Porsche shares fell more than seven percent on Monday after the carmaker confirmed delays in its electric strategy. The company had already warned investors that weaker EV demand will cut into its 2025 profits.
Volkswagen dragged down
Parent company Volkswagen also saw its shares sink by more than seven percent. It pledged billions to refresh Porsche’s model line-up, raising fresh doubts among investors. The downturn highlights the wider problems facing European carmakers against Chinese rivals and economic headwinds.
Forecast slashed sharply
Porsche reduced its profit margin outlook from up to seven percent to just two percent or below. It blamed higher US tariffs, a weakening Chinese luxury market and slower electric adoption. Executives admitted several EV launches will be delayed. Petrol-powered cars will stay longer despite Europe’s 2035 combustion ban.
Industry pressures Brussels
Manufacturers are pushing European lawmakers to soften emissions goals they view as unrealistic. Porsche confirmed its next SUV range will debut only with petrol and hybrid options. The Panamera and Cayenne will also keep combustion engines well into the 2030s.
Fierce rivalry from China
BMW and Mercedes-Benz have cut costs as competition intensifies. Chinese carmakers like BYD and XPeng are locked in a price war. Average car prices in China have dropped 19 percent in two years, to about 165,000 yuan, or £17,150.
Porsche steps back from vision
The latest move signals Porsche is retreating from its bold electric ambitions. A decade ago, it unveiled the Mission E as its electric flagship. Today, the company admits its transformation will take far longer than once promised.
