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Opinion
Chris Bryant

Why Volkswagen Buyers Get a Lamborghini for Free

The upcoming Porsche IPO was supposed to unlock value, but recession fears and software issues are holding the German giant back.

Try keeping up.

Try keeping up.

Photographer: Ker Robertson/Getty Images Europe

More than 70% of the roughly 1 million Porsche 911 sports cars built since the 1960s are still on the road. While one wonders what happened to the others, it shows 911s are prized by collectors and so tend to hold their value. Alas, one can’t say the same about parent company Volkswagen AG’s shares.

Porsche has been touting its strengths ahead of an initial public offering planned for later this year. Owing to its bumper cash flows and big strides in electrification — the battery-powered Taycan already outsells the 911, and Porsche is targeting more than 80% of its car sales to be electric vehicles by 2030 — a valuation of around 80 billion euros ($82.1 billion) looks attainable, according to analysts and my own back-of-the-envelope calculations.