Mercedes-Benz’ Q3 23 results disappointed as the company indicated that rising costs are now eating into the profitability of the MB Cars division (its largest segment). The low end of the 12-14% MB Cars FY23 guided range is the new base-line. Also, the BEV market ramp-up now appears to be anything but linear, thus questioning OEM’s pricing policy up to MB’s premium segment. As it is starting to be rainy outside, let us reconsider the downside potential of our FY24-25 margin expectations.
