Porsche stock dropped more than seven percent on Monday after the company confirmed a delay in its electric rollout. The German carmaker warned last week that weaker EV demand will hurt its 2025 earnings.
Volkswagen also under pressure
Parent company Volkswagen also saw its shares fall by more than seven percent on the same day. It announced plans to invest billions to refresh Porsche’s line-up, which deepened investor concerns. The joint downturn highlights challenges for European carmakers, squeezed by Chinese competition and a slowing economy.
Lower profit outlook
Porsche said on Friday that it had cut its projected profit margin from up to seven percent to two percent or less. The firm blamed US import tariffs, the shrinking Chinese luxury market and slower growth in electric mobility. Executives confirmed that new electric models will arrive later than planned. Production of petrol models will continue longer than expected, despite Europe’s 2035 ban on new combustion car sales.
Pushback on regulation
Car manufacturers are pressing European regulators to ease emissions rules, arguing the targets are unrealistic. Porsche has now shifted its strategy, announcing that a future SUV line will launch with combustion and hybrid engines only. Models like the Panamera and Cayenne will remain available as non-electric cars well into the 2030s.
Rivals cut costs amid competition
BMW and Mercedes-Benz are also cutting costs to keep pace with Chinese rivals. Brands such as BYD and XPeng are locked in a price war that is reshaping the market. Average car prices in China have dropped by about 19 percent over the last two years, to around 165,000 yuan, or roughly £17,150.
Scaling back ambitions
Porsche’s latest statement signals a step back from its ambitious electric plans. The company first presented its Mission E concept a decade ago as a symbol of its electric future. Today’s strategy shows that transition will take far longer than once promised.
