More ICE in Hot Water (Patreon)

The company calls 2025 the "trough," expecting a rebound in 2026 with profit margins back to high single digits. I think they are delusional.

Let me tell you why

1. Thei EVs are too expensive and have battery issues and do not drive themselves.

2. U.S. import tariffs hiking costs, and a luxury sales slump in China (Porsche's second-biggest market) have really really hurt them.

3. Ususal poor supply chain mgt, higher raw material costs, and currency fluctuations. Broader auto industry woes (e.g., chip shortages lingering) compound this.

4. They are canceling in-house battery production

5. They are delaying new EV models (like a cheaper Macan successor), and extending gas-powered engines to meet "customer realities." This "Verbrenner-Verlängerung" (ICE extension) reflects softening EV demand but racks up massive restructuring bills. Kinda like GM focusing on new V8 Engines... insane idea.

Over the next five years, most carmakers are in for a world of pain — and that doesn’t include Tesla. The fact that traditional automakers are struggling is yet another tailwind for the autonomous AI leader.