Porsche thinks it can make more profit selling EVs

Legacy automakers have not been hugely transparent about how profitable their initial battery-powered models are.

One exception is Volvo Cars, which this week got a shout-out from Bernstein analysts for its degree of disclosure. The company’s EVs — which were 12 percent costlier than their combustion cars — generated a 15 percent gross margin in the second quarter, short of 21 percent for its ICE vehicles.

On the bright side, Volvo’s EV margins improved by one percentage point from the first quarter.

The exclusively combustion-powered 911 remains Porsche’s most profitable model. The brand is preparing to introduce an electric version of its popular Macan SUV. The full-electric crossover is likely to be priced well above the roughly $60,000 that the base gasoline version commands.

Porsche is also planning a new electric luxury SUV positioned above the Cayenne, which starts at around 83,000 euros ($84,800).

The Macan has been delayed and will not hit showrooms until 2024 because of software issues at VW’s Cariad unit.

Porsche is now trying to chart its own path on software, but the problems still raise concerns about future EV introductions.

There is no launch date yet for the luxury SUV, and executives said little else about the model other than that it will be made in Leipzig, Germany.

Blume says Porsche is unique because the brand holds luxury appeal and benefits from economies of scale — after all, it sold 27 times more cars than Ferrari last year.

Still, sustaining that kind of output during the electric shift, and growing margins at the same time, will be quite the challenge.

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