Porsche shares fell more than seven percent on Monday after the company confirmed delays in its electric vehicle plans. The automaker had already warned that weaker demand would weigh on its 2025 earnings.
Volkswagen shares fall as well
Parent company Volkswagen also saw its stock drop by over seven percent on the same day. It pledged billions to refresh Porsche’s line-up, causing investor concern. The decline underscores the challenges European carmakers face from Chinese competitors and a slowing economy.
Profit forecast slashed
Porsche reduced its profit margin outlook from as high as seven percent to two percent or less. It cited US tariffs, falling luxury sales in China, and slower EV adoption. Executives confirmed that several electric models will be delayed. Petrol production will continue longer despite Europe’s 2035 combustion ban.
Industry pressures regulators
Carmakers are lobbying European authorities to ease strict emissions targets. Porsche shifted its strategy, announcing that its next SUV line will launch only with petrol and hybrid engines. Panamera and Cayenne models will also continue offering combustion options into the 2030s.
Competition grows tougher
BMW and Mercedes-Benz are cutting costs to remain competitive. Chinese automakers like BYD and XPeng are engaged in a price war. Average car prices in China have fallen 19 percent over two years, now around 165,000 yuan, or £17,150.
Slower electric ambitions
Porsche’s latest update shows a step back from its ambitious EV plans. Ten years ago, the company unveiled the Mission E concept as a symbol of its future. Today, it concedes the transition will take far longer than originally planned.
