Vitesco Technologies VTSC
Vitesco trades at €2.6B EV — less than its ICE business alone is worth (€2.9-4.3B at peer multiples); buy the stock and get the high-growth EV-powertrain unit for free.
Thesis
Vitesco Technologies, a German auto-parts supplier spun out of Continental AG in 2021, trades at just €2.6 billion enterprise value despite housing two distinct businesses. The legacy ICE-powertrain unit ('Chocolate') generates ~€6.4B in stable revenue and ~€800M EBITDA — implying €2.9-4.3B of standalone value at peer multiples of 0.5x sales, 5x EBITDA, and 8x EBIT. The hidden gem is the EV-powertrain unit ('Peanut Butter'): a leading supplier of inverters, e-axles, and battery-management systems to Hyundai's E-GMP, Stellantis, and Renault, with a €27B order backlog and a book-to-bill above 4x. Greenlight projects Peanut Butter to reach ~€11B revenue and ~10% EBIT margins by 2030. At today's price, you pay less than peer-multiple value for the ICE business and get a hyper-growth EV pure-play for free.
SCQA
Vitesco is a German auto-parts supplier spun out of Continental AG in 2021, operating both a stable ICE-powertrain business and a fast-growing EV-powertrain franchise supplying inverters and e-axles to Hyundai, Stellantis, and Renault.
The market treats Vitesco as a single low-growth ICE supplier and ignores the EV unit, even as anti-value sentiment drives capital away from anything ICE-adjacent and into unprofitable EV pure-plays at premium multiples.
Greenlight is long Vitesco at €60.25 per share and frames the trade as a sum-of-parts arbitrage: buy the whole company because the ICE segment alone more than covers the enterprise value.
ICE peer multiples imply €2.9-4.3B for that segment alone — already above the €2.6B current EV — making the EV powertrain franchise (potentially worth €6-30B by 2030) effectively a free option.
The three reasons
- 1
Vitesco's €2.6B EV is below the standalone ICE-peer value of €2.9-4.3B
- 2
EV-powertrain unit has €27B backlog and ~20% revenue CAGR to 2030
- 3
Trades under 3x 2026 EBIT — arguably the cheapest auto-parts supplier worldwide
Primary demands
- Buy Vitesco at €60.25 per share
- Recognize the SOTP gap: ICE peer-multiple value alone exceeds the entire enterprise value
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (6)
Notes
Classic Einhorn Sohn presentation built around a code-name reveal device: 'Chocolate' (ICE business) + 'Peanut Butter' (EV business) = 'Reese's Cups' (Vitesco). The narrative arc holds the ticker until slide 45 to force the audience to evaluate the SOTP on substance first. Not an activist campaign — purely a long thesis pitched at Sohn 2023; no demands on management, no proxy fight, no stake disclosure. Heavy use of stock photos, cartoons, and CartoonStock clips for levity. SOTP arithmetic is the engineering of the deck (slides 11-18 set up Chocolate's value, 19-37 set up Peanut Butter, 40-44 collapse them into the 'free' gap). Visual craft is basic PowerPoint with dark-blue gradients; the cleverness is in narrative structure, not design.