First news said that Porsche has a strategy to gradually electrify its vehicle lineup, with the goal of having electric cars represent 80% of its sales by 2030. In this plan, Porsche aims to eventually make its iconic 911 model the only one with an internal-combustion engine, moving towards a fully electric portfolio. This move has garnered attention, especially from environmentalists, due to Porsche's investment in e-fuels and its efforts to advocate for the EU to permit sales of such vehicles beyond 2035. While Porsche has invested in e-fuels through its association with HIF Global, the company's commitment to electric mobility remains its main focus. The Macan, 718 sports car, and Cayenne will be gradually electrified, but the 911, accounting for 13% of sales in 2022, will continue to have a combustion engine for as long as possible. Me personally, I like the idea that they will try to keep the, as mentioned, iconic 911 model on fuel for as long as possible. However, I also like the idea of them following the trend and going electric.
Second news, which are more targeted on their performance, was that Porsche AG posted a 10.7% increase in operating profit, reaching 3.85 billion euros in the first half of the year, and it affirmed its outlook for the second half, despite the global economic situation being described as tense. The luxury carmaker witnessed a 14% surge in revenue, totalling 20.43 billion euros, driven by a 14.7% rise in deliveries, indicating a recovery from the setbacks faced last year due to factors like China's lockdowns. While Porsche encountered higher costs, particularly related to marketing the Porsche Cayenne and digitizing its operations, it managed to maintain revenue through steady pricing and increased sales. The company plans to raise prices in Europe and the U.S. by 4-8% in the second half to counteract elevated costs that impacted its first-quarter returns. Now, this news I don’t like that much, as that means that their prices will be even higher. However, from the investors point of view, it is surely a good sign, that they will make more profit. I decided to enter the trade and buy some shares of Porsche.
Movement of Porsche stocks since coming to the market. (Source: Investing)*
* Past performance is no guarantee of future results.