Tesla Inc. : Porsche is still far from Ferrari’s share market weight… per sold car

(BFM Bourse) – The German carmaker has had a flawless run since its arrival on the stock market. However, its valuation is still below the industry leader compared to the number of vehicles sold.

Barely a week after the IPO, Porsche is already grilling courtesy of parent company Volkswagen. On Thursday, the maker of the famous 911 exceeded the market value of the carmaker, which includes brands such as Audi, Skoda and Seat. With an action above 90 euros on Thursday, Porsche weighed more than 82 billion euros on the stock market, against almost 79 billion euros for the Volkswagen group.

Porsche’s stock market performance has been impressive, with action already up nearly 10% since its IPO at €82.50 a share. stock. However, we were not necessarily extremely confident about the Porsche IPO. Especially since there was still quite a headwind. Already the other listed luxury car manufacturers have struggled since the start of the year, such as Ferrari (-14.5% since January*) and Aston Martin (-92.6% since January*). Then we can also mention, pell-mell, the increase in rates, the energy crisis and the supply problems that affect the entire car sector.

The investors’ appetite has finally been there and it is a very good operation for the owners of the manufacturer. Previously, Porsche belonged 100% to the Volkswagen group, itself controlled by Porsche SE, which is a family holding company (also listed) not to be confused with the manufacturer. The manufacturer Porsche is therefore now a band apart on the stock market.

Porsche in the world’s top 4

In order to be successful with its initial public offering, Porsche had secured support from large investors around the table, such as the sovereign wealth funds in Qatar, Abu Dhabi and Norway. The latest rise in price is also linked to the investment banks’ purchases that accompanied the IPO of nearly 3.8 million Porsche shares (for around 312.8 million euros, according to Reuters). Planned purchases under an IPO over-allotment option. This could also involve up to 14.85 million shares (worth €1.2 billion).

To give you an idea of ​​the size of this operation, it is quite simply the largest IPO in Europe since Glencore in 2011, if we compare the volumes of issues. In Germany, it is the second largest IPO in the country’s history after Deutsche Telekom in 1996.

Porsche is now the first European manufacturer on the stock market and the fourth in the world, just behind Tesla, Toyota and China’s BYD. If we compare with a French group, Porsche is already worth almost twice as much as Stellantis. And yet the group sells almost 20 times fewer vehicles per year. But it must be said that it is of course a completely different segment. The average selling price at Porsche is still just over 109,000 euros, according to BFM Bourse calculations.

As we did at the start of 2020 for Tesla, whose share price rose by 80% in just over a month at the time, the BFM Bourse had fun comparing the valuation of certain car manufacturers per sold car. This makes it possible to playfully display multiples of valuation in the luxury car. We therefore looked at Ferrari and Aston Martin as well as Tesla, which remains by far the largest capitalization in the world in this sector. We have taken the current market values* to compare with sales data for the whole of 2021, as not all groups make accurate sales forecasts for this year. And of course we have converted all figures into euros**.

3 million euros per car sold

At this little game, Porsche is still far from Ferrari’s level, which seems invincible. Ferrari is thus worth more than 3.13 million euros per car sold. While Porsche is “only” valued at 270,000 euros per delivered vehicle. Which is still significant. Aston Martin is far behind with a market value corresponding to 67,500 euros per car sold. More surprisingly, however, Tesla still shows a value equivalent to more than 800,000 euros per sold vehicle. Which puts it just behind Ferrari, which is still a step ahead of everyone else.

Data to be compared with the revenue generated per car sold (in 2021): 58,503 euros for Tesla, 109,603 euros for Porsche, 201,522 euros for Aston Martin and finally 382,868 euros for Ferrari. The order is somewhat different when looking at the operating margins per car sold in 2021: -14,082 euros for Aston Martin, 7,082 euros for Tesla, 17,596 euros for Porsche and 96,413 euros for Ferrari. However, be careful to note that some manufacturers get significant income outside of car sales. This is the case of Tesla (about 12% of its revenue excluding cars) or Ferrari (about 16% of its income, mainly through the sale of derivative products and the supply of engines to Maserati). However, this would only marginally change this list of winners.

*courses stopped on Thursday 6 October 2022 during the day

*exchange rates for Thursday 6 October 2022

Jean-Louis Dell’Oro – ©2022 BFM Bourse

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