US Markets
Thursday, October 26th, 2023 2:04 pm EDT
Key Points
- Mercedes-Benz reported a decline in both profit and revenue, causing a 5.8% drop in its shares. The company attributed these challenges to increased competition in the electric vehicle (EV) market and ongoing supply chain issues.
- Chief Financial Officer Harald Wilhelm described the EV market as highly competitive, with some traditional automakers selling EVs at lower prices compared to combustion-engine cars, despite higher production costs. He expressed concerns about the sustainability of the current status quo in the industry.
- Despite these challenges, Mercedes-Benz remains committed to its target of achieving 50% hybrid and EV global sales by 2025 and transitioning to launching electric-only models. The company saw its share of all-electric vehicle sales increase from 6% to 11% in the first nine months of the year.
Mercedes-Benz reported a decline in profit and revenue, leading to a 5.8% drop in its shares. The company cited challenges from electric vehicle (EV) competition and supply chain issues as contributing factors. Chief Financial Officer Harald Wilhelm described the EV market as a “pretty brutal space,” noting that some traditional automakers are selling EVs for less than combustion-engine cars, despite higher production costs. Mercedes-Benz’s group earnings before interest and taxes (EBIT) fell 7% to €4.8 billion in the third quarter, with revenue down 1.4% to €37.2 billion. The company is committed to its target of achieving 50% hybrid and EV global sales by 2025 and launching electric-only models from then on. Despite challenges, Mercedes-Benz’s share of all-electric vehicle sales has increased from 6% to 11% in the first nine months of the year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/26/mercedes-benz-shares-fall-6percent-as-cfo-warns-on-brutal-ev-space.html
