Porsche believes its profit margins will be higher on EVs than other models in about two years
This is because buyers are willing to pay more for electric vehicles and new technologies
The 911 is currently the brand’s most profitable model
Porsche is in the process of electrifying its lineup and it believes that its EVs will become more profitable than gasoline-powered vehicles in only about two years.
Electric vehicles are often not very profitable for their makers since they are more expensive to manufacture than vehicles equipped with combustion engines. This is why most EVs are more expensive than comparable models powered by gasoline.
For luxury brands, this is not the case however because they can charge more money for their EVs without pricing them out of their buyer’s range.
That is why Porsche believes it will be able to make more money from selling electric vehicles than gasoline-powered models in only about two years.
According to the company, buyers are willing to pay more to have access to the latest technologies, which include electric powertrains.
This will allow Porsche to increase its profit margins on EVs without affecting its sales too much. Since the brand wants to have 80% of its sales be electric vehicles by 2030, it was critical that the company find a way to make EVs more profitable.
Currently, the Porsche model that generates the most money per sale is the 911 but this will change with the arrival of the electric Macan, which should arrive in about two years despite having been delayed due to software issues.
Since the currently inflated prices of lithium are expected to come down in the next few years, automakers’ margins on their EVs will naturally increase without the customers having to pay more.