Investor's Corner
Mercedes, Porsche, BMW stocks defy market downturn despite disruptions
The stocks of German luxury automakers, including Mercedes, Porsche, and BMW, have remained strong in recent months despite numerous disruptions.
Say what you will about Tesla stock, but over the past year, the one thing it has been, is volatile. The Tesla stock observes multiples of the movements of other legacy automakers, but it hasn’t been the only one that has felt the ebbs and flows of 2022. Other automakers, including Ford and GM, have seen massive falls in stock value over the same timeframe. But simultaneously, luxury German automakers have mysteriously not seen the same rapid declines in stock prices, some (Porsche) even increasing in value over the same timeframe.
Looking at the stock offerings from Mercedes (XETRA: MBG), Porsche (XETRA: P911), and BMW (XETRA: BMW) on the German stock exchange in Frankfurt, the companies’ respective stabilities are immediately visible over the past year.
Each of the stocks (save Porsche) showed a substantial drop at the beginning of the year, likely influenced by the invasion of Ukraine, but in the final six months of the year, each stock offerings nearly wholly recovered. This is despite the near-constant supply shortages that have plagued (and continue to plague) the auto industry, notably in Europe.
There are likely a couple of factors that have led to these stocks’ resilience, particularly Porsche whop has seen a slight increase in value since its IPO in Q4 of last year. Foremost being earnings, each company has reported strong earnings throughout the year, motivated by continued strong sales growth.
Most recently, the KBA reported that Mercedes grew sales in Germany throughout the year by over 8%, making them the second-largest automaker in the country. And while Mercedes has not announced earnings for Q4 of 2022, its Q3 earnings/production report was a massive success; growing sales compared to the prior year, maintaining its uniquely strong profit margins, and continuing to expand EV offerings globally; giving the business a clear direction forward.
Porsche has seen similar success. Despite Volkswagen Group reporting less than stellar sales and revenue numbers, notably due to a weakening of sales from its Volkswagen brand, the same could not be said for its top-tier Porsche brand. In fact, the company has been so bold and cavalier that it has announced that it will be joining Formula 1 in the coming season, a substantial investment that may have even emboldened investors.
As for BMW, while it has not announced a new Formula 1 endeavor nor has it seen significant sales growth in its typically strong German market, it has been able to keep sales higher than many anticipated, especially considering the auto group’s manufacturing base in China. And outside of German sales, the company has witnessed continued strength in the American market, particularly for its newest electric offerings.
Finally, a more long-term investment strategy from German investors may be keeping each of these brands afloat during this tumultuous time. Each of these companies has a prime opportunity for growth as they move towards electrification. And while this new endeavor has required each company to take on sizable debt, the success of new EV models (Mercedes EQS, Porsche Taycan, and BMW i4) has proven the investment worthwhile. It’s no wonder investors see the brands as a safe bet going forward.
Perhaps the prominent lesson that can be learned from the stalwart German companies is a renewed focus on automaker fundamentals instead of mysterious jumps and falls in stock prices. None of the above brands could claim that 2022 was an easy year for them, but with a positive, forward-looking c-suite and group of investors, each of these companies has benefited.
William is not invested in any of the above companies directly but is invested in ETFs that include all of the above companies.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Tesla has its answer to grow its automotive sales over the next few years, TD Cowen analyst Itay Michaeli says, but it just has to bring it to the U.S.
On Thursday, Michaeli reiterated his $490 price target and the ‘Buy’ rating he already held on Tesla stock (NASDAQ: TSLA). However, its automotive division has struggled to show sequential growth over the past few years, mostly due to its focus on AI and Full Self-Driving. Tesla already axed two of its lower-volume vehicles with the Model S and Model X earlier this year.
However, Tesla does not need to engineer an entire new vehicle to trigger an upward tick in sales; it just has to bring it from China to the U.S., Michaeli said.
He is talking about the Model Y L, a slightly larger version of the all-electric crossover that is already available in China. U.S. customers have been pleading with CEO Elon Musk to bring it to the country since its launch in Asia last year, but he’s not convinced of it because of the advent of self-driving and its importance in this particular market.
The problem is that Tesla owners have been requesting something larger that could fit a typical American family. The Model Y L is slightly larger than the standard Model Y, but some are concerned that it could still be too small to fit what most people might need.
Instead, they have asked for a full-size SUV from Tesla.
Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck
Nevertheless, the Model Y L still presents a great opportunity for Tesla in the U.S., and Michaeli says that there is an additional sales opportunity of about 100,000 units, with demand potential falling somewhere between 60,000 and 135,000 units.
TD Cowen’s note to investors also analyzed that Tesla’s growth could come from a stock perspective as well, positively impacting the stock price, as it has been widely reliant on vehicle sales, even though Tesla has truly phased itself away from that being an important metric.
Tesla stands to gain greatly from the introduction of the Model Y L in the U.S., but only if Elon Musk sees it as a viable fit for the market. Families may need to see Tesla bring something larger to the U.S., or they might be forced to buy from another automaker that offers something that fits is needs for more interior space to haul around the kids.
Tesla revises FSD transfer policy on new Cybertruck trim, causing cancellations
Tesla tipped its hand at where Robotaxi is heading next
