Porsche shares slid more than seven percent on Monday after the company confirmed delays in its electric vehicle strategy. The carmaker had already warned that weaker EV demand will lower its 2025 earnings.
Volkswagen shares drop too
Parent company Volkswagen also lost more than seven percent on the same day. It announced billions in spending to renew Porsche’s line-up, raising investor concerns. The decline shows how European carmakers face tough Chinese rivals and a sluggish economy.
Forecast slashed
Porsche cut its profit margin outlook from as high as seven percent to two percent or less. It cited US import tariffs, falling Chinese luxury sales and slower EV adoption. Managers confirmed new electric models will be delayed. Petrol production will continue longer despite Europe’s 2035 ban on combustion cars.
Pressure on emissions policy
Manufacturers are urging Brussels to relax strict climate rules, calling them unrealistic. Porsche has shifted plans and will launch its next SUV line only with petrol and hybrid engines. The Panamera and Cayenne will also remain available with combustion options well into the 2030s.
Competition intensifies
BMW and Mercedes-Benz are cutting costs to stay competitive. Chinese automakers BYD and XPeng are locked in a fierce price war. Car prices in China have dropped 19 percent in two years, now averaging 165,000 yuan, or £17,150.
Electric ambitions scaled back
Porsche’s latest move signals retreat from its earlier bold targets. A decade ago, it revealed the Mission E as a symbol of its future. Today, it concedes the shift to electric will take far longer than once promised.
