Porsche believes it can make more profit by producing electric vehicles than its current combustion engine models.
Porsche chief financial officer Lutz Meschke says there is more potential to raise prices of electric vehicles than combustion models. He added that the carmaker’s EV margins will reach parity with combustion engines in two years and that customers will be willing to pay more for the new technology, per Automotive News.
The automaker predicts that 80 per cent of the vehicles that it sells by the end of this decade will be electric. It also says that EVs will account for half of the luxury vehicle market in 2031.
Among the most important new electric vehicles being readied by Porsche is the all-electric version of the Macan. While many important details about this vehicle remain uncertain, it is expected to cost more than the combustion-powered Macan. Porsche also recently revealed that it is readying an electric luxury SUV that will be positioned above the Cayenne.
Porsche is planning a public listing to help fund its electric transition. The IPO has been in the works for many months and not too long ago, some bankers involved in the move had valued the car manufacturer at more than €80 billion ($81.89 billion). However, it recently emerged that a large markdown may be required for the IPO, meaning Porsche may need to settle for as little as €60 billion ($61 billion).
Bankers involved in the deal are expected to survey market conditions at the end of August while a final Porsche board decision will come shortly after. Most sources suggest that an IPO on the Frankfurt Stock Exchange will occur towards the end of the third quarter or early in the fourth quarter.