Downward Revision for Porsche Due to US Import Tariffs and Permanently Lower Chinese Demand

Porsche is uniquely positioned as a luxury car company with scale benefits, selling more than 10 times the volume of most luxury car brands per year with about 65% of its volume being sold at a price point above EUR 100,000 per vehicle. Despite its higher volume, its superior margins relative to its automotive peers reflect the brand’s continued value, thus warranting a narrow moat rating.