Porsche is telling investors that it can be more profitable selling EVs ahead of its potential listing.
This is at least according to Chief Financial Officer Lutz Meschke.
During this week’s Porsche Capital Days, Meschke noted that he sees Porsche’s EV margins reaching parity with combustion vehicles within two years.
Meschke’s comments were echoed by Porsche CEO Oliver Blume, who said:
Our target is to selectively expand higher-margin segments and to leverage electric-vehicle pricing opportunities.
Porsche is an interesting spot.
The company is pursuing an IPO at a time when most auto manufactures are trying to steady their supply chains.
But at the same time, Porsche is miles ahead of their rivals Ferrari and Aston Martin in electrifying their lineup.
However, Porsche is still behind Tesla in terms of production and sales, even with the success of the Taycan.
For Porsche to reach Tesla’s output, the company will need to overhaul factories, retrain workers and secure battery units or the raw materials to produce batteries.
At least to say, it is an uphill battle for the German automaker at a time when supply chain constraints are still hurting the auto industry.
Porsche currently has the sole EV, the Taycan.
The Taycan is their best-selling model, but the combustion Porsche 911 is still the company’s most profitable model.
In addition to the Taycan, Porsche plans to release the Macan SUV in 2024 and a luxury SUV positioned above the Cayenne at some point.