Legacy automakers haven’t been hugely transparent about the profitability of their early battery-powered models.
One exception is Volvo Cars, which this week received a shoutout from Bernstein analysts for its degree of disclosure. The company’s electric vehicles – which were 12% more expensive than their combustion cars – generated a gross margin of 15% in the second quarter, compared to 21% for its ICE vehicles.
On the positive side, Volvo’s margins on electric vehicles improved by one percentage point from the first quarter.
The exclusively thermal 911 remains Porsche’s most profitable model. The brand is preparing to present an electric version of its popular Macan SUV. The all-electric crossover will likely cost well above the roughly $60,000 that the base gas 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 won’t hit showrooms until 2024 due to software issues in VW’s Cariad unit.
Porsche is now trying to chart its own course on software, but the issues are still raising concerns about future EV introductions.
There’s no launch date for the luxury SUV yet, and executives haven’t said much else about the model other than that it will be manufactured in Leipzig, Germany. .
Blume says Porsche is unique because the brand has a luxury appeal and benefits from economies of scale – after all, it sold 27 times more cars than Ferrari last year.
Yet maintaining this type of production during the switch to electricity, and increasing margins at the same time, will be quite a challenge.