In recent years, it has seemed inevitable that every auto maker would be spun off in their own share IPO. After all, why not? If Tesla can be valued over a trillion dollars, why can’t Porsche? What does Tesla have that Porsche doesn’t? We recently saw Volvo’s Polestar spun off and IPO with a SPAC. The market is in turmoil at the prospect of dumping tons of cash into the Stuttgart-based manufacturer. Alas, it doesn’t seem to be in the cards for the moment.
An initial public offering could be a good way for the company to raise extra capital without doing much else. After all, a Bloomberg analyst suggested to Automotive News that Porsche alone “is worth” almost as much as the entire Volkswagen Group together should be spun off and listed alone. They positioned Porsche’s value at around € 99 billion, while VW AG currently has a market capitalization of € 122 billion.
This week, Volkswagen Group CEO Herbert Diess threw some water on the growing fire of Porsche speculation. Diess suggested on Thursday that while the company plans to seek external funding for investments in electric vehicle batteries, it is not currently looking to divest the business.
While it would potentially be nice for Porsche fanatics to invest their money in the company they love and share some of Porsche’s success, it looks like it won’t. At least for now. The company is in good shape and sells cars pretty much as fast as possible. Were it not for the chip shortage and wild supply chain delays, I’m sure Porsche’s deliveries in 2021 would be even higher than they already are. With so many cars practically jumping off the showroom floor, Porsche doesn’t really need an IPO right now, does it?