Porsche stock fell more than seven percent on Monday after the company confirmed setbacks in its electric vehicle rollout. The automaker had already warned that weaker demand would cut into its 2025 earnings.
Volkswagen shares also fall
Parent company Volkswagen saw its stock drop by over seven percent on the same day. It pledged billions to refresh Porsche’s line-up, raising investor concerns. The decline highlights the challenges European carmakers face from Chinese rivals and a slowing economy.
Profit outlook slashed
Porsche reduced its profit margin forecast from as high as seven percent to two percent or less. It cited US tariffs, declining luxury sales in China, and slower EV adoption. Executives confirmed several electric models will be delayed. Petrol models will remain in production longer despite Europe’s 2035 combustion ban.
Automakers seek regulatory relief
Manufacturers are pressing European authorities to ease strict emissions targets. Porsche shifted plans, announcing its next SUV line will launch only with petrol and hybrid engines. Panamera and Cayenne models will also continue offering combustion options well into the 2030s.
Competition heats up
BMW and Mercedes-Benz are cutting costs to stay competitive. Chinese brands such as 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 signals a step back from its earlier electric goals. Ten years ago, the company unveiled the Mission E concept as a symbol of its future. Today, it admits the transition will take far longer than expected.
