Porsche's Warning: Luxury Market Hit by Economic Woes

Porsche and Tesla have both issued warnings about the impact of high interest rates on their businesses. Porsche's CFO, Lutz Meschke, stated that inflation and high rates were a concern, leading to customer reluctance to invest in new products. Tesla CEO Elon Musk also expressed concerns about high rates, emphasizing that they reduce affordability and make it harder for people to buy cars. Both companies highlighted China as a region of concern, with Porsche expecting a challenging year in 2024 due to the geopolitical situation and the economy. Despite these warnings, Porsche confirmed its forecast for the current financial year, citing strong sales and positive product mix as contributing factors.