Porsche joins Tesla in warning about high rates
$Tesla (TSLA.US)$ $PORSCHE AUTO HL SE (POAHY.US)$ The article reported that German luxury brand Porsche and EV stalwart Tesla make strange bedfellows, unless it comes to warning about high interest rates crimping demand. Following the release of its year-to-date Q3 financial results, Porsche warned that inflation and the effect of high rates were a concern.
Media reported that Elon Musk is pessimistic about the economy that drove the share price down after Q3 earnings announcement. Porsche warning showed Elon Musk's view about the high interest rate risk is real and EV companies who don't think ahead and be prepared will make a loss (or continue to make a loss).
Quote:
Prior to Porsche's warning, Tesla CEO Elon Musk railed against the effect of high rates during the EV maker’s Q3 earnings conference call last week.
Prior to Porsche's warning, Tesla CEO Elon Musk railed against the effect of high rates during the EV maker’s Q3 earnings conference call last week.
"Governments increased interest rates heavily ... that creates a situation where customers are quite reluctant [to invest in] a new product," Porsche CFO Lutz Meschke said in a call with reporters.
Source:
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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71229336Bedbugguy : The majority of Porsche buyers pay with cash. Why would they worry about interest rates? I have a friend who is a dealer in Virginia Beach he said 90% of his customers are cash buyers.
ZnWC OP 71229336Bedbugguy : It doesn't matter whether you pay by cash or credit, rate hike affect demand. Rate hike sole purpose is to curb demand to bring down inflation indirectly impact Tech stocks like EV and more.
egan1 71229336Bedbugguy : Porsche holding owns a large share of Volkswagen shares and most people buy a VW and all of its other brands are financing. that being said I like POAHY @ $5