Featured Taycan Expected to Turn Profit in 2023

Discussion in 'General Topics' started by Tye, Sep 16, 2019.

  1. Tye

    Tye Administrator

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    Per https://www.bloomberg.com/news/arti...orsche-911-is-the-most-profitable-car-of-2019

    What’s more, the 911 debut will pull double duty as it counterbalances expected losses from the just-released Taycan. Porsche is expected to make 20,000 to 30,000 of the six-figure electric sedan, representing a $6.6 billion investment from the brand, including a new factory near the company’s headquarters in Stuttgart, Germany.

    “Given the pomp and ceremony for recent EV launches, Porsche’s introduction of the new 911 Carrera was relatively low key,” Dean says. “[But] the sports car is well-timed, as it will compensate for the transition to battery-electric vehicles, which starts with the new Taycan, its least-profitable model.”

    In an interview with Bloomberg TV, Porsche chairman Oliver Blume said the Taycan will eventually will generate a “good margin,” especially in the top-end versions, although returns won’t be as high as for other models. Dean pegs 2023 at the point it will turn a profit, by which time battery prices will have declined significantly; in the meantime, Porsche pushing its higher-margin “Turbo” version first is a smart strategy. (In this case, the term “Turbo” is used as a branding label to refer to the more expensive Taycan variants, since an actual electric turbo is impossible.)
     
  2. BayAreaKen

    BayAreaKen Member

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    I saw this graph in the current issue of The Economist magazine. Notice how profitable Porsche is per unit. These guys know how to massage the brand image and then profit from it like no other manufacturer. Suffice it to say, they could charge a lot less. But they don't want to. They need to maintain the aura of exclusivity.

    Porsche.jpg
     
  3. Rotordude

    Rotordude Well-Known Member

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    Damage control? ICE Porsche’s sell at high margins because they have an established market(eg 911). EV Porsches are a brand new market for them. Can’t use ICE market formula on EV market, IMHO. But this is what Porsche seems to be doing.
     
  4. artdept

    artdept Active Member

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    Yeah. $500 for mp3 file that makes the Taycan sound like a ice car. Going through the config, it’s obvious that they know how to make money.
    At least they didn’t charge me to remove the turbo badging from the back.
     
  5. gwestr

    gwestr Active Member

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    No chance. They won’t have sold 10,000 units by then.
     
  6. charliemathilde

    charliemathilde Well-Known Member

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    barring randomly bursting into flames while parked, there’s no chance Porsche doesn’t sell 10K units in 4 years. They’ll announce the lower priced 4S in a month. Next year, perhaps even early spring, a “base” model at an even lower price. They sold over 8000 panamera last year and this car is vastly better

    for whatever irrationality, the market for “not Tesla” is large enough. Plus this is more a halo vehicle. They’ll introduce the EV Macan in 2022 and that’s where the money gets printed.
     
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  7. Friedrich

    Friedrich Well-Known Member

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    Don't think Porsche buyers are lower income people like Tesla buyers. According to market research, the average Porsche buyer has income of $511,000. The average Tesla buyer has household income of $143,000. (the average Mercedes owner has household income of $250,000) There is definitely some market overlap as many Porsche buyers will have a Tesla as their 2nd everyday car, but for the most part, the target market is completely different for the two companies. From the marketing perspective, you have prestige from owning a Porsche, you are a hipster if you own a Tesla. There is no prestige in owning a Tesla, but its really a great cool car.

    I will bet that by December 2020, they will have sold 12,000 Taycans in China, 10,000 in Europe and 8000 in the USA. China will unquestionably be the number 1 market for Porsche in 2020, not just for Taycan, but for the company as a whole. That is probably a conservative estimate; however, the question will be how much will the Panamera be cannabilized.
     
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  8. TheSnape

    TheSnape Well-Known Member

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    I think as Tesla gets more established, the Prestige question may be changing as it gets more prestigious. But Porsche has the advantage as they're more established as a prestigious brand.
     
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  9. charliemathilde

    charliemathilde Well-Known Member

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    Tesla is in a catch-22 on that front. Their corporate mission is to make EV accessible not exclusive. Their business focus is on the model 3 and model y. They can’t go up market without destroying their purpose and business model.

    They can focus on reputation, and improving their build quality and chassis dynamics. But they’ll never be as prestigious as Porsche because they’d have to abandon like 90% of their customers.
     

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