Despite the double-digit growth in profits and revenue, Porsche is facing challenges in its supply chain, which is hindering the increase in electric vehicle production capacity.
On Wednesday, Porsche released its financial report for the first half of 2023, showing a growth in both revenue and profits. Operating profit increased by 10.7% YoY, reaching 3.85 billion euros, while operating revenue grew by 14% YoY, reaching 20.43 billion euros.
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At the same time, deliveries increased by 14.7% compared to the same period last year, indicating market recovery. However, it also serves as a warning of a potential slowdown in future market growth.
It is worth mentioning that Porsche pointed out that supply chain issues have significantly affected the production volume of its only mass-produced electric vehicle.
During a conference call, Porsche's CFO, Lutz Meschke, stated:
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Porsche is facing &#34;significant challenges&#34; in ensuring the supply of components such as high-voltage heaters for the Taycan electric vehicle. Achieving the goal of electric vehicle sales accounting for more than 12% of total deliveries this year may be difficult, depending on whether the supply chain issues can be resolved in the second half of the year.
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Porsche's CEO, Oliver Blume, also commented:
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There is no week without supply chain issues. We must be very flexible, and due to the geopolitical uncertainties worldwide, we still face many unknown factors.
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The Taycan GTS is the first all-electric vehicle in Porsche's GTS series, with a range of 246 miles and an acceleration time of approximately 3.5 seconds from 0 to 60 mph. Next year, Porsche plans to launch an electric version of the Macan SUV, followed by all-electric versions of the 718 sports car and Cayenne SUV.
However, if Porsche wants to expand its electric vehicle lineup, it needs to address its supply chain issues first. Analyst Daniel Roeska from Bernstein stated in a report to clients:
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Concerns about performance in 2024 will become apparent in the second half of this year, and the e-Macan may also face a delay in its launch.
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Nevertheless, Blume pointed out that despite the ongoing global economic headwinds, the luxury goods market is more resilient than the mass market. He stated that while the company aims for sales growth, it will offset cost increases by maintaining stable prices.

POAHY

Porsche's Chief Financial Officer, Lutz Meschke, stated that there are "significant challenges" in ensuring the components for the Taycan electric vehicle, making it difficult to achieve the goal of electric vehicle sales accounting for over 12% of shipments this year.

Can't handle the supply chain! Porsche's only mass-produced electric car can't keep up with production capacity.