Porsche’s race with Ferrari is really no contest

Thirst for speed: People inspect Porsche cars at the London EV Show. Porsche achieved an 18% operating profit margin in the first nine months of this year. — Reuters

WHEN Porsche AG sold shares last year, the German sportscar maker hoped to follow in the gilded footsteps of Ferrari NV and achieve a valuation more in line with a luxury-goods company rather than a metal-bashing automaker.

Those dreams have begun to fray amid signs that Porsche is susceptible to an economic slowdown after all: The stock has declined around one-third since peaking in May, and now lies below the €82.50 (US$90.75) offer price.