Porsche shares fell by more than seven percent on Monday after the company admitted delays in its electric strategy. The sports car maker warned last week that weaker EV demand will cut into its 2025 earnings.
Volkswagen shares also fall
Parent company Volkswagen also lost more than seven percent on the same day. It pledged billions to renew Porsche’s line-up, which unsettled investors further. The parallel drop shows how European carmakers struggle with Chinese competition and a weak economy.
Profit forecast cut sharply
Porsche reduced its profit margin target from up to seven percent to two percent or less. The company pointed to US tariffs, the shrinking Chinese luxury market and slower electric adoption. Managers confirmed delays for new EVs. Production of petrol models will last longer, despite Europe’s 2035 ban on new combustion cars.
Industry pushes back on rules
Manufacturers want European regulators to relax emissions limits, saying they cannot meet current goals. Porsche now plans to launch an upcoming SUV range with combustion and hybrid engines only. Panamera and Cayenne models will also remain available with petrol options well into the 2030s.
Competition reshapes the market
BMW and Mercedes-Benz are also cutting costs to survive in tougher conditions. Chinese brands such as BYD and XPeng are locked in a price war. The average car price in China has dropped by about 19 percent in two years, to roughly 165,000 yuan, or £17,150.
Retreat from bold ambitions
Porsche’s latest message shows it is slowing its electric drive. The company introduced its Mission E concept ten years ago to highlight its electric future. Now its strategy reveals the transformation will take far longer than planned.
