The Stuttgart company places 25% of its shares on the market for 85 billion euros while in Detroit and Paris they are preparing to create and list companies dedicated only to zero-emission cars: for now it is important to maximize the value
Gianluigi Giannetti
One fact, one click. The listing of Porsche on the stock exchange best captures the situation that the automotive world is experiencing, therefore the consequences that come from it to operators in the sector and motorists. The sale of 25% of the non-voting shares of the Stuttgart brand, as authorized by the Volkswagen group which currently controls it 100%, serves to “maximize value”, an expression to which we will try to give the meaning it has in the world. financial, assuming that it has some also in the industrial sector. The Porsche public offering could be launched between the end of September and the beginning of October, with an overall valuation of between 60 and 85 billion euros. The figure will be essential to launch the challenge to Tesla and therefore allow the Volkswagen group to intensify investments in the electric car field. A method to bring investor confidence to the collection, but certainly not the only one, if it is true that the other expression currently very trendy is “spin-off”. So let’s think together of capitalization and bullish trends among investors: the electric car here is unrivaled.
having to reign enthusiasm
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Porsche does not suffer but dominates the battery car market, but from a privileged point of view. In 2021, it sold 41,296 units of its Taycan sports car, more than double what it recorded in 2020, while its total turnover reached 33.1 billion euros, with 5.5 billion in profits and a total of 301,915 cars marketed. It is clear that monetizing its value on the stock market is the indispensable move for Volkswagen, which last year sold 451,131 electric cars, in third place overall in the world after the Chinese Saic, with 609,730 cars, and Tesla. The American company has won 936,000 new customers, for a corresponding of 54.83 billion euros in turnover, but significantly with the same profit as Porsche, or 5.5 billion. If the latter should be the main indicator for evaluating a company, then electricity already goes beyond logic. At the time of writing, Tesla’s capitalization, which is the total market value of the shares, is $ 846.69 billion, just under $ 856 billion. The capitalization of Porsche shares, considering how 25% of them can be sold for 85 billion, would therefore not exceed 340. Tesla, through the stock exchange, has therefore largely maximized its value by exploiting over the years the wave of enthusiasm of investors towards the battery-powered car, and only in recent months by seriously increasing production, which by 2022 will reach 2 million vehicles.
Stockholm syndrome
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Porsche will use the coming years to evolve its product range, adding to the next generation of Taycan from 2023 also an electric variant of the new Panamera sedan built on the same SSP Sport architecture, but which will still leave room for versions of the model with hybrid and traditional at least until 2030. Same multiple possibilities for the new Macan and Cayenne, medium and large SUVs but still available in zero-emission or traditional editions, starting from 2024. Moreover, the Stuttgart brand is a brand that does not have the obligation of very large numbers. He does not find himself hostage to the electricity and the pressures of the financial world that are forcing the generalist companies to change, giving the idea of a forced falling in love as happens to the victim towards the jailer, in the Stockholm syndrome. Having the need to obtain huge capital from the financial market. To “maximize value”, car manufacturers are cynically left with only two options, that of switch, ie the forced passage to a 100% battery-powered range by the second half of the decade, or that of the “spin-off”. “We literally split our company in half,” said Jim Farley, CEO of a Ford Motor Company that splits into two distinct production units, one called Ford Blue which will continue the development of traditionally powered vehicles, and one second baptized Ford Model and to which the entire horizon of electric mobility is entrusted, ready to be listed, being able to tickle the strings that most interest operators on the stock exchange. In recent months, General Motors has also been the subject of rumors that predicted an identical strategy, the spin-off, while the tone of the reorganization plan that in the autumn will illustrate Luca De Meo, number one of Renault, is now certain. The French group would keep for itself the activities related to the electric car business, creating a new company also in this case to be listed on the stock exchange, but would give up control of the division into which the production of traditional and hybrid combustion engines will converge, in which the Chinese automotive group Geely and the Saudi oil company Aramco with 20% are expected to join. According to further rumors, we could soon see the spin-off mechanism replicated for other car brands that do not adopt the all-too-clear choice of the Switch, quickly. All this with sector operators who cannot forget the nightmare of the Nio case, the Chinese startup of luxury electric cars that after a speculative ride in January 2021 reached a capitalization of 100 billion dollars, which dropped to 28.9 billions at the time of writing, with shares now past their all-time low despite the tepid rise in sales. After maximizing the value, the electric car will have to deal with the real world.
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