Porsche stock collapses after numerous problems cause demand collapse

Porsche's electric car nightmare continues now if you think I'm exaggerating about Porsche's EV nightmare then honestly either you love Porsche and you just hate anything factual said against the company or you just haven't read into this story guys I mean Porsche currently is it's not just an EV nightmare honestly Porsche as a brand it's losing brand value if you think you know oh Tesla's losing brand value because of Elon Musk well here's the thing Porsche does not do other things now Porsche is just a car company there's no question about that you can't say oh look at Porsche's growth 130% in their energy division $9.4 billion in a single quarter it's about to actually get bigger than that in the next quarter that's not Porsche Porsche Sells Cars it sells expensive cars and the most important country in the world for Porsche is China and in China Porsche's dealers are going mental and Porsche is having to significant ific L scale down its production hello my friends welcome to the channel I'm Sam Evans you're watching the electric Viking it's great to see you thank you for tuning in Yes actually it's true that Porsche does sell um as a percentage of the cars that sells more EVS than most other brands in the world that's a positive but here's the thing buyers in this premium segment don't believe Porsche's EVS are good enough to justify the price and dealers in China like I said China is the most important place of Porche it's where they to traditionally sell the most cars make the most profits well dealers there are Furious they're saying they're having to dump stock at cheap prices they have inventory and a lot of them are saying you know what it's we we don't want the cars to take them back as a result Porsche has significantly reduced production of its EVS now you might be thinking well that's great I mean who cares because Porsche will just keep making internal combustion engine cars no big deal right well actually it is in fact it's a huge big deal because if Porsche if they want to maintain their revenues right if they don't want to if they don't want their revenues to drop off by a huge percentage which they're about to and which they already are then Porche needs to do something about this Porche can't just say well Chinese people um suffer in your jocks you can just take our internal combustion cars you can just buy those it doesn't work that way customers will choose otherwise guys go to China trust me if you live if you go to China you I I I saw very few Porsches driving around I saw a lot of alternatives to those Porsche cars a lot of Premium EVS a lot of expensive looking EVS I I think I saw one Porsche take in that was it I saw a hell a lot of people driving around in xiaomi xiaomi copies su7 that's called the xiaomi that's actually people in China they think that's a basically good enough as a Porsche they do they think well you know why are we paying that we can get this xiaomi su7 or we can get e zika 001f uh for less money than a Porsche and it's better that's what people think and you know what they're probably right it doesn't really matter though if they're right or they're wrong because that's the perception from consumers in China now if you believe when I last reported on this story that I was making things up oh the Vikings just being negative about Legacy aut makers that's what he does blah blah blah blah people say this kind of stuff you know what guys you're an idiot if that's what you think if if you think I'm making these stories up honestly people say oh report your sources report your sources I don't make stories up guys everything I share on the channel is from direct it's directly from sources that don't so here's the actual truth from Porsche even Porsche been in this stuff so okay first of all Porsche have recalled 17,300 imported takan vs in China in other words every single one they've sold has been has been recalled right and it's not a small recall um due to design reasons these vehicles are experiencing brake fluid leakage um problems with braking and apparently there's been problems with Porsche takan motors in China as well Porsche is recalling yet another batch of high-end takeand EVS this is the second recall they've done for a different reason so far in China this year so you pay a premium price for a vehicle that's perceived to be maybe premium but maybe not any more premium than other cars which are way cheaper and then this is what happens and obviously Chinese consumers they don't put up with this stuff at least not for very long apparently for design reasons the front brake hoses on these vehicles May Crack and cause brake fluid to leak so if you've got one of these cars and your brake f starts leaking because the the hoses are cracking within 12 months or 6 months is that really premium and luxury well that's debatable right now here's the thing it's actually a lot worse than it sounds because Porsche recalled that all pretty much all the take NS in China because of a risk of thermal runaway of the battery so thermal runaway risks mean what what do they mean that's a nice way of saying uh the batteries were setting fire to themselves How do they know there's a thermal runaway risk you don't discover there's a thermal runaway risk because you uh you go oh look there's a little flashing light on my screen it says thermal runaway risk you discover that's happened because the car just burned itself to the ground so that was another story in China now how many of those Vehicles had that problem probably not many doesn't matter though China's consumers they read this stuff they hear this stuff right in 2022 Porsche had two recalls of take NS in China as well so numerous recalls for a premium expensive Porsche vehicle is leading to a big decline in sales and it's damaging the sales of internal combustion engine Porsches as well Porsche has cut production due to Falling demand says a recent report Porsche is reducing production of the takan in Germany due to slowing sales and a general decline they say in demand for EVS that's what Porsche says that's what the media is reporting but we know that the truth is this year electric car sales have increased worldwide by 20% that's an updated number that was released within the last 5 days it's a global figure sales have increased by 20% so Porsche is trying to say demand for EVS have gone down that's what Legacy automakers are telling us it's a load of and anyone who says that stuff should be looked at like they're an idiot it's like saying smoking is good for you right it's that dumb if you're dumb enough to believe that stuff you're like one of those morons who just reads the news and believes every single stupid thing they say whether that's Trump or whatever else I don't know guys but God how people can just believe these kinds of Lies when the facts are so easy to find I don't know and what you know what's even more amazing to me guys I've had this conversation with people in the general public like oh yeah you're wrong man I told you or they say something like oh yeah it's you know EV sales are going down all over the world and I said no no actually sales we just got them so far for the first 6 Months of the Year EV sales have increased by 20% worldwide and it's like telling someone who believes in a religion or some sort of strong belief they're embedded it's like they can't handle facts facts they don't want they want the emotion they want to they want to buy into the emotion of EB cells are collapsing cuz someone on the media told me some talking head Muppet told me this story it must be true I don't care about your facts I'm like well if you want to see the facts I can show you the data here no no no no don't want data I want to feel emotionally that EVS are going to hell and internal combustion will live forever so that's how they talk and you can't convince them with any facts Porsche right they actually sold more than 40,000 Tak hands in 2023 and they have improved them since then the new Porsche is pretty good to take in I mean I think it's a nice car but the question is how much nicer is it than other cars which cost well half the price well apparently the factory where the takan is built will soon move to a single shift in response to the lower than anticipated demand Porsche is negotiating with the Lo the local Works Council and the change apparently won't result in job losses people will just be up to spend more time surfing the web hey anyway the abolishment of German State subsidies for EVS at the end of 2023 is not to believe to be a contributor to a declining demand because those subsidies weren't even relevant for expensive Porsche Vehicles anyway now that is definitely something though that has affected sales of EVS in Germany and it is true that EV sales in Germany this year are lower by 16% versus the first half of last year probably because they have no subsidies they've abolished them completely for EVS there's none whatsoever and therefore EV Sals have declined not just in fact the majority of the the declin actually come from businesses versus personal private consumers those the demand from private consumers hasn't gone down so much in fact I don't think it's gone down at all however the Chinese market is drying up for the Porsche Tak and because of the growing number of better EVS built locally when it comes to value for money when it comes to even brand I mean realistically a lot of Chinese consumers believe Legacy automakers their products when it comes to an EV are just inferior and and kind of all the stuff that's happened over the last couple of years in China has really made people believe this stuff because Mercedes-Benz BMW they have lied about things that have happened I mean Mercedes-Benz had these problems right with the motors in their EVS they're selling these high priced EVS to Consumers consumers were coming in saying the motor experiencing problems and the dealerships were like piss off we don't we don't want to know about it no no no you're making it up and it kept on happening and it kept on happening finally Merced Ben starts recalling vehicles but they've been selling Vehicles they knew were faulty now for 11 months I reported this at the time it first happened 11 months later they have to recall them all right they're forced to by the Chinese government because there was so many thousands of pretty much everyone had bought it it was like this is a lemon so this is just one story of many that has happened in China from numerous aut makers um where battery recalls these sorts of things and China's consumers are like well we're not getting all these issues from locally made EVS Tes EVS we'll just buy them instead that is the key reason why um basically Legacy automakers have shot themselves in the foot in China and now you might be thinking who cares it's just China but they care because it's billions and billions of dollars the Volkswagen group right traditionally 40% of their sales have been in China not the case anymore 40% of their sales he's probably thinking well 40% of their sales oh well I mean maybe say 10% of the profit it's not 40% of their sales and 50% of their profit like imagine if someone came along and said to you hey um John whatever your name is um your business next year it's profits are going to go down by 50% what are you going to do your debts are going to stay the same your profits going to go down by 50% what are you going to do that put you in a pretty terrible position and so if you're thinking a lot of the rhetoric that I talk about on this channel is false like oh uh he's saying that niss screwed well here's the thing facts are facts if your profits decline by 50% and your debts stay the same or if they go down by 10% what do who you do what will Porsche do what do you guys think since July of last year Porsche's stock price has collapsed by 21% but if you have a look at this stock price chart right you'll see Porche started to recover some of its losses however on the 11th of June Porsche stock price collapsed in the space of minutes by 18% that is a massive fall that's a very good reason for this well essential crash in the value of Porsche stock investors believe the company is no longer prepared for the future and this is not really an emotional thing it's simply logical yeah you know what guys the Porsche not 11 very nice internal combustion engine car it's fantastic but is it the future of the automotive industry well investors are starting to think maybe it's not 5 years ago poor stock was sitting at 67 fast forward to 2021 poor stock hit an all-time high of 99 well 3 years later and the stock has more than haved from €99 all the way down to to €41 meaning the stockers essentially collapsed now the media are busy talking about Tesla and its stock performance but over that period of time Tesla has returned around 400% to investors Porsche has returned minus minus 34% but that does not include inflation yeah things are looking pretty damn bad for Porsche and for some bizarre reason the media have completely ignored this story

Channel: The Electric Viking

Views: 33,991

Keywords: electricvehicles, evs, #electriccars, electricfuture

Id: NKRJDK8dkH4

Length: 14min 5sec (845 seconds)

Published: Mon Jul 08 2024