Porsche shares dropped more than seven percent on Monday after the company confirmed delays in its electric vehicle rollout. The sports carmaker had already warned that weaker demand will hit its 2025 earnings.
Volkswagen shares tumble too
Parent company Volkswagen also lost more than seven percent on the same day. It announced plans to spend billions on updating Porsche’s line-up, unsettling investors. The slump underlines the struggles of European carmakers facing Chinese competition and a weak economy.
Profit warning shocks investors
Porsche cut its expected profit margin from as high as seven percent to two percent or below. It blamed US tariffs, a slowdown in China’s luxury market and weaker electric growth. Executives admitted that several new EV launches will be pushed back. Petrol models will stay in production longer, despite the EU’s 2035 combustion ban.
Industry challenges regulators
Manufacturers are pressing European authorities to ease climate targets they see as unrealistic. Porsche shifted course by deciding that a future SUV line will appear only with petrol and hybrid engines. Models such as the Panamera and Cayenne will also keep combustion options into the 2030s.
Luxury rivals under pressure
BMW and Mercedes-Benz are also cutting costs to withstand the changing market. Chinese rivals BYD and XPeng are locked in a price war at home. Average car prices in China have dropped 19 percent in two years to about 165,000 yuan, or £17,150.
Retreat from electric ambition
Porsche’s latest strategy signals a retreat from its once ambitious EV vision. A decade ago, it revealed the Mission E concept as a showcase of its future. Today, the company admits the transition will take much longer than expected.
