lawrence Stroll, executive chairman of Aston Martin Lagonda, said. ‘We now have the right team, partner, plan and funding in place to transform the company to be one of the greatest luxury car brands in the world.’

Aston Martin stock bolster by Mercedes-Benz upping stake to 20%

Shares in the luxury car maker were bolstered in October after Mercedes-Benz announce that it plans to lift its stake in the company to 20% over the next few years.

Mercedes-Benz also announced that it had entered into a new strategic technology agreement and enhanced partnership with Aston Martin in a move that will help the pair develop next generation hybrid and electric powertrains and other vehicle components and systems.

‘We already have a successful technology partnership in place with Aston Martin that has benefited both companies,’ Wolf-Dieter Kurz, head of Product Strategy at Mercedes-Benz Cars, said. ‘With this new expanded partnership we will be able to provide Aston Martin with access to new cutting-edge technologies and components, including next generation hybrid and electric drive systems.’

‘The supply arrangements for these new technologies will be on agreed commercial terms. We look forward to continuing to work together with Aston Martin and we wish the company every success in its next stage of growth,’ he added.

How to trade stocks with IG

Looking to trade Aston Martin Lagonda and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Aston Martin Lagonda Global Holdings PLC’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.