Porsche Expects Greater Profit Margins for its EVs in the Near-Future
Over the past few years, several automakers have stepped forward to share their views on the profitability of electric vehicles compared to gasoline-powered models, and specifically the former may outpace the latter. At GM, for example, CEO Mary Barra has already put forward the year 2023 as the tipping point.
Porsche is of the opinion that within two years, the production costs of EVs should drop enough for profit-margin parity between those types of vehicles and ICE models. This opinion came straight from the mouth of Porsche CFO Lutz Meschke at the company's Capital Markets Day last week. If the production costs are the same, but EVs sell for more than equivalent gas-fed vehicles, it stands to reason that profit margins will be higher. “Our target is to selectively expand higher-margin segments and to leverage electric-vehicle pricing opportunities,” Porsche CEO Oliver Blume told investors.Photo: Auto123.com Porsche Taycan Cross Turismo By the end of the decade, Porsche expects 80 percent of its vehicles to be electric.
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